South­ern States top ease of do­ing busi­ness rank­ings

Auto components India - - COVER STORY - ACI

The ease of do­ing busi­ness state rank­ings, jointly pre­pared by the World Bank and the Depart­ment of In­dus­trial Pol­icy and Pro­mo­tion (DIPP, have placed Andhra Pradesh, Te­lan­gana and Kar­nataka among the Top Achiev­ers. Tamil Nadu is among the Achiev­ers, while Ker­ala is placed among the Aspir­ers. In the rank­ings Andhra Pradesh is at the top, fol­lowed by Te­lan­gana in the sec­ond and Haryana in the third.

The fi­nal rank­ings were ar­rived at after a com­bi­na­tion of “re­form ev­i­dence score” and “feed­back score”. The high­lights were the states of Jhark­hand and Te­lan­gana who scored 100% in their re­form ev­i­dence scores. Jhark­hand, which is home to sev­eral steel plants, coal and iron ore mines, clocked 100% in the “re­form ev­i­dence score­card”.

The “re­form ev­i­dence score” is al­lot­ted on the ba­sis of 372 rec­om­men­da­tions for re­forms on reg­u­la­tory pro­cesses, poli­cies, prac­tices and pro­ce­dures spread across 12 re­form ar­eas. In this year’s edi­tion of rank­ings, DIPP car­ried out a com­pre­hen­sive busi­ness-to-gov­ern­ment (B2G) feed­back ex­er­cise, where feed­back was taken from busi­nesses on the qual­ity of im­ple­men­ta­tion of the re­forms claimed by the states. Te­lan­gana dropped to the sec­ond spot after top­ping the rank­ings last year.

The idea be­hind rank­ing states is to in­duce com­pe­ti­tion to at­tract in­vest­ment and im­prove the busi­ness cli­mate. In ad­di­tion, th­ese rank­ings in­di­cate that the states have the po­ten­tial to at­tract busi­ness and un­der­take var­i­ous re­forms that are be­ing un­der­taken by the Cen­tre. In 2016, Te­lan­gana and Andhra Pradesh jointly emerged as num­ber one states to do busi­ness, ahead of Gu­jarat that was num­ber one in 2015.

Ma­ha­rash­tra, said to be In­dia’s most in­dus­tri­alised state, ranked 13th with a re­form ev­i­dence score of 97.29% and a “feed­back score” of 50.29%. De­spite be­ing a ma­jor in­dus­trial hub, Tamil Nadu was placed 15th with a “re­form ev­i­dence score” of 95.93% and a feed­back score of 43.90%. Both the states were listed as achiev­ers in the rank­ing.

The na­tional cap­i­tal Delhi’s score de­clined to 33.99%, from 47% in 2016 and it stood at the 23rd spot in this year’s rank­ings. North­east­ern states, ex­cept As­sam, con­tinue to re­main at the bot­tom, un­der­lin­ing the need for strate­gic pol­icy in­ter­ven­tions to turn th­ese states into busi­ness-friendly des­ti­na­tions. The Pa­ram­e­ters on which the states and UTs were ranked in­cluded re­forms they have un­der­taken and the feed­back from the gov­ern­ment about the mea­sures they have in­cor­po­rated in their poli­cies. The list cat­e­gorised In­dia’s 34 states and UTs into 4 cat­e­gories - ‘Top achiev­ers’, with a score of over 95% (9 states), ‘achiev­ers’ with a score be­tween 90-95% (6 states), ‘fast movers’ which had scored be­tween 80-90% ( 3 states ), and those with a score be­low 80% in the ‘aspir­ers’ cat­e­gory (18 states and UTs).

The move is aimed at trig­ger­ing com­pe­ti­tion among states to at­tract in­vest­ments and im­prove busi­ness cli­mate. The min­istry will re­lease of rank­ing of states and UTs un­der the busi­ness re­form ac­tion plan 2017, an of­fi­cial said.

State gov­ern­ments are tak­ing sev­eral steps such as set­ting up of sin­gle win­dow sys­tem for ap­provals to im­prove ease of do­ing busi­ness. In the last Bud­get, the gov­ern­ment had iden­ti­fied 372 ac­tion points for states which they would carry out in a mis­sion mode.

In the lat­est Do­ing Busi­ness re­port of the World Bank, In­dia’s rank im­proved by a num­ber of notches to 100 among 190 na­tions. The gov­ern­ment wants to be among top 50 coun­tries in the over­all ease of do­ing busi­ness rank­ings re­leased by the World Bank.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.