World Bank, in association with The Department of Industry Policy & Promotion (DIPP) has released a report on implementation of business reforms in India; and Gujarat has topped the list of all Indian states in this research.
The report titled, “Assessment of State Implementation of Business Reforms”, has declared Gujarat as the easiest state to start a business, after considering 8 crucial factors which include allotment of land and permits, complying with environmental factors, registering a company, carrying out inspections and enforcing contracts.
DIPP came up with 285 questions, which was shared with various entrepreneurs, SMEs and Govt. organizations across India. The answers were reviewed by KPMG and World Bank for the creation of this report.
Overall, Gujarat has scored 71.14%, when gauged against a 98-points action plan, as suggested by the Indian Govt. and World Bank to make businesses flourish and prosper.
At #2 position is Andhra Pradesh which is closely following Gujarat with 70.12%; but the surprising entry is Jharkhand, which is ranked #3 with 63.09% points.
At #4 is Chhattisgarh, another surprising entry in the top 5. Madhya Pradesh is ranked #5 with 62% points.
Hence, Chhattisgarh and Jharkhand have now beaten states like Maharashtra (ranked #8), Karnataka (ranked #9), Tamil Nadu (ranked #12), and Delhi (ranked #15), which were traditionally considered as manufacturing and IT hubs of India.
Arunachal Pradesh is the most difficult state to start a business. The worst 5 states of India, in terms of ease of doing business are: Mizoram, ranked 28th with 6.37%; Jammu & Kashmir, ranked 29th with 5.93%; Meghalaya, ranked 30th with 4.38%; Nagaland, ranked 31st with 3.41% and Arunachal Pradesh, ranked 32ndwith 1.23%.
Onno Ruhl, country director of World Bank, said in the report “People love ranking but the challenge for states is to improve on various counts. We are excited to help them achieve this transformation,”
Here is the complete ranking of all Indian states:
Some other highlights from the report:
Top 10 sub-areas which were maximum reforms have been witnessed and the number of states which have implemented major changes:
– Top 10 specific reforms, pertaining to ease of doing business, and the number of states which have implemented these reforms:
– Top 10 areas where maximum reforms are required to kickstart new business expansions:
– The report also examines each of the 8 factors, and created a different state ranking for each.
– Every state has been micro-examined, in relation with every factors, and a comprehensive list of suggestions and room for improvement has been created.
In October last year, India was ranked 142 out of 189 countries in World Bank’s Global Ease of Doing Business report. After this report came out, Indian Govt. sought World Bank’s assistance in improving India’s position and this report is the first step in that direction.