Institutional Environment Differences Across the Indian States for Entrepreneurial Development

There is a shortage of evidences and literatures regarding institutional environment differences across the states of India. Therefore, the paper attempts to provide some important sub-national environment differences across the Indian states in the context of entrepreneurship. It focuses on the security, opportunity and availability differences across the states of India and finds a significant potential differences across the states which may result the different level of entrepreneurship development in India among its states. Moreover, while the composite index (Index of Institutional Quality) gives an overview of the institutional environment of the states in the context of entrepreneurship, it is observed that a state which performs extremely well in certain indicators, its performances is not satisfactory in others. It is found that among the weaker and poor institutional quality states the problem is in all sectors, but the priority sectors are availability and security rather than opportunity. Any generalization about India as a whole may have misleading information and conclusions. India is a combination of states with better Institutional environment and quality which can attract investment as well as the states where the problems are worrisome. There are also certain states which experience imbalances among the various institutional factors. The interstate variation is significant and policymakers should consider these potential differences