Ease of Business Rankings of Indian States 11/23/2016
Ease of Business Rankings of Indian States
The Government of India has embarked on ambitious reforms focused on improving the ease of doing business in India. The key areas of these reforms include starting a business, tax reforms, enforcing contracts, and resolving insolvencies if any.
2. The ‘Assessment of State Implementation of Business Reforms 2015-2016’ has been released by the Department of Industrial Policy and Promotion (DIPP) of the Ministry of Commerce and Industry in partnership with the World Bank[http://dipp.gov.in/English/Investor/easeDoingBusiness.aspx]. This assessment takes in to account how well State Governments have implemented DIPP’s 340-point Business Reform Action Plan, which provides recommendations for reform across 58 regulatory areas in India covering the entire business cycle.
3. The top 10 states according to the assessment given by 32 State Governments are:
| S.No |
Ranking of State |
Score in 2015-2016 Assessment of State Implementation of Business Reforms |
| 1. |
Andhra Pradesh |
98.78% |
| 2. |
Telangana |
98.78% |
| 3. |
Gujarat |
98.21% |
| 4. |
Chattisgarh |
97.32% |
| 5. |
Madhya Pradesh |
97.01% |
| 6. |
Haryana |
96.95% |
| 7. |
Jharkhand |
96.57% |
| 8. |
Rajasthan |
96.43% |
| 9. |
Uttarakhand |
96.13% |
| 10. |
Maharashtra |
92.83% |
4. Reforms implemented by States during this period have focused on the following areas:
| S.No |
Reform Area |
Key Implementing States |
| 1. |
Single Window Systems: Various States have created a dedicated body/bureau as a one-stop system for State level regulatory and fiscal incentive approvals. |
Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Jharkhand, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Telangana, Uttarakhand |
| 2. |
States have made good progress in tax reforms. These include mandating e-registration for Value Added Tax (VAT), Central Sales Tax (CST), Professional Tax, Entry tax, etc, allowing online payment and return filing; providing e-filing support through service centers and helpline and risk-based tax compliance inspections. |
Bihar, Chhattisgarh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand, West Bengal |
| 3. |
Construction permits: Many States have allowed applicants to apply online and upload building plans for automated construction permit approval. In addition, several states have developed AutoCAD-based systems that automatically scan building plans and monitor compliance with the building bye-laws and building codes in force. |
Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Madhya Pradesh, Maharashtra, Rajasthan, Telangana, Uttarakhand |
| 4. |
Environment and labour reforms: States have also implemented advanced automated solutions to deal with environmental and pollution related applications and approvals. These solutions provides hassle free, 24 X 7 e- access to businesses to apply online, track applications, file returns and statements and get online permissions under various Acts and regulations. |
Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand, West Bengal |
| 5. |
Inspection Reforms: A number of inspection reforms with regard to labour, tax and environment related compliances have been introduced across the States to help businesses comply with inspection requirements in a user- friendly manner. To bring in transparency, the states have also published comprehensive procedures and checklist for various inspections and have implemented online systems for allocation of inspectors to increase efficiency and effectiveness of the procedure. |
Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Madhya Pradesh, Odisha, Punjab, Rajasthan, Punjab, Telangana, Uttar Pradesh, Uttarakhand |
| 6. |
Commercial disputes and paper-less courts: There has been significant progress this year in the area of judicial reforms compared to last year, particularly due to the passage of the Commercial Courts, Commercial Divisions and Commercial Appellate Divisions Act. |
Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Jharkhand, Madhya Pradesh, Maharashtra, Rajasthan, Telangana |
The results of the assessment prove that States in India are increasingly focused on increasing ease of business.
5. We are also pleased to inform that a dedicated 5-member team has been established in the Department of Industrial Policy and Promotion to respond to enquiries from Chinese companies and facilitate their investments in India. The cell can be contacted at divay.pranav@investindia.org.in. This is in addition to the Commercial Representatives in Beijing, Shanghai, Guangzhou and Hong Kong, whose details are as below:
Mr. Wilson Babu
First Secretary (Commerce)
Embassy of India, Beijing |
Phone: +86-10-85312520
Fax: +86-10-85312532
Email: fscom@indianembassy.org.cn  |
Mr. Naveen Kumar
Consul(Commercial)
Consulate General of India, Shanghai |
Phone: 021-62199234(Direct)
Email: ccom@indianconsulate.org.cn |
Mr. T.J. Suresh
Consul (Commerce)
Consulate General of India Guangzhou |
Tel: +86-20-85501512
Fax: +86-20-85501510
Email: com.guangzhou@mea.gov.in |
Mr. Karun Bansal
Consul (Commerce)
Consulate General of India, Hong Kong |
Phone: +852 39709924
Fax: +852 28664124
Email: commerce@cgihk.gov.in |
