Ease of Doing Business: From zero to hero, how these two BJP-ruled states left Delhi behind

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Published: November 2, 2017 12:55:55 PM

While World Bank took into consideration only Delhi and Mumbai, the government in partnership with the former keeps a real-time data of all Indian states and union territories to track their performance on ease of doing business.

Ease of Doing Business: Uttar Pradesh and Uttarakhand, which began from zero score, made a huge jump and left national capital Delhi behind.

India on Tuesday made it top 100 countries in World Bank’s Ease of Doing Business index by implementing 37 reforms which made it jump 30 ranks from previous year’s 130 for the first time. While World Bank took into consideration only Delhi and Mumbai, the government in partnership with the former keeps a real-time data of all Indian states to track their performance on ease of doing business, and both Uttar Pradesh and Uttarakhand, which began from zero score, made a huge jump and left national capital Delhi behind.

According to the real-time score, given on the basis of 340-Point Business Reform Action Plan (BRAP), Uttar Pradesh and Uttarakhand are at 12.37% and 11.56%, higher than Delhi which is at 10.44%. What is noteworthy here is that both Uttar Pradesh and Uttarakhand were at zero in April this year, while Delhi’s score was over 4%. In terms of ranking, Uttar Pradesh jumped from 27th rank to 18th rank, Uttarakhand from 26th to 19th, while Delhi fell from 16th to 20th.

(Business Reforms Action Plan 2017)

Uttar Pradesh implemented 46 reforms and is yet to implement 326 reforms. Uttarakhand implemented 44 reforms and is yet to implement 328 reforms, and Delhi implemented 38 reforms and is yet to implement 327 reforms, while 7 are not applicable.

On top five reforms — Access to information and transparency enabler, single window, availability of land, construction permit enables, environment registration enablers — Uttar Pradesh and Uttarakhand made significant progress in single window, construction permit enables and environment registration enablers, while Delhi showed a poor implementation in single window.

Significantly, Bihar and Andhra Pradesh also made improvement and now are ranked above Delhi. Bihar with a score of 2.43% was at 20th rank in April and Andhra Pradesh with a score of 2.42% was at 21st rank. The real-time score of Bihar with 13.44% is at 16th rank and Andhra Pradesh with 13.98% is at 15th rank.

Among the top ten states, the ranking is more or less same with Telangana, Haryana and West Bengal securing first, second and third positions. Assam, Maharashtra, Chhattisgarh, Odisha and Gujarat got minor reshuffle within the top ten, and Karnataka and Himachal secured their position in top 10 in real-time as compared to April. Since April, Rajasthan and Jharkhand slipped from their positions in the top ten.

The Business Reform Action Plan 2017 includes 405 recommendations for reforms on regulatory processes, policies, practices and procedures spread across 12 reform areas. Business Reform Action Plan carries out real-time ranking and tracking of states and union territories and provides information on current policies and practices.

It began as part of easing the doing business in the country which was shared and finalized at ‘Make in India’ workshop held on December 29, 2014. It is Prime Minister Narendra Modi’s top agenda to make India top destination for foreign investors. The Prime Minister ordered different departments to work aggresively on implementing these reforms when India showed poor improvement last year.

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