Now that we know that Gujarat, Andhra Pradesh and Jharkhand are the leaders, other states that have been a magnet for business all along will hopefully work to get their act in place soon.
The recent ranking of states based on implementing a 98-point plan on the Ease of Doing Business is a step in the right direction. Now that we know that Gujarat, Andhra Pradesh and Jharkhand are the leaders, other states that have been a magnet for business all along will hopefully work to get their act in place soon. Tamil Nadu that has attracted some of the biggest global businesses is ranked below both West Bengal and Uttar Pradesh, while Maharashtra is behind Odisha and Rajasthan. Similarly, while Andhra Pradesh is ranked second, it’s twin Telanagana is way down at 13. What that means is that these states will now have to work on the eight parameters―setting up a business, land allotment, environment procedures, labour regulations, obtaining infrastructure related utilities, tax procedures, carrying out inspections and enforcing contracts―that have been identified.
The big learning from the rankings by the World Bank and KPMG is that not one state has been classified a Leader (implementation level of 75% or more). Gujarat which lead the list has 71.14%, followed by Andhra Pradesh (70.12%), Jharkhand (63.09%). While 7 states are Aspiring Leaders (50%-75%) another 9 fall in the Acceleration Required (25%-50%) category. Half the states (16) are in Jump Start Needed category. The lowest 8 have scores below 10%.