- The annual ease of doing business rankings for states and Union territories has been released by the World Bank and the Department of Industrial Policy and Promotion (DIPP).
- This is the third edition of the annual rankings, published by the government
About the rankings
- The rankings were published by the Department of Industrial Policy & Promotion (DIPP), which is under the commerce and industry ministry.
- DIPP, in collaboration with the World Bank, conducts this annual reform exercise for all states and Union territories under the Business Reform Action Plan (BRAP).
- The assessment under the BRAP 2017 is based on a combined score consisting of ‘reform evidence score’ that is based on evidence uploaded by states and Union territories as well as ‘feedback score’ that is based on response garnered from the actual users of the services provided to the businesses.
- It is for the first time that DIPP has introduced taking feedback to ensure that the reforms have actually reached ground-level.
- The publication of rankings is aimed at triggering competition among states, to attract investments and improve the business climate.
- In the last Budget, the union government identified 372 action points for states that they would carry out on a mission mode.
- The parameters included areas such as construction permits, labour regulation, and environmental registration, access to information, land availability, and ‘fast-tracked’ approvals via the single window system.
- In its latest ‘Doing Business’ report, the World Bank (WB) said India’s rank improved by a number of notches to 100 among 190 nations.
- The government has said that it aims to figure among the top 50 countries in the overall ease of doing business rankings, put out by the WB.
Highlights of the latest report
- Andhra Pradesh, Telangana and Haryana have scored first, second and third spots, respectively.
- AP, Telangana and Haryana scored 98.42 percent, 98.33 percent and 98.07 percent respectively.
- The DIPP added that 17 states have achieved a reform evidence score of more than 90 per cent and 15 have achieved a combined score of 90 per cent and more.
- Number of reform actions implemented under BRAP 2017 increased to 7,758 from 2,532 in 2015.
- Andhra Pradesh has a highly transparent and investor-friendly industrial policy, while Telangana has consistently done well with its industrial policy [Telangana Industrial Approval and Self-Certification System (Ti-Pass)].
- A large number of states have made significant progress in reforms suggested in BRAP 2017.
Toppers in various measures:
- Chhattisgarh tops in terms of property registration.
- Rajasthan tops in terms of construction permit.
- West Bengal tops in terms of labour regulation.
- Karnataka tops in terms of environmental registration.
- Uttarakhand tops in terms of land availability.
- Odisha tops in terms of paying taxes.
- Uttar Pradesh tops in terms of obtaining utility permit.
About BRAP 2017
- The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, in partnership with the World Bank Group, in 2017 released the Business Reform Action Plan (BRAP) 2017 for implementation by States/UTs.
- The BRAP includes 405 recommendations for reforms on regulatory processes, policies, practices and procedures spread across 12 reform areas:
- Labour regulation enablers;
- Contract enforcement;
- Registering property;
- Inspection reform enablers;
- Single window system;
- Land availability and allotment;
- Construction permit enablers;
- Environmental registration enablers;
- Obtaining utility permits;
- Paying taxes;
- Access to information and transparency enablers and
- Sector specific reforms spanning the lifecycle of a typical business
- This year there were 103 new set of reforms (out of 405) focusing on central inspection system, online land allotment system, online single window system for granting construction permits, registration under Inter State Migrant Workmen (RE&CS) Act, 1979, approval for boiler manufacturer and boiler erector etc.
- BRAP 2017 also included two new sectors i.e. Healthcare and Hospitality.
- The reform were to be implemented by end of October, 2017, based on which the rankings have been published.