Andhra, Telangana topple Gujarat in ease of doing business

Mail Today Bureau   New Delhi     Last Updated: November 1, 2016  | 15:37 IST
AP and Telangana top in ease of biz
AP and Telangana top in ease of biz

Andhra Pradesh and Telangana emerged as joint toppers in the ease of doing business, relegating Gujarat from the first spot to the third position, according to rankings by the department if industrial policy and promotion and the World Bank released on Monday.
Telangana and Andhra ended the closely-contested contest with a score of 98.78 per cent on the 340 parameters that states were ranked on. In 2015 Index, Gujarat had featured at the top, with Andhra Pradesh at the second position and Telangana 13th.

Chattisgarh retained its fourth position in 2016 and was followed by Madhya Pradesh, Haryana, Jharkhand, Rajasthan, Uttarakhand and Maharashtra. These states were classified as leaders in by the report based on implementation of DIPP's 340-point Business Reform Action Plan.

Among other major states, Odisha occupied 11th slot, followed by Punjab, Karnataka, Uttar Pradesh, West Bengal and Bihar which were classified as "aspiring leaders'' Himachal Pradesh, Tamil Nadu and Delhi which ranked lower were identified as states where acceleration is required.

States are really competing with each other. Healthy competition is happening among all the states. Everybody is monitoring everybody's performance, Commerce and Industry Minister Nirmala Sitharaman said while releasing the report.

There is a long way to go, she said, adding that this time 15 states have implemented reforms suggested by the ministry as compared to seven last year. Interestingly, eight out of top 10 states are ruled by BJP-led NDA. While Telengana is ruled by TRS, Uttarakhand has a Congress government.

The business reform action plan for states and UTs includes reforms on 58 regulatory processes, policies, practices, or procedures spread across 10 reform areas spanning the lifecycle of a typical business. These are mainly single window clearance, tax reforms, labour and environment reforms, dispute resolution and construction permit.

She however said that more efforts are needed to encourage states like Jammu and Kashmir (at 31st) and other north-eastern regions to improve their business climate. Nagaland, Manipur, Mizoram and Sikkim stand at 26th, 28th, 29th and 30th position.

These rankings were provided in the report titled 'Assessment of State Implementation of Business Reforms 2016' which was prepared by World Bank in association with the Department of Industrial Policy and Promotion (DIPP).

The exercise is aimed at promoting competition among states with a view to improve business climate to attract domestic as well as foreign investments. In the World Bank's latest 'Doing Business' report, India's place remained unchanged from last year's original ranking of 130 among the 190 economies.

DIPP Secretary Ramesh Abhishek said for the next year's ranking, "we plan to have a round of consultations with states and other stakeholders. There will be a workshop and stakeholder consultation during this month and then we decide the action plan for next year's ranking,'' he added.

Asked whether the World Bank would consider modifications in its methodology to take into account the ground realities in large countries like India, the banks Country Director for India Junaid Ahmad said: Absolutely, we would like to see how our methodology can constantly being improved by the experience of different countries.

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