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States’ ranking on Startup initiatives

Topic:

  1. Development processes and the development industry the role of NGOs, SHGs, various groups and associations, donors, charities, institutional and other stakeholders.

 

States’ ranking on Startup initiatives

 

What to study?

  • For Prelims: About States’ Start- up Ranking 2018- key facts.
  • For Mains: Significance of the rankings and challenges ahead, significance of the startups, the need for a supportive ecosystem.

 

Context: Department for Promotion of Industry and Internal Trade (DPIIT) has released second edition of Startup Ranking for 2019.

 

Startup Ranking framework:

  • The Startup Ranking framework aims to rank the States/UTs for establishing a robust ecosystem for supporting Startups.
  • The framework also encourages States and UTs to identify, learn and replicate good practices from each other.

 

The 2019 edition:

  • The Ranking Framework 2019 comprises of 7 pillars and 30 action points. The pillars will assess States’/UTs efforts across institutional support, simplifying regulations, easing public procurement, incubation support, seed funding support, venture funding support and awareness and outreach related activities.
  • The ranking exercise aims to evaluate measures taken by States/UTs during the assessment period from May 1, 2018 to June 30, 2019.

 

Significance of Startups:

  • India is home to about 20,000 startups, with about 1,400 beginning operations every year. They are not only driving economic growth but also leading to technological innovations and employment generation in every state. Entrepreneurs are introducing new solutions everyday and also improving existing processes.
  • To encourage and help statrups the Govt of India has taken the lead in creating policies and a framework. Many States and UTs have a startup focussed environment with ease of doing business for startups.

 

Way ahead:

The Govt has to align its strategies to tap into the infinite potential of young entrepreneurial minds. Startups need help in the journey from idea to business and business to success. States will also have to take proactive steps to enable startup ecosystems at the local level.

 

Mains Question: Critically evaluate performance of the Start Up India initiative.