India’s startup landscape is diversifying as the Department for Promotion of Industry and Internal Trade (DPIIT) releases its latest States’ Startup Ecosystem Ranking, highlighting regional advances in policy, funding access, incubation and innovation. Gujarat tops the list for the fifth consecutive year, while smaller states such as Arunachal Pradesh and Goa show notable progress.
Gujarat retains top position through sustained policy and execution
Gujarat has again been declared the Best Performer in Category A, which covers states and Union Territories with populations above one crore. The state’s consistent emphasis on ease of doing business, streamlined approvals, and active industry-government collaboration has reinforced its appeal to founders and investors.
Officials and ecosystem stakeholders attribute Gujarat’s sustained lead to long-term strategic planning, strong implementation of startup policies, and a growing network of incubators and accelerators that support both early-stage ventures and scale-ups.
Arunachal Pradesh and Goa emerge as leaders in smaller-state category
In Category B, representing smaller states and Union Territories, Arunachal Pradesh and Goa secured Best Performer ranks. Their recognition signals the widening geographic footprint of India’s entrepreneurial activity beyond traditional urban centres.
Arunachal Pradesh’s rise reflects targeted efforts on capacity building, local innovation promotion and institutional support aimed at nurturing homegrown entrepreneurs in the Northeast. Goa’s ecosystem, traditionally centred on tourism, has diversified into technology, creative industries and service-oriented startups, supported by local mentorship and funding initiatives.
Other states show meaningful gains across ecosystem indicators
Several larger states also registered strong performance and improvements across the DPIIT parameters. Karnataka, Tamil Nadu, Punjab and Uttar Pradesh were noted for advancing governance, market access and funding support for startups.
These states have expanded measures such as seed grants, mentorship programmes, university‑industry partnerships and incubation support to strengthen regional innovation pipelines and help startups scale.
Role and relevance of the DPIIT ranking
The DPIIT ranking is designed as a policy instrument as much as an evaluative exercise. By benchmarking states on governance, infrastructure, funding availability and innovation outcomes, the framework helps identify gaps, surface best practices and motivate targeted reforms.
For entrepreneurs and investors, the ranking provides actionable insight into regional strengths and helps guide decisions on where to found and grow businesses based on local support systems and market access.
Implications for inclusive, regionally balanced growth
India’s startup ecosystem is now among the world’s largest, underpinned by a broad network of incubators, accelerators and institutional partners. The latest rankings underscore a gradual decentralisation of innovation, with smaller and emerging regions increasingly contributing to national entrepreneurial activity.
As Gujarat maintains leadership and states such as Arunachal Pradesh and Goa rise, the trend is likely to foster wider employment opportunities, bolster local innovation and contribute to more balanced economic development across the country.
