India has ranked among the most challenging countries in which to launch a start-up, according to a study by artificial intelligence (AI) website Business Name Generator (BNG). The global start-up index was determined by analysing 50 countries on the basis of criteria such as business tax rates, GDP growth, and the cost of start-up procedures. Other factors such as population, average monthly salary, gross domestic product (GDP) and GDP per capita, happiness score, cost of living and quality of life were also considered.

The Czech Republic emerged as the best country to launch a start-up, followed by Finland and Sweden, while India was ranked third from the bottom. The report said India’s 30 per cent business tax rate could offset savings gained from low labour costs. The Philippines was rated the most challenging country in which to launch a start-up because of the high cost of starting a business, which is 23.3 per cent of GNI per capita.

Despite India's low ranking in this study, Invest India shows that India is the third largest ecosystem for start-ups globally, with over 77,000 start-ups. 

The country has seen a 15-fold increase in funding of start-ups, a nine-fold increase in the number of investors, and a seven-fold increase in the number of incubators between 2015 and 2022. Additionally, India is home to 107 unicorns, with a total valuation of $340.79 billion.

The study found the top ten countries to launch a start-up in 2023 were all Europeans with the Czech Republic emerging as the number one country.

Finland, Sweden, Estonia, and Slovakia made up the top five in that order. The study revealed that the five most challenging countries to produce a successful start-up were all in Asia, except for the Philippines, which was at the bottom of the list. South Korea and India were ranked fourth and third from the bottom respectively.

The study also revealed that the United States (US), which produces the largest number of start-ups globally, was placed 17th because of its low GDP economic growth rate of 1.6 per cent, the third lowest overall. Business tax rates which differ by state are also relatively high, with an average rate of 25.8 per cent. Despite this, the study highlighted that the US remains a popular destination for entrepreneurs due to its large market, well-developed infrastructure and supportive legal system for protecting intellectual property.

(With ANI Inputs)