India’s startup landscape is becoming more geographically diverse, with the latest DPIIT States’ Startup Ecosystem Ranking highlighting strong performances from both large and smaller states. Gujarat has retained its lead, while northeastern and coastal regions show notable gains as policy support and incubation spread beyond metro hubs.
Gujarat retains top spot for fifth consecutive year
Gujarat has been named the Best Performer in Category A — covering states and Union Territories with populations above one crore — for the fifth year running. The state’s consistent ranking reflects sustained policy emphasis on ease of doing business, timely approvals, and close collaboration with industry and investors.
Officials and entrepreneurs cite Gujarat’s focused implementation of startup-friendly measures, a robust incubation and acceleration network, and active engagement by state agencies as key factors enabling both early-stage ventures and scale-ups to grow.
Arunachal Pradesh and Goa lead smaller-state performance
In Category B, which includes smaller states and Union Territories, Arunachal Pradesh and Goa emerged as Best Performers. Their recognition points to the widening reach of India’s startup movement beyond traditional urban centres.
Arunachal Pradesh’s ranking underscores targeted efforts in capacity building, local innovation promotion and institutional support, particularly across the Northeast. Goa’s ecosystem has diversified past tourism, showing growth in technology, creative industries and service-led startups.
Other states showing strong progress
Several larger states also recorded notable improvements across evaluation metrics. Karnataka, Tamil Nadu, Punjab and Uttar Pradesh were highlighted for advances in governance, market access and support mechanisms.
These states have introduced or expanded measures such as seed funding, startup grants, mentorship programmes and academia‑industry partnerships to deepen regional innovation capabilities and support entrepreneur-led job creation.
Why the DPIIT ranking matters
The DPIIT framework assesses states on policy frameworks, infrastructure, access to funding, incubation support and innovation outcomes. Beyond ranking, the exercise functions as a policy tool to surface gaps, disseminate best practices and motivate continual improvement in state startup strategies.
By spotlighting governance, market connectivity and funding ecosystems, the ranking also helps entrepreneurs and investors identify regions offering conducive conditions for setting up and scaling businesses.
Implications for inclusive regional growth
India now hosts one of the world’s largest startup ecosystems, supported by thousands of incubators, accelerators and institutional partners. The latest rankings indicate a maturing pattern: innovation is decentralising, reaching smaller and emerging regions alongside traditional hubs.
With Gujarat’s sustained leadership and the rising performance of states such as Arunachal Pradesh and Goa, the momentum is expected to widen employment opportunities, foster local innovation and contribute to balanced economic development across India.
