DIPP sets parameters to rank states on implementing startup policies

The Department of Industrial Policy and Promotion (DIPP) has presented a framework to rank states on various parameters in implementing startup India programme.

The ranking of the states will be evaluated by DIPP after they submit data around the central government ambitious campaign meant for strengthening startup ecosystem in the country.

The final ranking will be given to states by DIPP in coming April. To facilitate ranking for all 18 states that have announced startup policies, DIPP will be forming an independent committee.

Meanwhile, the states will be able to upload data on the Startup India Hub website from next year between January 01 and March 31. The DIPP will do the ranking in April every year, starting from this year.

Over the past couple of years, several states including Gujarat, Uttar Pradesh, Odisha, Karnataka, Goa, Chhattisgarh, and Telangana have framed their startup policies.

The rankings will be evaluated on the various parameters put by the department. It includes startup policy and its portal, network, mentors, funding support, tax incentives, incubators, and participation in the procurement, amongst others.

Also Read: DIPP recognised 5,350 startups, employed 40,000 people: Commerce Ministry

Since the announcement of Startup India Action plan in January 2016, the states have been working actively in implementing startup policies.

For instance, Jammu and Kashmir has launched Seed Capital Fund Scheme to motivate, train and facilitate a large segment of educated young men and women to take up entrepreneurship as a career option.

Last year, DIPP secretary Ramesh Abhishek had said that the govt has been able to provide $242.7 Mn (INR 1,587 crore) funding to startups.

Under the Fund of Funds for Startups, 75 startups have received funding to the tune of Rs 337.02 crore. Further, 74 startups have been recognised to avail tax exemption under the Income Tax Act.

According to the report, under DIPP-recognised 5,350 startups at least 40,000 people have been employed. It further said that Startup India Hub has been established as a single point of contact for the entire startup ecosystem to enable knowledge exchange and access to funding.

The development was first reported by ET.