New Delhi, Jan 11 (KNN) The Department of Industrial Policy and Promotion (DIPP) has sought views of various stakeholders on its draft methodology to rank states and union territories this year on the basis of measures being taken by them to promote startups.

"We have drafted the methodology for states startup ranking 2019 with suggested pillars, action points and proposed weight for feedback. DIPP is seeking inputs on the proposed methodology," said a tweet by Startup India.

The government launched Startup India Action Plan in January to promote budding entrepreneurs in the country.

The plan aims to give incentives such as tax holiday and capital gains tax exemption.

The six pillars over which the department wants to rank states include awareness and outreach; easing public procurement; angel and venture funding support; seed funding support; incubation centres; and institutional support.

Under these six pillars, there are 28 action points suggested in the draft.

These points include clear definition of startups, support from various departments, and special incentives for women entrepreneurs, online systems, startup registration process, mentor network, R&D facilities, and systems to avail funds.

About 22 states have so far formulated their respective startup policies.

Three union territories and a total of 27 states participated in the last year's ranking exercise.

Gujarat has emerged as the best performer in developing startup ecosystem for budding entrepreneurs, in the last ranking announced in December 2018.

Last year, the ranking framework covers seven areas of intervention and 38 action points, including policy support, incubation centres, seed funding, angel and venture funding and easier regulations.