Gujarat has been ranked as the best state in developing startup ecosystem for budding entrepreneurs, department of industrial policy and promotion (DIPP) survey said. Karnataka, Kerala, Odisha and Rajasthan are the other top performers on the list. “This exercise will help all the states to improve the ecosystem for promoting startups,” PTI reported citing DIPP Secretary Ramesh Abhishek.
The rankings were announced on Thursday by the DIPP based on the ecosystem the states and Union Territories (UTs) for 2018 have created for the startups.
The ranking framework covers seven areas of intervention and 38 action points, such as policy support, incubation centres, seed funding, angel and venture funding and easier regulations.
In total, 14,565 startups were examined by DIPP across the country. Maharashtra has the largest number of startups (2,787), followed by Karnataka (2,107), Delhi (1,949), Uttar Pradesh (1,201), Haryana (765) and Gujarat (764). The firms offer services in several sectors including IT, healthcare, education, food, agriculture, renewable energy, and technology hardware.
The Startup India Action Plan was launched by the Modi government in January 2016 to promote entrepreneurs in the country. The plan aims to give incentives such as tax holiday and inspector raj-free regime and capital gains tax exemption.
Meanwhile, notices were recently issued to certain startups by the government raising concerns among the startup community. The commerce and industry ministry has taken up the issue of ‘angel tax’ notices being sent to startups with the finance ministry, Union Minister Suresh Prabhu recently said. Several startups have raised concerns on taxation of angel funds under Section 56 of the Income Tax Act, which provides for taxation of funds received by an entity.
“We have taken up the issue,” the commerce and industry minister said in a tweet. He said this in response to a tweet by Chairman of Manipal Global Education T V Mohandas Pai, who has sought “urgent” intervention by the government in the matter.