Best States Rankings 2026: States that are Taking the Lead in Nurturing Start-Ups

Skewed Funding

Growth-stage funding is more evenly spread in Maharashtra, Karnataka and Haryana. In contrast, while oveall funding levels are high in states like Uttar Pradesh, Gujarat and Tamil Nadu, the capital is concentrated in far fewer start-ups. However, funding remains highly skewed towards select cities rather than being geographically diverse. For instance, start-ups in Mumbai account for over 82% of total funding in Maharashtra, while Gurgaon attracts about 92% of Haryana’s funding

Capital Returns

This year, growth-stage start-ups in Maharashtra, Haryana and Telangana overtook Karnataka in revenue generation

Regional Disparity

The western and southern regions have a clear advantage over their northern and eastern counterparts in terms of growth-stage funding. The disparity across regions has widened compared to last year

Getting the Priorities Right

States like Maharashtra, Tamil Nadu and Karnataka have outperformed by making sustained investments in research capabilities and entrepreneurial support

Job Creators

Though smaller in scale than traditional industries, growth-stage start-ups are creating high-skilled jobs, easing the burden on state governments

For an Inclusive Growth

The western and southern regions, which are home to India's most attractive start-up hubs, perform poorly on sustainability and inclusion