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Gujarat best state to do business in India, Delhi ranks 15th

New Delhi: PM Narendra Modi's home state Gujarat has ranked at the top of an evaluation of state implementation of business reforms  according to a report published by World Bank.In other words, Gujarat tops in
India TV News Desk September 14, 2015 20:54 IST
India TV News Desk

New Delhi: PM Narendra Modi's home state Gujarat has ranked at the top of an evaluation of state implementation of business reforms  according to a report published by World Bank.In other words, Gujarat tops in the ease of doing business ranking.

Andhra Pradesh, Jharkhand, Chhattisgarh and Madhya Pradesh are the remaining states in the top five.

According to the report Gujarat emerged as number 1 state in ease of doing business with 71.14% followed by Andhra Pradesh with 70.12%. Jharkhand, Chhattisgarh and Madhya Pradesh emerged as top 5 states along with Andhra Pradesh and Gujarat in ease of doing business which is basically an asessment of business reforms sponsored by the Department of Industry Policy and Promotion (DIPP).

Arunachal Pradesh is ranked lowest with just 1.23%.

The states were judged on implementation of a 98-point Action Plan that included parameters such as setting up of business, allotment of land, taxation, etc.

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

The exercise is aimed at promoting competition among states with a view to improve business climate to attract domestic as well as foreign investments.  The move would also help in improving India's overall ranking in the global Doing Business Study.

India has been placed at 142nd position among 182 nations.  Overall, World Bank said India is a difficult place to do business and concerted action and reforms are needed on several fronts to improve its ranking in the global ‘Doing Business Index'.

“The assessment recognises the fact that most states have already embarked on ambitious reform programmes or expanded their ongoing reform efforts,” Additional Secretary in DIPP, Shatrughna Singh said.

The ranking of 32 states and union territories was based on eight specified parameters which include setting up of business, allotment of land, labour reforms and procedure for environmental clearance.

The parameters also include infrastructure, procedure for registration for tax purposes and inspections for compliance of various norms.

At the bottom of the ladder in the index were Mizoram, Jammu and Kashmir, Meghalaya, Nagaland and Arunachal Pradesh.  “What this report does very well is to provide a roadmap for states serious about improving their business environment and creating jobs,” World Bank country director Onno Ruhl said.

Among major states, West Bengal occupied the 11th slot, Tamil Nadu (12th), Haryana (14th), Delhi (15th), Punjab (16th), Himachal Pradesh (17th), Kerala (18th), Goa (19th), Bihar (21st) and Assam (22nd).

Pitching for further ease of doing business, Ruhl said a disproportionately high regulatory burden is borne by businesses in India today.

Besides, DIPP Additional Secretary Shatrughna Singh said the preparation of this report is just a tiny part of the gigantic effort that “we need to make in unwinding a maze of procedures, rules, regulations and laws that we have put in place in India.“... we need to vigorously pursue reforms in the future,” he added.

The assessment, the first-of-its-kind, has been conducted to take stock of reforms implemented by states in the period January 1 to June 30 based on the 98-point action plan for business reforms agreed between DIPP and the state and union territory governments on December 29, 2014. 

According to the report, Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh, Odisha and Rajasthan have implemented over 50 per cent of the 98 point action plan business reforms studied in the assessment.  

No state has implemented 75 per cent or more of the proposed reforms, an official statement said.  The assessment has identified good practices on different parameters.

For example, Punjab leads in the area of ‘Setting up a Business', as it features an online single window system for registrations and licences that cover most of the regulatory services in the country.

Maharashtra, followed by Gujarat and Madhya Pradesh, was ranked highest in ‘Obtaining Infrastructure Related Utilities', with clearly defined timelines for electricity, water and sewage connections.

Across the country, the report said, states have made good progress in general tax reforms like mandating e-registration for VAT and CST, allowing online payment and filing of returns for various state taxes, providing e-filing support through service centres and helplines.

( With PTI inputs)