N Chandrababu Naidu’s Andhra Pradesh and K Chandrashekar Rao’s Telangana have topped the World Bank’s ‘Ease of Doing Business in India’ rankings. Andhra Pradesh and Telangana have edged out PM Narendra Modi’s Gujarat, to top the rankings. Gujarat, which was number 1 last year, has fallen to the number 3 slot. The rankings are a joint initiative of the DIPP (Department of Industrial Policy and Promotion) and the World Bank. Andhra Pradesh and Telangana scored 98.78%! The states were ranked on 340 parameters.
DIPP has a 340-point Business Reform Action Plan, on the basis of which the states are ranked. This includes; reforms on 58 regulatory processes, policies, practices, or procedures spread across 10 reform areas spanning the life cycle of a typical business. The main reforms encompass single window clearance, tax reforms, labour and environment reforms, dispute resolution and construction permit. While Andhra Pradesh had ranked 2nd in last year’s rankings, the rise of Telangana from 13th position to the 1st is nothing short of exceptional.
Lauding states for competing with each other for more investments, Commerce Minister Nirmala Sitharaman said, “I am happy to share that states had a healthy competition for investments. This year 15 states have implemented more than 75% of recommended reforms.” “Telangana and Haryana are now among top 10 states with 97.29% reforms implemented,” she said, adding that DIPP will work closely with North-Eastern states to implement reforms.
At a country level, Prime Minister Narendra Modi wants India to break into the top 50 easiest countries to do business in. Disappointingly, however, in the recently released World Bank rankings, India is at 130. This is an improvement of only one rank compared to last year’s 131. The Modi government, which has been pitching itself as investor friendly, now faces an uphill task of implementing key reforms to ease woes faced by businesses in India.