Delhi is now most in­vestor-friendly: sur­vey

Na­tional cap­i­tal re­places Gujarat as most in­vestor-friendly state, while Andhra tops the list in the busi­ness re­forms ac­tion plan

Mint Asia ST - - News - BAY SIT R ANJAN M ISHRA

Delhi moved one spot up to re­place Gujarat as the most in­vestor-friendly state in the lat­est Na­tional Coun­cil of Ap­plied Eco­nomic Re­search (NCAER) State In­vest­ment Po­ten­tial In­dex (N-SIPI).

Andhra Pradesh topped the list in the busi­ness re­forms ac­tion plan rank­ing re­leased by the de­part­ment of in­dus­trial pol­icy and pro­mo­tion last month.

N-SIPI 2018, which was re­leased by Delhi-based think tank NCAER on Fri­day, 3 Au­gust, has been con­structed on the ba­sis of six pil­lars that are clas­si­fied un­der the fol­low­ing four broad cat­e­gories—fac­tor­driven (land and labour), ef­fi­ciency-driven (in­fra­struc­ture), growth-driven (eco­nomic cli­mate, and po­lit­i­cal sta­bil­ity and gov­er­nance), and per­cep­tions driven (re­sponses to the sur­veys). Each of the pil­lars is, in turn, based on a num­ber of sub-pil­lars, rang­ing from four in the case of land to 11 for in­fra­struc­ture.

N-SIPI 2018 also in­cor­po­rates the re­sults of an ex­ten­sive sur­vey con­ducted in May and June 2018, cov­er­ing 1,049 in­dus­trial units across 20 ma­jor states and the Union ter­ri­tory of Delhi.

The per­cep­tions-based sur­vey helps as­sess the ground level im­pact of var­i­ous re­forms. The find­ings of the sur­vey show that Gujarat has re­tained the top spot, with Haryana and West Ben­gal oc­cu­py­ing the se­cond and third places, re­spec­tively. West Ben­gal par­tic­u­larly has shown tremen­dous im­prove­ment by mov­ing up 18 places from the 21st to the third spot.

Ut­tarak­hand, too, has made sig­nif­i­cant im­prove­ment by mov­ing up 10 places in the per­cep­tion-based rank­ings, while Te­lan­gana and Andhra Pradesh slipped 17 and 15 places, re­spec­tively. The states at the bot­tom with re­gard to the per­cep­tions sur­vey are Kar­nataka, Te­lan­gana and Ma­ha­rash­tra. In over­all rank­ing, Tamil Nadu has moved up sig­nif­i­cantly and is placed at num­ber two, even as the erst­while num­ber three, Andhra Pradesh, has slipped to the num­ber seven po­si­tion. At the other end, Bi­har and Ut­tar Pradesh con­tinue to be at the bot­tom of the league tables—po­si­tions they oc­cu­pied in N-SIPI 2016 and 2017 as well.

The sur­vey gives in­ter­est­ing in­sights. Bi­har and Kar­nataka face se­ri­ous chal­lenges in the pro­cure­ment of land, while Te­lan­gana, Mad­hya Pradesh and Tamil Nadu are ranked as the top states for get­ting land. In terms of labour, Gujarat and Haryana are per­ceived to be the best states, whereas Jhark­hand, Kar­nataka, As­sam and Ma­ha­rash­tra are lag­ging be­hind. Ch­hat­tis­garh, Pun­jab, Haryana and Kar­nataka are do­ing well in In over­all rank­ing, Tamil Nadu has moved up sig­nif­i­cantly and is placed at num­ber two, even as the erst­while num­ber three, Andhra Pradesh, has slipped to the num­ber seven po­si­tion terms of the avail­abil­ity of power sup­ply.

As re­gards the pil­lar on “eco­nomic cli­mate”, both Delhi and Gujarat have re­tained their po­si­tions among the top three states, whereas Te­lan­gana has moved up four places to the se­cond spot.

On the in­fra­struc­ture pil­lar, Delhi tops the rank­ing fol­lowed by Pun­jab and Ma­ha­rash­tra, At the other end, Bi­har and Ut­tar Pradesh con­tinue to be at the bot­tom of the league tables—po­si­tions they oc­cu­pied in N-SIPI 2016 and 2017 as well The per­cep­tions-based sur­vey helps as­sess the ground-level im­pact of var­i­ous re­forms. The states at the bot­tom with re­gard to the per­cep­tions sur­vey are Kar­nataka, Te­lan­gana and

Bi­har and Ut­tar Pradesh con­tinue to be at the bot­tom of the State In­vest­ment Po­ten­tial In­dex

Ma­ha­rash­tra while Bi­har, Jhark­hand and Ut­tar Pradesh have been iden­ti­fied as the states with least in­fra­struc­ture.

When it comes to gov­er­nance or po­lit­i­cal sta­bil­ity, Tamil Nadu, Haryana and Pun­jab oc­cupy the top three spots, while Hi­machal Pradesh, Bi­har and Ut­tar Pradesh are ranked at the bot­tom.

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