At an event in New Delhi, Union Minister of Commerce and Industry Suresh Prabhu launched three tools: the State and Union Territory Startup Ranking Framework, the Compendium of Good Practices for Promoting Startups in India and the Startup India Kit.
The key objective of the Startup States and UTs Ranking Framework is to encourage States and UTs to take proactive steps towards strengthening the Startup ecosystems at the local level, said the ministry. "The Ranking Framework will measure the impact of each step initiated at the local level for building a strong Startup ecosystem. The Ranking Framework will also enable contnuous learning through the dissemination of good practices," it added.
India is home to about 20,000 startups, with about 1,400 beginning operations every year. The State and UT Ranking Framework is based on the feedback collected from Startup ecosystem stakeholders, which include startups, mentors, investors, accelerators, incubators and the government bodies. Areas which should be given greater thrust like seed funding support, women entrepreneurship are given more score.
Startup Ranking framework designed by Department of Industrial Policy and Promotion is an exercise aimed at ranking States for establishing a robust ecosystem for supporting Startups.
Prabhu furthersaid, "I am confident that the ranking framework would promote healthy competition among the States and enable them to further learn, share and adopt best practices across the seven identified key parameters. I am sure the exercise would generate collaboration amongst all the stakeholders to turn the Prime Minister’s vision to have Startups in every district and every block a reality". The framework will evaluate States on parameters such as Startup policy and implementation, incubation support, seed funding support, angel and venture funding support, simplified regulations, easing public procurement, awareness and outreach.
The event was attended by delegates from 19 States across the country, many Venture Capitalists, angel investors and Startups.