Ease Of Doing Business In India: These States Top The Charts; Delhi, Bihar Among Worst States For Doing Business

When it comes to the Centre’s ranking of states on ease of doing business, seven states have scored more than 90 percent. These include Andhra Pradesh, Gujarat, Haryana, Karnataka, Punjab, Tamil Nadu and Telangana.

Business Reforms Action Plan (BRAP) 2020 report

According to the Business Reforms Action Plan (BRAP) 2020 report, when it comes to for improving investor confidence and access to government services for citizens, these states have led amongst a long list of reforms identified by the Centre.

Based on the implementation of BRAP which indicates progress in digitization, transparency, and investor confidence in the country, these states have been ranked since 2015 by the central government.

Previously it was a tad different, earlier the ranking system of government was in favour of a band of states in the same range of reform completion. 

According to the abandoned system, states like Andhra Pradesh, Uttar Pradesh, and Telangana were ranked in the top 3 positions.

The states in the second list include Himachal Pradesh, Madhya Pradesh, Maharashtra, Odisha, Uttarakhand and Uttar Pradesh which have 80-90 percent score.

With 50-80 percent score, third list includes the states likes Assam, Chhattisgarh, Goa, Jharkhand, Kerala, Rajasthan and West Bengal. 

With a score less than 50%, there is the national capital of Delhi accompanied by all union territories as well as Bihar.

Red tape & Business Ecosystem

This index aims to recognize those states which have taken strides in eradicating red tape as well as worked for uplifting the business ecosystem. 

Commece and Industry Minister Piyush Goyal said “The rankings have evolved significantly. From an original assessment of what action each state had taken, to a mix of actions taken, and feedback received by stakeholders, to now a 100% fully feedback-based assessment system”.

According to the previous edition 2019 of BRAP, the states Andhra Pradesh, Uttar Pradesh and Telangana lead the rankings.

A list of 301 reform action points spread over scores of parameters and at least 18 state government departments seeks its mention in the BRAP 2020.

A DPIIT official said that “Every year, a list of increasingly sophisticated reforms are planned and most states have shown great consistency in completing them. The government feels that a relook at the exercise may provide a more significant improvement in creating ease of doing business”.

The latest report saw the government giving a thrust on reforms around the PM Gatishakti plan.