Ease Of Doing Business In India 2015

Gujarat tops ease of doing business ranking, Arunachal Pradesh last-LiveMint

Andhra Pradesh, Jharkhand, Chhattisgarh and Madhya Pradesh also in top 5 in the ease of doing business ranking

 

New Delhi: Prime Minister Narendra Modi’s home state Gujarat has topped an official ranking of states measured for how successful they have been in rolling out regulatory reforms to facilitate the ease of doing business—a key priority in the federal government’s effort to promote manufacturing.

Gujarat is followed in the top five spots by Andhra Pradesh, Jharkhand, Chhattisgarh and Madhya Pradesh. The last three states, like Gujarat, are ruled by Modi’s Bharatiya Janata Party, while Andhra Pradesh is governed by the Telugu Desam Party, an ally of the BJP.

Poll-bound Bihar is placed 21st and Arunachal Pradesh took bottom place in the survey sponsored by the department of industrial policy and promotion (DIPP). The World Bank and consulting firm KPMG were associated with the survey.

The DIPP listed eight areas in which states were ranked: setting up a business, allotment of land and obtaining construction permits, complying with environmental procedures, complying with labour regulations, obtaining infrastructure-related utilities, registering and complying with tax procedures, carrying out inspections, and enforcing contracts.

Among these eight parameters, Gujarat topped the category of complying with environmental procedures and stood second in four.

The study said that while the implementation of 98 suggested reforms by states was encouraging, no one was able to score an overall implementation status of 75% to take the so-called leader status. Instead, seven states—Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh, Odisha and Rajasthan—that scored between 50 and 75% were accorded the aspiring leaders title.

Punjab leads in the area of setting up a business, as it offers an online single-window system for registrations and licences that cover most of the regulatory services in the country. Maharashtra was ranked highest in obtaining infrastructure-related utilities, with clearly defined timelines for electricity, water and sewage connections, and a reformed electricity connection application process.
Karnataka received the highest score on registering and complying with tax procedures due to its comprehensive automation and process re-engineering efforts. Jharkhand led the field in carrying out inspections, since its labour management system implementation has also focused on inspections reform.

However, the report also flags a multitude of reforms that still need to be implemented effectively by most states. For instance, a majority of states are yet to offer electronic courts to resolve commercial disputes, including infrastructure to allow for electronic filing of disputes, issuance of electronic summons, online payments, electronic cause lists and digitally signed court orders.

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Twenty-six states are yet to introduce reforms on a wide range of labour inspections under various Acts, or on inspections related to building permits. About 25 states lack online availability of information on land banks, and use of geographical information systems (GIS) to track industrial land parcels.

Attempts to lighten the regulatory burden on business at the state level are an important component of Modi’s flagship programmes Make in India and Ease of Doing Business in India, and prompted the DIPP exercise. On 8 June, the department released a framework to assess and rank states in terms of ease of doing business on 98 parameters.

Its aim was to assess various factors enabling the ease of doing business in each state, and to make comparisons. The move is also expected to encourage states to carry out reforms in areas such as land acquisition and labour laws, where the Modi-led Union government has found it difficult to make legislative headway.

This assessment, the first of its kind, was conducted to take stock of reforms implemented by states between 1 January and 30 June 2015. Questionnaires were sent to states in June and after receiving the responses, consultants from KPMG visited states to check on the reported reforms. In August, the World Bank and KPMG reviewed the database to ensure robustness and veracity.

N. Chandrababu Naidu, Andhra Pradesh chief minister, tweeted: “Delighted to announce that Andhra Pradesh has been ranked 2nd in India on ‘Ease of Doing Business’.... We’re making an impact.”
“We are now targeting the number one position. We will soon make it to the list of ‘leaders’ category by falling in the 76-98 point score card,” Naidu said.

Rajasthan chief minister Vasundhara Raje said the ranking was a defining moment for her state, which ranked sixth. “We owe it to our youth to make Rajasthan a fertile habitat for job creation. This ranking is just a down payment for this long journey. We are only in the first phase of a multi-year strategic plan to make Rajasthan a job magnet,” she added.
Gujarat’s health and urban development minister Shankar Chaudhary tweeted: “Good governance reflected once again.”

Arindam Guha, senior director at Deloitte Haskins and Sells Llp in India, said that with this assessment proposed to be an annual exercise, all states were expected to try and improve their scores and ranking, which would promote competitive federalism and attract private investment since a study of this nature is likely to influence investor perception.

“However, in addition to the ease of doing business ranking, the other factors which will be equally important in attracting investments to states will be their mineral resources, existence of an urban-industrial ecosystem, infrastructure connectivity in terms of roads, ports, airports etc. which are not captured in the current study,” he added. 


Economy Rankings Economies are ranked on their ease of doing business, from 1–189. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm. The rankings are determined by sorting the aggregate distance to frontier scores on 10 topics, each consisting of several indicators, giving equal weight to each topic. The rankings for all economies are benchmarked to June 2014.

http://www.doingbusiness.org/rankings

Economy	Ease of Doing Business Rank ▲	Filtered Rank	Starting a Business	Dealing with Construction Permits	Getting Electricity	Registering Property	Getting Credit	Protecting Minority Investors	Paying Taxes	Trading Across Borders	Enforcing Contracts	Resolving Insolvency
Georgia	15	1	2	1	7	1	1	5	2	2	1	24
Armenia	45	2	1	19	29	3	8	7	3	22	28	3
Moldova	63	3	6	47	39	4	5	9	11	37	5	2
Samoa	67	4	5	11	4	11	38	13	18	12	17	26
Ghana	70	5	19	23	12	8	8	9	20	26	22	40
Morocco	71	6	10	9	17	29	26	26	10	1	15	20
Mongolia	72	7	7	16	35	5	15	2	15	45	2	12
Guatemala	73	8	21	27	3	16	3	45	6	19	33	37
Kosovo	75	9	7	33	22	7	5	11	9	25	30	42
Vanuatu	76	10	34	18	23	23	8	28	4	24	14	16
Vietnam	78	11	29	2	31	6	8	24	43	10	7	17
Solomon Islands	87	12	18	3	8	43	18	16	8	15	34	30
Paraguay	92	13	30	7	9	14	18	40	24	35	20	18
Philippines	95	14	44	28	2	27	26	34	29	5	29	1
Ukraine	96	15	14	15	49	13	4	22	21	38	6	33
Sri Lanka	99	16	23	12	19	35	24	8	37	6	41	5
Kyrgyz Republic	102	17	3	6	43	2	8	4	32	48	8	39
Honduras	104	18	35	22	21	19	1	45	35	7	42	31
El Salvador	109	19	27	40	36	12	18	34	39	8	16	9
Swaziland	110	20	38	10	34	33	15	23	12	29	45	10
Zambia	111	21	12	20	26	41	5	15	14	46	23	13
Egypt, Arab Rep.	112	22	13	35	20	20	18	28	34	17	36	27
Indonesia *	114	23	42	39	15	30	18	5	38	4	44	6
Nicaragua	119	24	26	32	18	36	24	43	41	9	10	19
Cabo Verde	122	25	15	25	30	15	26	42	17	18	4	43
Guyana	123	26	22	5	40	26	42	28	26	14	11	35
Bhutan	125	27	17	31	13	22	18	20	16	44	13	43
Lesotho	128	28	24	42	24	24	38	21	22	34	27	23
Pakistan *	128	29	25	29	38	28	35	3	42	21	38	8
Papua New Guinea	133	30	32	34	5	21	42	17	23	32	48	32
Kiribati	134	31	28	13	42	37	40	34	1	13	9	43
Yemen, Rep.	137	32	37	14	25	9	49	38	31	31	18	36
Uzbekistan	141	33	11	37	37	39	26	18	28	50	3	7
India *	142	34	43	49	33	31	8	1	36	28	49	29
West Bank and Gaza	143	35	45	46	16	25	31	31	5	30	25	43
Micronesia, Fed. Sts.	145	36	39	4	6	49	15	50	25	20	39	22
Côte d'Ivoire	147	37	9	48	41	32	35	32	44	40	12	11
Lao PDR	148	38	41	24	28	18	31	48	30	39	24	43
São Tomé and Príncipe	153	39	4	8	11	40	49	49	40	23	47	41
Djibouti	155	40	46	36	46	42	48	38	13	3	43	4
Bolivia	157	41	49	30	27	34	31	37	50	27	26	14
Cameroon	158	42	33	43	10	46	31	24	46	42	37	25
Sudan	160	43	36	41	32	10	42	45	33	43	40	38
Senegal	161	44	16	38	48	44	35	26	48	11	32	15
Nigeria *	170	45	31	45	50	48	14	11	45	41	31	28
Timor-Leste	172	46	19	26	1	49	40	18	7	16	50	43
Syrian Arab Republic	175	47	40	50	14	38	42	14	27	33	46	34
Mauritania	176	48	47	17	44	17	46	40	49	36	19	43
Congo, Rep.	178	49	48	21	45	45	26	32	47	47	35	21
South Sudan	186	50	50	44	47	47	46	44	19	49	21	43

Note: The rankings of economies with populations over 100 million (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) are based on data for 2 cities.