IIMT Engineering College 127

Micro small medium enterprise

 A micro enterprise, where the investment in plant and
machinery or equipment does not exceed one crore
rupees and turnover does not exceed five crore rupees;
 A small enterprise, where the investment in plant and
machinery or equipment does not exceed ten crore
rupees and turnover does not exceed fifty crore rupees;
 A medium enteprise, where the invesment in plant
and machinery or equipment does not exceed fifty
crore rupees and turnover does not exceed two
hundred and fifty crore rupees.
MSME
India has registered 1.24 crore MSMEs till december
2022,which jointly employ 9.12 crore people. Over 23% of
these are women employees.
 Leather goods industry related business
 Manufacturing of Almirah, steel cocks
 Natural fragrance industry related business
 Placement services
 Beauty parlour services
 Khadi material and products
 Creches services
 Handicraft – spinning and weaving
 Coir industry
.
 X-ray clinics
 Manufacture furniture and wood products
 Tailoring units
 Poultry farming
 Bicycle parts sale and service
 Photo labs
 Stationary items
 Call centres
 Rubber products
 STD/ISD booths
 Laundry services
 Sales of auto part components
 Sales of ceramics and glass products.
 Role/features of MSME
 Employment generation
 Production
 Increase GDP
 Export contribution
 Innovation & Development
 Utilising local resources optimally
 Developing entrepreneurial capacity
 Feeder to large industries(packaging, Delivering,
transportation etc.)
 Reducing regional imbalance
Regulated through MSMED Act, 2006
 The micro small and medium enterprise development
 Seeks to facilitate the development of these
enterprises.
 Establishment of specific funds for the promotion,
development and enhancing competitiveness of these
enterprise.
 Different schemes have been launched to
grow MSME sector
1. International Cooperation Scheme
 Provide financial assistance of up 95% of airfare and space rent for
entrepreneur.
 Participation by Indian MSMEs in international exhibitions, trade fairs
and buyer sellers meets in foreign countries as well as in India, in
which there is international participation.
2. Assistance to training Institutions (ATI)
 Provided to training institutions in the form of capital grant for
creation/strengthening of infrastructure and support for conducting
entrepreneurship development and skill develop training programmes.
3. Marketing assistance
 Financial assistance of up to 95% of the airfare and space rent for
entrepreneur ; assistance is provided on the basis of size and type of
the enterprise
Credit Guarantee fund trust for Micro and
small Enterprise (CGTMSE)
 The corpus of CGTMSE is being contributed by GoI
and SIDBI.
 Collateral free loans up to limit of Rs. 50 lakh – for
individual MSEs.
Credit linked capital subsidy (CLCS) for technology
Upgradation
 Aims at facilitating technology upgradation by
providing 15% upfront capital subsidy to MSEs
ISO 9000/ISO 14001 certification Reimbursement
 Reimbursement of charges for acquiring ISO 9000/ISO 14001/HACCP
certification to the extent of 75% of expenditure subject to a maximum
of Rs. 75000 in each case.
National small industries corporation limited (NSIC)
 Established in 1955
 Headed by chairman cum managing director and managed by a board
of directors.
 To promote, aid and foster the growth of micro and small enterprise in
the country, generally on commercial basis.
 Provides a variety of support services to micro and small enterprise
catering to their different requirement in the area of raw material
procurement; product marketing; credit rating; acquisition of
technologies; adoption of modern management practices etc.
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IIMT Engineering College 127
Institutions set up by central government
 Small Industries development organization (SIDO)
 Management development Institute(MDI)
 Entrepreneurship development institute of India (EDI)
 All India small scale industries board (AISSIB)
 National institute of entrepreneurship and small business development (NIESBUD)
 National institute of small industries extension training
 National small industries corporation Ltd. (NSIC)
 Risk capital & Technology finance corporation Ltd. (RSTFC)
 National Research and development corporation
 Indian investment centre
 Khadi and village industries commission (KVIC)
 Indian institute of entrepreneurship (IIE)
 National Alliance of young Entrepreneurs (NAYE)
 Centre for Entrepreneurial development(CED) Ahmedabad
 Institute of entrepreneurial development (IED)
 Technical consultancy organisation (TCOs)
 Public sector banks
Institute set up at state government
 Small industries service institute (SISI)
 State financial corporation (SFC)
 State small industries corporation(SSIC)
 District industries centres (DIC)
 Technical consultancy organisation Ltd. (TCO)
 Industrial directorates
 Commercial and cooperative banks
 State industrial development corporation
 Industrial estates
 State industries corporation
 EOU’s : Export Oriented Units
 Have been defined under the foreign trade policy
 As those units undertaking to export their entire
production of goods and services.
 (except permissible sales in domestic tariff area (DTA)
 Engaged in manufacture of goods, including repair, re-
making, reconditioning, re engineering, rendering of
services, development of software, agriculture
including agro processing, aquaculture, animal
husbandry, biotechnology, floriculture, horticulture,
pisciculture, viticulture, poultry and sericulture.
 Trading unit are not cover under EOU.
Objectives of EOU’s
 To promote exports
 To enhance foreign exchange earnings,
 To attract investment for export production and
 To generate employment
Application procedure and approvals required for setting up
of an EOU
 An application for setting up an EOU need to be made in ANF6A
(in triplicate) to the office of the development commissioner of
the special economic zone)
 Application fee of Rs/- 5000 (demand draft)
 Documents required
o Certification of incorporation
o Articles of association(AOA)
o Partnership deed as the case may be,
o Existing and proposed capital structure, etc
.
 Application for setting up of EOU shall be approved or
rejected by unit approval committee (UAC) within 15 days.
 On approval, a letter of permission is issued by
development commissioner of the special economic
zone(SEZ) under whose administrative control the EOUs
comes.
 The validity of LoP is for a period of 5 years (excluding the
period of 2 years for commencement of production.
 Procurement of raw material or capital goods either
through import or through domestic sources is duty free.
 EOU are eligible for claiming input tax credit on the goods
and services.
Export-Oriented Units (EOUs)
 EOUs are units focused on exports and enjoy several fiscal and tax benefits:
 Customs and Excise Benefits
 Full exemption from customs duties on imports of capital goods, raw materials,
consumables, etc.
 No excise duty on procurement of goods from domestic markets.
 Direct Tax Concessions
 Income Tax Holiday: Section 10B of the Income Tax Act (now sunset for new
units) provided tax exemptions on profits derived from exports.
 Accelerated Depreciation: Benefits for investment in specified capital goods.
 Indirect Tax Benefits
 Full exemption from Goods and Services Tax (GST) for goods used in export
production.
 Refund of GST under the "Zero-Rated Supplies" mechanism for exports.
Subsidies
 Subsidies are financial incentives provided by the government to
support businesses and industries, including:
 Capital Subsidy: For establishing industries in backward or
special economic zones (SEZs). For example, the Capital
Investment Subsidy Scheme for Northeastern states.
 Technology Upgradation: Schemes like the Credit Linked
Capital Subsidy Scheme (CLCSS) help MSMEs upgrade their
technology at subsidized rates.
 Electricity Subsidy: Reduced power tariffs for industries in
designated areas.
 Interest Subsidy: Interest subvention schemes provide reduced
interest rates for loans in specific sectors like agriculture and
exports.
Grants
 Grants are one-time financial aids offered for specific
purposes, such as:
 R&D Grants: To promote innovation and research in
sectors like biotechnology and pharmaceuticals.
 Export Promotion Grants: Provided under schemes
like Market Access Initiative (MAI) and Market
Development Assistance (MDA).
 Infrastructure Development: For setting up
industrial parks, clusters, or mega food parks.
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IIMT Engineering College 127
New initiatives taken by government to
promote entrepreunership
SAMRIDH scheme
 Ashwini Vaishnaw, who was then a newly apponited
Minister of electronics information and technology
(MietY) launched the SAMRIDH scheme ,
 Stand for startup accelerators of MeitY for product
Innovation, development, and growth, on august 25,
2021.
 To provide funding support to startups along with
helping them bring skill sets together which will help
them grow successful.
.Startup India Seed Fund
 On 16 January 2021, Prime minister Narendra Modi
announced the launch of the “Start up India Seed fund”
worth INR 1000 crore
 To help startups and support ideas from aspiring
entrepreneurs.
 Government is taking important measure to ensure that
startup in india do not face any capital shortage.
Startup India initiative
 The prime minister launched the startup india initiative in
the year 2016 on 16th january.
 To increase wealth and employability by giving wings to
entrepreneurial spirits.
 The government gives tax benefits to startup under the
scheme and around 50,000 startup have been recognized
via these scheme in a period of a little more than five years,
as of june 3, 2021
.
ASPIRE
 A scheme for promotion of innovation, rural
industries and entrepreneurship is a government of
India initiative and promoted by the ministry of Micro,
small and medium enterprise.
 The mentioned scheme was launched in 2015 to offer
proper knowledge to the entrepreneur to start with
their business and emerge as employers.
 Aims at increasing employment, reducing poverty, and
encouraging innovation in rural India.
 However the main idea is to promote the agro business
industry.
Credit guarantee fund trust for Micro
and small Enterprise(CGTMSE)
 Set up by the government of India and had been put to
effect from 1st jaunary 2000 onwards.
 To provide business loan to micro level business, small
scale industries and start up with zero collateral.
 It allows business to avails loan at highly subsidized
interest rates without requiring security.
 By working along with SIDBI (small industries
development bank of India), the government provides a
maximum amount of up to INR 100 lakh under this scheme
for boosting new enterprise as well as rehabilitating the
existing ones. Primarily meant for manufacturing units.
 This loan can be availed in the form of working capital or a
term loan.
.
Stand up India scheme
 Stand up india for financing SC/ST and or women
entrepreneurs.
 According to the scheme, bank loans between 10 lakh
to 1 crore can be borrowed by at least one scheduled
cast (SC) or Schedule tribe (ST) borrower and at least
one woman per bank brand to set up greenfield
enterprise.
 The greenfield enterprise may be based out of
manufacturing services or the training sector.
 In case of non individual enterprise, it is mandatory
that an SC/ST or a woman entrepreneur holds at least
51% of the shareholding and controlling stakes.
Zero effect zero defect scheme
 The Zero Effect, Zero Defect (ZED) scheme is an
initiative launched by the Ministry of Micro, Small,
and Medium Enterprises (MSME), Government of
India, in 2016. It is designed to encourage and support
MSMEs to adopt world-class quality and
environmental standards in their manufacturing
processes. The scheme emphasizes producing high-
quality goods without adverse environmental effects,
ensuring that Indian products become globally
competitive.
Objectives of the ZED Scheme
 Enhance competitiveness of MSMEs by improving their
quality and sustainability standards.
 Encourage zero-defect manufacturing to improve
product quality and reduce rejections in domestic and
export markets.
 Promote zero-effect processes to minimize
environmental impacts, such as waste, pollution, and
energy inefficiency.
 Enable MSMEs to gain greater market access through
adherence to global quality standards.
 Support the Make in India initiative by improving the
global reputation of Indian goods.
Key Features
 ZED Certification: MSMEs are evaluated on various quality and
environmental parameters and certified at different levels (e.g.,
Bronze, Silver, Gold, Diamond, and Platinum).
 Assessment and Rating: MSMEs undergo assessment by
accredited agencies to identify gaps in their processes and
implement corrective actions.
 Financial Support: The government provides subsidies to
MSMEs for ZED certification and training.
 Capacity Building: Training programs and workshops are
conducted to educate MSMEs about ZED principles and best
practices.
 Technology Upgradation: Encourage the use of modern and
green technologies to improve production processes.
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IIMT Engineering College 127
Startup India
 Launched: January 16, 2016
 Objective: To promote entrepreneurship and support
startups by creating a robust ecosystem for innovation and
economic development.
 Key Features:
 Tax benefits for startups.
 Simplified compliance and regulatory support.
 Creation of incubation centers.
 Funding support through a dedicated ₹10,000 crore "Fund of
Funds."
 Facilitating intellectual property rights (IPR) protection and
fast-tracking patent applications
Stand Up India
 Launched: April 5, 2016
 Objective: To empower women and marginalized
groups (Scheduled Castes/Scheduled Tribes) by
facilitating loans for entrepreneurship.
 Key Features:
 Loans between ₹10 lakh and ₹1 crore for setting up new
enterprises.
 Target beneficiaries: One woman and one SC/ST
entrepreneur per bank branch.
 Focus on greenfield projects in manufacturing, services,
or trading sectors.
Make in India
 Launched: September 25, 2014
 Objective: To transform India into a global manufacturing
hub by encouraging companies to manufacture
domestically and enhance foreign direct investment (FDI).
 Key Features:
 Focus on 25 key sectors, including automobiles, textiles,
defense, and electronics.
 Streamlining regulatory processes and easing FDI norms.
 Creation of world-class infrastructure to support
manufacturing.
 Promotion of "Zero Defect, Zero Effect" (ensuring quality
manufacturing with minimal environmental impact).
Innovate in India
 Launched: 2017 under the Department of
Biotechnology (DBT).
 Objective: To foster innovation, especially in the
biotechnology and healthcare sectors, making India a
leader in global healthcare.
 Key Features:
 Support for cutting-edge research in biopharma,
vaccines, diagnostics, and medical devices.
 Public-private partnerships for innovation.
 Enhancing skill development in biotech and healthcare.
Lean manufacturing
 Lean Manufacturing is a systematic approach to
improving efficiency, reducing waste, and maximizing
value in the production process. It originated from the
Toyota Production System (TPS) and has since been
adopted globally across industries. The primary goal is
to deliver high-quality products to customers
efficiently by minimizing resources, time, and costs.
Key Principles of Lean Manufacturing
 Lean Manufacturing is guided by five core principles:
 Identify Value
 Define what the customer perceives as valuable in a product or service.
 Focus on features that customers are willing to pay for.
 Map the Value Stream
 Analyze every step in the production process to identify value-added and non-value-added
activities.
 Eliminate activities that do not contribute to customer value.
 Create Continuous Flow
 Ensure that the production process moves smoothly without interruptions or delays.
 Minimize bottlenecks and maintain consistency.
 Establish Pull
 Produce only what is demanded by customers, rather than creating surplus inventory.
 Use a "just-in-time" (JIT) system to align production with demand.
 Pursue Perfection
 Commit to continuous improvement (Kaizen) in all aspects of manufacturing.
 Involve employees at all levels to find ways to reduce waste and improve processes.
 Types of Waste in Lean Manufacturing
(TIMWOOD)
 Lean focuses on eliminating the 7 types of waste (muda):
 Transportation: Unnecessary movement of materials or
products.
 Inventory: Excess stock that ties up capital.
 Motion: Excessive movement by workers, machines, or
equipment.
 Waiting: Idle time when resources are not in use.
 Overproduction: Producing more than what is needed.
 Overprocessing: Doing more work or using more
resources than required.
 Defects: Errors that result in rework or scrap.
Lean Manufacturing Tools and Techniques
 5S: Organizing the workplace (Sort, Set in Order, Shine,
Standardize, Sustain).
 Kaizen: Continuous improvement involving all employees.
 Kanban: Visual workflow management to optimize
production.
 Value Stream Mapping (VSM): Mapping processes to
identify inefficiencies.
 Poka-Yoke: Mistake-proofing to prevent errors.
 JIT (Just-in-Time): Producing only what is needed when
it is needed.
 Takt Time: Aligning production speed with customer
demand.
Benefits of Lean Manufacturing
 Cost Efficiency: Reduced waste and optimized
resources.
 Improved Quality: Focus on error-free production.
 Customer Satisfaction: Deliver products on time and
tailored to customer needs.
 Employee Engagement: Encourages a culture of
collaboration and innovation.
 Flexibility: Quick response to market demands and
changes.
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IIMT Engineering College 127
Estimating Financial Requirements
 Estimating financial requirements is a critical step in business planning. It involves
assessing the amount of capital needed to start, run, or expand a business. Proper
estimation helps avoid underfunding or over-borrowing, ensuring efficient use of
resources. The process involves:
 Assessing Fixed Capital Needs:
 Purchase of land, buildings, machinery, and equipment.
 Initial setup costs.
 Estimating Working Capital Requirements:
 Day-to-day operational costs (inventory, wages, utilities, etc.).
 Accounts receivable and payable management.
 Considering Contingencies:
 Setting aside reserves for unforeseen circumstances or emergencies.
 Planning for Growth:
 Funds needed for expansion, R&D, marketing, or entering new markets.
 Time Frame:
 Short-term needs (1 year or less).
 Medium to long-term needs (more than 1 year).
Sources of Finance in India
 Indian businesses have several financing options, including banks and financial
institutions. Here’s an overview:
 1. Banks
 Public Sector Banks:
 Offer loans for working capital, term loans, and project financing.
 Lower interest rates and government-backed schemes (e.g., Mudra Loans for MSMEs).
 Examples: State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda.
 Private Sector Banks:
 Known for faster processing and better customer service.
 Examples: HDFC Bank, ICICI Bank, Axis Bank.
 Cooperative Banks:
 Provide financial assistance to rural and semi-urban areas.
 Suitable for small-scale businesses and agricultural financing.
 Specialized Schemes:
 Stand-Up India, PMEGP (Prime Minister’s Employment Generation Programme), and
others for startups, women entrepreneurs, and rural enterprises.
Financial Institutions
 Industrial Development Bank of India (IDBI):
 Offers term loans and project financing for industries.
 Small Industries Development Bank of India (SIDBI):
 Focuses on MSMEs by offering loans and venture capital support.
 National Bank for Agriculture and Rural Development
(NABARD):
 Provides credit for agriculture, rural development, and allied sectors.
 Indian Renewable Energy Development Agency (IREDA):
 Finances renewable energy and energy efficiency projects.
 Export-Import Bank of India (EXIM Bank):
 Supports export-oriented businesses through pre-shipment and post-
shipment credit.
 Non-Banking Financial Companies (NBFCs):
 Offer flexible financing options but often at higher interest rates.
 Examples: Bajaj Finserv, Tata Capital.
 Key Considerations When Choosing a
Source
 Nature of the Requirement: Is it short-term working
capital or long-term investment?
 Cost of Finance: Compare interest rates, fees, and
charges.
 Repayment Terms: Evaluate flexibility and penalties.
 Processing Time: Time taken for loan approval and
disbursement.
 Security/Collateral: Some sources may require assets
as collateral
Bootstrapping
 Definition: Starting and growing a business using
personal savings, reinvested earnings, or limited
external resources.
 Advantages:
 Retain full ownership and control.
 Encourages financial discipline and innovation.
 Challenges:
 Limited resources for scaling.
 Higher personal financial risk.
. Crowdfunding
 Definition: Raising small amounts of money from a large number of
people, typically via online platforms like Kickstarter, Indiegogo, or
GoFundMe.
 Types:
 Rewards-based: Backers receive products, perks, or services in return.
 Equity-based: Backers receive shares in the business.
 Debt-based: Backers lend money with the expectation of repayment.
 Advantages:
 Builds a community of early adopters and customers.
 Allows testing market interest in an idea.
 Challenges:
 Requires a compelling campaign to attract attention.
 Success isn’t guaranteed, and platforms may take a cut of the funds
raised.
Angel Investing
 Definition: Wealthy individuals (angel investors)
provide capital to startups in exchange for equity or
convertible debt.
 Advantages:
 Typically more flexible and accessible than venture
capital.
 Investors may offer valuable mentorship and networks.
 Challenges:
 Founders give up some ownership and control.
 Angels may expect a significant return on their
investment within a few years.
. Venture Capital (VC)
 Definition: Funding provided by venture capital firms to
startups with high growth potential, in exchange for equity.
 Stages:
 Seed funding: Early-stage capital to develop the idea.
 Series A/B/C funding: Larger rounds for scaling operations.
 Advantages:
 Access to large amounts of capital and strategic guidance.
 Often used to scale rapidly.
 Challenges:
 Founders give up significant equity.
 Venture capitalists may exert influence on company
decisions.
Initial Public Offering (IPO)
 Definition: The process of a private company selling
shares to the public for the first time to raise capital on the
stock market.
 Advantages:
 Access to substantial funding.
 Increased credibility and visibility.
 Liquidity for early investors and employees.
 Challenges:
 Expensive and complex process with significant regulatory
requirements.
 Public scrutiny and shareholder pressure.
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IIMT Engineering College 127
District Industries Centres (DICs)
 DICs were established to promote and support small-scale
and cottage industries at the district level.
Roles and Functions:
 Financial Assistance: Help entrepreneurs secure loans
and subsidies.
 Guidance and Training: Offer counseling on project
preparation, business operations, and market research.
 Support Services: Facilitate land, raw material, and
equipment procurement.
 Coordination: Serve as a liaison between the entrepreneur
and government schemes.
 Promotion: Encourage self-employment through
awareness programs.
Small Scale Industries (SSIs)
 SSIs (or now referred to as Micro, Small, and Medium
Enterprises, MSMEs) represent a sector that plays a significant
role in economic development.
Roles and Functions:
 Employment Generation: Create job opportunities with low
capital investment.
 Support to Entrepreneurs: Encourage entrepreneurship in
rural and semi-urban areas.
 Contribution to GDP: Increase industrial output and exports.
 Skill Development: Provide skill-based training programs
tailored to local industries.
 Resource Utilization: Promote efficient use of local resources.
 National Small Industries Corporation
(NSIC)
 NSIC is a government enterprise under the Ministry of MSME,
dedicated to supporting the growth of small industries.
Roles and Functions:
 Marketing Support: Assist in product promotion through
exhibitions, buyer-seller meets, and tenders.
 Credit Support: Provide financing for raw materials, working
capital, and machinery.
 Technical Services: Operate testing centers, technology
transfer, and incubation programs.
 Raw Material Assistance: Facilitate procurement of scarce and
bulk raw materials.
 Skill Development: Offer training for skill enhancement and
capacity building.
National Institute for Entrepreneurship and
Small Business Development (NIESBUD)
 NIESBUD focuses on entrepreneurship training and education.
Roles and Functions:
 Entrepreneurial Development: Provide training for aspiring
and existing entrepreneurs.
 Policy Support: Assist policymakers in developing strategies for
entrepreneurship promotion.
 Research and Development: Conduct studies and create
reports to enhance entrepreneurial practices.
 Capacity Building: Train trainers and develop entrepreneurship
curricula.
 International Cooperation: Collaborate with international
organizations for global best practices in entrepreneurship.
Entrepreneurship Development
Institute of India (EDII)
 The Entrepreneurship Development Institute of India (EDII) is an
autonomous organization established in 1983 in Ahmedabad, Gujarat,
with the mission to promote entrepreneurship through education,
research, training, and institutional support.
 Key Objectives of EDII
 Promote Entrepreneurship: Foster a culture of entrepreneurship
across diverse sectors.
 Capacity Building: Develop skilled entrepreneurs and intrapreneurs.
 Support MSMEs: Strengthen Micro, Small, and Medium Enterprises
through targeted initiatives.
 Policy Advocacy: Provide insights and recommendations for
entrepreneurial policy formulation.
 Global Outreach: Collaborate with international organizations to
promote entrepreneurship globally.
Major Activities of EDII
 Training and Education:
 Postgraduate Courses: Offers PGDM in Business Entrepreneurship and Development
Studies.
 Workshops and Short-Term Courses: Provides customized training for entrepreneurs,
corporate executives, and policymakers.
 Entrepreneurship Development Programs (EDPs):
 Implements structured programs to nurture entrepreneurial skills in potential and
existing entrepreneurs.
 Focuses on rural, women, and youth entrepreneurship.
 Research and Development:
 Conducts studies and surveys on entrepreneurship and MSME ecosystems.
 Develops innovative models and tools for entrepreneurial success.
 Support Services:
 Offers mentoring and consultancy for startups and SMEs.
 Provides business incubation facilities to foster innovation and new ventures.
 Collaborations and International Outreach:
 Partners with organizations like UNIDO, World Bank, and ILO to promote
entrepreneurship globally.
 Implements international programs in countries like Afghanistan, Ethiopia, and Myanmar.
 Policy Advocacy:
 Engages with governments to shape entrepreneurship-friendly policies and programs.
 Provides insights for schemes aimed at self-employment and enterprise development.
Notable Programs by EDII
 Women Entrepreneurship Development Program (WEDP):
Focused on empowering women entrepreneurs through skills
and knowledge development.
 Cluster Development Initiatives:
Supports MSME clusters by addressing their common
challenges, such as marketing, financing, and skill development.
 Rural Entrepreneurship Development Program (REDP):
Aims to uplift rural populations by enabling them to start and
sustain small enterprises.
 Startup Support Programs:
Provides incubation, mentoring, and funding support to startups
in emerging sectors.
State Startup Ranking (DPIIT)
 The State Startup Ranking Framework (2022) by the Department for
Promotion of Industry and Internal Trade (DPIIT) evaluates Indian states and
Union Territories (UTs) based on their efforts to foster robust startup
ecosystems. The rankings classify states into various categories:
 Best Performers: Gujarat, Karnataka, Kerala, Tamil Nadu (Category A), and
Himachal Pradesh (Category B).
 Top Performers: Maharashtra, Odisha, Punjab, Rajasthan, Telangana
(Category A), Arunachal Pradesh, and Meghalaya (Category B).
 Leaders: Andhra Pradesh, Assam, Madhya Pradesh, Uttar Pradesh,
Uttarakhand, Goa (Category B), Manipur, and Tripura.
 Aspiring Leaders: Bihar, Haryana, Andaman & Nicobar Islands, and
Nagaland.
 Emerging Startup Ecosystems: Delhi, Chhattisgarh, Jammu & Kashmir,
Chandigarh, Ladakh, Mizoram, Puducherry, Sikkim, and others.
State Innovation Ranking by NITI Aayog
 The India Innovation Index, published by NITI Aayog, evaluates states and Union
Territories (UTs) based on their innovation ecosystem. The index categorizes regions into
three groups: major states, northeast and hill states, and UTs/city states. It considers
parameters like human capital, investment, business environment, knowledge workers,
and output.
 Key Highlights (2020 Edition):
 Major States:
 Karnataka ranked first for its robust performance in innovation-related policies, scoring
42.50.
 Tamil Nadu and Maharashtra followed in second and third positions, respectively.
 Northeast and Hill States:
 Himachal Pradesh led this category, showcasing significant improvements in innovation
infrastructure.
 Uttarakhand and Manipur were next in rankings.
 Union Territories/City States:
 Delhi topped, thanks to its strong knowledge and creative outputs.
 Chandigarh secured the second spot.
Thank You