Non-NDA states grab top 2 slots in biz reforms so far

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New Delhi | Published: July 8, 2016 3:42:39 PM

Two non-NDA states seem to be at the forefront of implementing reforms on the ease of doing business, while Gujarat, which had occupied the top slot in last year's ranking, is currently placed at 12

ease-LUttarakhand and Telangana lead the pack of states in implementing reforms on the 340 issues flagged jointly with the industry ministry.

Two non-NDA states seem to be at the forefront of implementing reforms on the ease of doing business, while Gujarat, which had occupied the top slot in last year’s ranking, is currently placed at 12. Last year, the NDA-ruled states occupied the top six slots.

At the end of the July 7 deadline for states to upload documents supporting their claims on a website run by the department of industrial policy and promotion (DIPP), Uttarakhand and Telangana led the pack of states in implementing reforms on the 340 issues flagged jointly with the industry ministry. However, the window for the re-submission of clarifications by states would be open until July 31, according to the DIPP.

DIPP officials, however, are quick to advise caution in reading too much into the current rankings, as the validation of evidence of the reforms submitted by the states is still underway. So, the real-time rankings of states displayed on the website are “highly dynamic” until the final rankings are announced in August. In fact, only a few days ago, Bihar occupied the top slot and now it’s at number 12.

The rankings are an assessment of the regulatory performance of states and a measure of how they improve over a period of time. Importantly, the ranking doesn’t accurately reflect the level of business-conducive nature of the states; rather, it shows how the states fared in implementing an action plan adopted by them with the help of the Centre within a particular time-frame. The ranking is based on indicators, including the ease of starting a business, registering a property, getting credit, paying taxes and resolving insolvency.

The Centre has asked the World Bank to rank states on the ease of doing business for the next three years, as it strives to ensure a high level of

professionalism in and non-partisan nature of such an exercise. This time, the role of the DIPP in this exercise is mostly limited to facilitating the interactions between states and the World Bank.

Last year, when states were ranked for the first time, based on measures taken by them to ensure the ease of doing business, DIPP, industry chambers CII and FICCI, and consultancy firm KPMG–apart from the World Bank–were involved in the rigourous exercise.

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