New Ranking Shows States Competing for Investors'
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ASSESSMENT OF STATE IMPLEMENTATION OF BUSINESS REFORMS 2015-16This year, 15 states have implemented more than 75% of the reforms: Sitharaman
India will broaden its reform drive for next year's state rankings on the ease of doing business, commerce and industry minister Nirmala Sitharaman said on Monday.With Andhra Pradesh and Telangana sharing the top spot in the `Assessment of State Implementation of Business Reforms 2015-16', the minister said low-income states have shown the biggest improvements, implementing 70%-90% of the Department of Industrial Policy and Promotion's (DIPP) business reforms agenda.
“Not a single state had implemented more than 75% of all the reforms last year. This year, 15 states have implemented more than 75% of the reforms,“ Sitharaman said.
The assessment studies how 32 states and Union Territories implemented DIPP's 340-point Business Reform Action Plan between July 1, 2015 and June 30, 2016.
Business reforms undertaken by the states include single window systems for regulatory and fiscal incentive approvals, VAT e-registration, professional tax and online payment.
States have also made provisions for e-summons, created capacity in district and commercial courts and implemented automated solutions for environmental and pollution-related applications.
The high-performing states in the second edition of the ranking include Telangana (13th to first spot), Haryana (14th to sixth spot) and Uttarakhand (23rd to ninth spot).
The national implementation average of reforms stood at 48.93% compared to 32% last year. Last year, only seven states had implemented more than 50% of the reforms.
“States have been competing and healthily to make sure each of them is a performer and a haven for investors,“ the minister said.
Sitharaman however highlighted the need to provide more sup port to the north-eastern states and Jammu and Kashmir in taking forward the reform agenda.
The states and Union Territories that implemented less than 2% of the reforms agenda this year included Chandigarh, Sikkim, Puducherry, Nagaland, Mizoram, Meghalaya and Dadra and Nagar Haveli.
The Department of Industrial Policy and Promotion (DIPP) has put 12 states in the category of `Leaders' for implementing 90-100% of the reforms.
DIPP received evidence of implementation of 7,124 reforms by 32 states and Union Territories that was also reviewed by a World Bank team.
While Gujarat slipped from first spot to third this year, Chhattisgarh and Madhya Pradesh maintained their fourth and fifth ranks this year. DIPP will release a detailed report of the reforms in November.
DIPP maintained real-time rankings of states through an online dashboard to ensure transparency. The government now plans to introduce a feedback mechanism on the ranking in line with the global report.
“Not a single state had implemented more than 75% of all the reforms last year. This year, 15 states have implemented more than 75% of the reforms,“ Sitharaman said.
The assessment studies how 32 states and Union Territories implemented DIPP's 340-point Business Reform Action Plan between July 1, 2015 and June 30, 2016.
Business reforms undertaken by the states include single window systems for regulatory and fiscal incentive approvals, VAT e-registration, professional tax and online payment.
States have also made provisions for e-summons, created capacity in district and commercial courts and implemented automated solutions for environmental and pollution-related applications.
The high-performing states in the second edition of the ranking include Telangana (13th to first spot), Haryana (14th to sixth spot) and Uttarakhand (23rd to ninth spot).
The national implementation average of reforms stood at 48.93% compared to 32% last year. Last year, only seven states had implemented more than 50% of the reforms.
“States have been competing and healthily to make sure each of them is a performer and a haven for investors,“ the minister said.
Sitharaman however highlighted the need to provide more sup port to the north-eastern states and Jammu and Kashmir in taking forward the reform agenda.
The states and Union Territories that implemented less than 2% of the reforms agenda this year included Chandigarh, Sikkim, Puducherry, Nagaland, Mizoram, Meghalaya and Dadra and Nagar Haveli.
The Department of Industrial Policy and Promotion (DIPP) has put 12 states in the category of `Leaders' for implementing 90-100% of the reforms.
DIPP received evidence of implementation of 7,124 reforms by 32 states and Union Territories that was also reviewed by a World Bank team.
While Gujarat slipped from first spot to third this year, Chhattisgarh and Madhya Pradesh maintained their fourth and fifth ranks this year. DIPP will release a detailed report of the reforms in November.
DIPP maintained real-time rankings of states through an online dashboard to ensure transparency. The government now plans to introduce a feedback mechanism on the ranking in line with the global report.
Source: Economic Times, 1-11-2016
