Andhra Pradesh and Telangana jointly topped the 2016 all-India State/Union Territory-wise Ease of Doing Business rankings, while last year's topper Gujarat slipped to the third spot. The rankings, announced by Commerce and Industry Minister Nirmala Sitharaman, are on the basis of a 340-point business reform action plan and their implementation by the States. This covers the period from July 1, 2015, to June 30, 2016.The 340 reform areas are broadly under categories including construction permits, environmental and labor registration, obtaining electricity connection, online tax-return filing, inspection reform, access to information and transparency, single window, land availability and commercial dispute resolution.
The top ten ranks in 2016 included Andhra Pradesh & Telangana (98.78 per cent each implementation rate), followed by Gujarat (98.21 per cent), Chhattisgarh (97.32 per cent), Madhya Pradesh (97.01 per cent), Haryana (96.95 per cent), Jharkhand (96.57 per cent), Rajasthan (96.43 per cent), Uttarakhand (96.13 per cent) and Maharashtra (92.86 per cent).
Meanwhile, the World Bank said what was interesting this year was that four of the seven states with the lowest income levels in India have found a place in the top ten ranks, while all the seven such states had an implementation rate of over 75 per cent. These low-income states included Chhattisgarh (97.32 per cent implementation rate regarding the 340 reform measures, and fourth rank), Madhya Pradesh (97.01 per cent and fifth), Jharkhand (96.57 per cent and seventh), Rajasthan (96.43 per cent and eighth), Odisha (92.73 and 11th), Uttar Pradesh (84.52 per cent and 14th), Bihar (75.82 per cent and 16th rank).The national implementation average stands at 48.93 per cent, significantly higher than last year's national average of 32 per cent .
The laggards falling in the “jump start needed” category with an implementation percentage of 0-40 per cent include Kerala, Goa, Tripura, Daman and Diu, Assam, Dadra, and Nagar Haveli, Puducherry, Nagaland, Manipur, Mizoram, Sikkim, Arunachal Pradesh, Jammu and Kashmir, Chandigarh, Meghalaya, Andaman and Nicobar Islands, and Lakshadweep.
The 'leaders' category with an implementation percentage of 90-100 per cent includes the top ten ranked states and Odisha and Punjab (91.07 per cent). The next category of 'aspiring leaders' with an implementation rate of 70-90 per cent includes Karnataka, Uttar Pradesh, West Bengal and Bihar. This is followed by the 'acceleration required' category that includes Himachal Pradesh, Tamil Nadu and Delhi.
The Bank, along with the Centre's Department of Industrial Policy & Promotion (DIPP) was involved in the process of reviewing the evidence submitted by states/UTs regarding the implementation of reforms for the rankings. The World Bank said it was looking into India's suggestion that the World Bank Group's global Doing Business rankings need to consider reforms undertaken across the country and not just in Mumbai and Delhi as is being done currently. India's rank in the recently released global Doing Business rankings was a lowly 130th, just one rank up from the previous year's 'revised' ranking of 131st.
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