Rajasthan, the largest state in India by area, has once again clinched the title of ‘Top Performer’ in the Department for Promotion of Industry and Internal Trade (DPIIT)-initiated States’ Startup Ranking Framework (SRF) for the year 2022. This marks the second consecutive year that Rajasthan has been recognized for its exceptional efforts in fostering a thriving startup ecosystem.
The announcement of the fourth edition of the Startup Awards & State Ranking Awards for 2022 coincided with the celebration of National Startup Day on January 16, 2024. The rankings are a testament to the steps taken by states and union territories (UTs) to bolster the growth of their respective startup ecosystems.
Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution, and Textiles, Piyush Goyal, emphasized the pivotal role of startups in India’s journey toward becoming a developed nation by 2047 during the event.
Rajasthan’s consistent performance in the startup ranking comes as no surprise, given the state’s unwavering support for homegrown startups and entrepreneurs, as acknowledged by DPIIT.
Why Rajasthan Is The ‘Top Performer’
Inc42 research reveals that Rajasthan is home to over 3,700 DPIIT-registered startups. Jaipur, serving as the primary hub, hosts more than half of the state’s total startup ecosystem, driven by the government’s initiative, iStart. The total funding raised by startups in Rajasthan since 2014 has exceeded $307 million.
Inderjeet Singh, Commissioner and Special Secretary of the Rajasthan Government, highlighted the state’s commitment to innovation and entrepreneurship through iStart. Singh mentioned, “Since its inception in 2017, iStart has been pivotal in supporting startups across sectors like agritech, SaaS, healthtech, and ecommerce, showcasing Rajasthan’s commitment to driving innovation and entrepreneurship.”
In 2021, the Rajasthan Chief Minister announced the ‘The iStart School Startup Programme’ to instill an entrepreneurial mindset in students from classes 8th to 12th. The initiative provides mentoring, resources, and infrastructural support with incubation centers across 33 districts.
According to Inc42’s State Of Rajasthan Startup Ecosystem Report 2023, iStart has contributed to creating over 29,000 jobs within the state and has onboarded more than 3,900 startups, with over 1,100 focusing on cutting-edge technologies.
Singh mentioned, “iStart has gone beyond incubation support, startups affiliated with iStart have secured over INR 670 Cr in additional venture capital funding.”
How States’ Startup Ranking Framework (SRF) Works
Launched in February 2018, the States’ Startup Ranking Framework (SRF) evaluates the efforts made by Indian states/UTs to boost the startup ecosystem. It ensures states/UTs take initiatives and formulate policies to foster startup growth within their jurisdictions.
The SRF facilitates states/UTs in creating a conducive environment for startups and entrepreneurial activities, identifying gaps, and suggesting areas of improvement. The evaluation covers seven reform areas with 25 action points, including institutional support, fostering innovation, access to markets, incubation, mentorship support, funding, capacity building, and a sustainable roadmap.
In the latest edition, 33 states/UTs participated, with 31 having formulated state startup policies. The evaluation covered 3,102 startups that received funding amounting to INR 392 Cr.
