Gujarat, which has been named the “Best Performer” state in the start-up rating for three years running as of 2019, has performed poorly when it comes to the job market. Given that just 51,193 people are employed by start-ups, the state ranks sixth in terms of employment. Startups in Gujarat create 2.8 times less jobs than they do in Maharashtra, a neighbouring state.
7.67 lakh people were employed as of June 30 by start-ups recognised by the Department of Promotion of Industry and Internal Trade (DPIIT), according to data provided by the Central government during the current monsoon session of the Lok Sabha. Gujarat barely makes up 6.66 percent of this total, trailing Maharashtra, Karnataka, Delhi, and Uttar Pradesh.
According to information presented by Rajeev Chandrasekhar, Minister of State for Skill Development and Entrepreneurship, in answer to a query on tax breaks for start-ups, Maharashtra has the highest employment rate, at 19%, with 1,46,132 people employed there. Delhi comes in second with 87,643 jobs, followed by Uttar Pradesh with 67,694 jobs, and Karnataka with 1,03,541 jobs.
There are about 8,450 start-ups, 180 or so incubators, and more than 325 mentors in the state, according to Gujarat Start-up Cell, which is part of the state government’s Industries Commissionerate.
Gujarat was named the “best performer” in the DPIIT Start-up Rankings in July for the third time in a row. Despite Gujarat’s success in seven key reform areas—institutional support, promoting innovation and entrepreneurship, market access, incubator assistance, financial support, mentoring support, and capacity building of enablers—the state struggles to fill positions in this industry.
According to business analysts, Gujarat’s low base in information technology and technology, as well as the low number of start-ups in these industries, are negatively harming employment creation.
“Gujarat is losing out when it comes to IT start-ups. In comparison to some of the other states, our technical foundation is lacking. Numerous intelligent, young individuals with solid technological backgrounds frequently launch new businesses abroad in the fields of artificial intelligence (AI), nanotechnology, biotechnology, and other related fields. According to Sunil Parekh, co-chair of the Federation of Indian Chambers of Commerce and Industry (FICCI), Gujarat, “these new technical businesses tend to employ more people than those in manufacturing where Gujarat leads.”
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