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Gujarat, Meghalaya, and Karnataka have emerged as the best performer states in developing a startup ecosystem for budding entrepreneurs, according to the ranking of states and union territories by the Department for Promotion of Industry and Internal Trade (DPIIT).

Kerala, Maharashtra, Odisha, and Telangana were categorised as top performers.

The states’ startup ranking for 2021 was released by Commerce and Industry Minister Piyush Goyal on Monday.

A total of 24 states and seven union territories (UTs) participated in the exercise, which ranked them under five categories—best performers, top performers, leaders, aspiring leaders and emerging startup ecosystems.

The rankings are based on the initiatives taken to develop the startup ecosystem for promoting budding entrepreneurs.

The last ranking was announced in September 2020. Gujarat had then retained the top slot.

The third edition of the ranking of states’ on support to startup ecosystems was released by Commerce and Industry Minister Piyush Goyal.

The Department for Promotion of Industry and Internal Trade (DPIIT) conducted the exercise with the objective to promote India’s vision of competitive and cooperative federalism, the ministry said in the statement.

The exercise was launched in 2018 to encourage states and Union territories to work towards easing regulations for the growth of startups and strengthening the support to the startup ecosystem.

“A total of 24 states and seven union territories participated in the exercise this year, an increase from 25 last year and the highest till date,” the statement added.

As India becomes one of the leading startup nations globally, the growth of entrepreneurship in Tier-II and Tier III cities in the country have become necessary, the ministry said, adding there were four states/UTs with startup policies in 2016, and today, there are over 30 states/UTs that have startup policies, and 27 states/UTs have their own state startup portal.