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Indian states ranking by ease of doing business

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States and union
territories of India
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Ease of doing business ranking of states and union territories of India is the annual ease of doing business (EDB) index of states and union territories of India based on the completion percentage scores of action items points of annual Business Reforms Action Plan (BRAP) under the Make in India initiative.[1][2][3] This ranking of states has been done by World Bank since 2015 and facilitated by the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry (India) of Government of India based on the progress of states in completing annual reform action plan covering 8 key areas which has a number of points that vary every year, for example 2017 and 2016 reform plan had 372 and 340 action points respectively.[4][1][2][3] The World Bank ranks individual nations on the ease of doing business index. The ranking of states is not done on same criteria as ranking of nations. Ranking of states does not reflect the level of business-conducive nature of the states, it reflects the willingness of states to reform and attract investments.[4]

India jumped to 100th place out of 190 countries in the World Bank's 2017 ease of doing business index, from 130th in the 2016.[5] In February 2017, the government appointed the United Nations Development Programme (UNDP) and the National Productivity Council "to sensitise actual users and get their feedback on various reform measures".[6] Consequently, now there is competition among the Indian states to improve their current ranking on the ease of doing business index.[7][8] Centre government as well as various states are executing their respective Business Reforms Action Plan (BRAP) to improve their ranking.[9][1][2]

Methodology

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In December 2014, Chief Secretaries of states and union territories finalized the basis on which states would be ranked and scored in EDB. 98-points would be evaluated for each state. Accordingly, the first EDB report was constructed with regard to the 98 points and the respective implementation in each state.[10][11][12]

The latest rankings released on 5 September 2020 are based on the performance of states on a wide ranging list of 181 reform points drawn up by the government. This covers 45 business regulatory areas which were used to assess the efficacy and energy of their reforms. These included single window system, inspection enablers, paying taxes, utility permits, and environment, among others. However, the biggest were access to information and transparency enablers, labour regulation-enablers and construction permit enablers. The final ranking is based on two separate scoring systems with the majority of the assessment conducted on the basis of states providing evidence of reforms in policies and procedures undertaken by them.[13]

2015-2019 EDB ranks and scores

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The following ranks and scores are based on Department of Industrial Policy and Promotion (Department for Promotion of Industry and Internal Trade) figures, Government of India.[14]

State 2015 2017 2019
Rank Score Rank Change Score Change Rank Change
Gujarat 1 71.14 5 Decrease (-4) 97.99 Increase 26.85 10 Decrease (-5)
Andhra Pradesh 2 70.12 1 Increase (1) 98.3 Increase 28.18 1 Steady
Jharkhand 3 63.09 4 Decrease (-1) 98.05 Increase 34.96 5 Decrease (-1)
Chhattisgarh 4 62.45 6 Decrease (-2) 97.31 Increase 34.86 6 Steady
Madhya Pradesh 5 62.00 7 Decrease (-2) 97.3 Increase 35.3 4 Increase (3)
Rajasthan 6 61.04 9 Decrease (-3) 95.7 Increase 34.66 8 Increase (1)
Odisha 7 52.12 14 Decrease (-7) 92.08 Increase 39.96 29 Decrease (-15)
Maharashtra 8 49.43 13 Decrease (-5) 92.88 Increase 43.45 13 Steady
Karnataka 9 48.50 8 Increase (1) 96.42 Increase 47.92 17 Decrease (-9)
Uttar Pradesh 10 47.37 12 Decrease (-2) 92.89 Increase 45.52 2 Increase (10)
West Bengal 11 46.90 10 Increase (1) 94.59 Increase 47.69 9 Increase (1)
Tamil Nadu 12 44.58 15 Decrease (-3) 90.68 Increase 46.1 14 Increase (1)
Telangana 13 42.45 2 Increase (11) 98.28 Increase 55.83 3 Decrease (-1)
Haryana 14 40.66 3 Increase (11) 98.06 Increase 57.4 16 Decrease (-13)
Delhi 15 37.35 23 Decrease (-8) 31.69 Decrease -5.66 12 Increase (11)
Punjab 16 36.73 20 Decrease (-4) 54.36 Increase 17.63 19 Increase (1)
Himachal Pradesh 17 23.95 16 Increase (1) 87.9 Increase 63.95 7 Increase 9)
Kerala 18 22.87 21 Decrease (-3) 44.82 Increase 21.95 28 Decrease (-7)
Goa 19 21.74 19 Steady 57.34 Increase 35.6 24 Decrease (-5)
Puducherry 20 17.72 27 Decrease (-7) 15.65 Decrease -2.07 27 Steady
Bihar 21 16.41 18 Increase (3) 81.91 Increase 65.5 26 Decrease (-8)
Assam 22 14.84 17 Increase (5) 84.75 Increase 69.91 20 Decrease (-3)
Uttarakhand 23 13.36 11 Increase (12) 94.24 Increase 80.88 11 Steady
Chandigarh 24 10.04 29 Decrease (-5) 11.54 Increase 1.5 29 Steady
Andaman and Nicobar Islands 25 9.73 31 Decrease (-6) 1.25 Decrease -8.48 22 Increase (9)
Tripura 26 9.29 25 Increase (1) 22.45 Increase 13.16 29 Decrease (-4)
Sikkim 27 7.23 33 Decrease (-6) 0.14 Decrease -7.09 29 Increase (4)
Mizoram 28 6.37 30 Decrease (-2) 3.66 Decrease -2.71 25 Increase (5)
Jammu & Kashmir 29 5.93 22 Increase (7) 32.76 Increase 26.83 21 Increase (1)
Meghalaya 30 4.38 34 Decrease (-4) – – 29 Increase (5)
Nagaland 31 3.41 28 Increase (3) 14.16 10.75 29 Decrease (-1)
Arunachal Pradesh 32 1.23 34 Decrease (-2) – -1.23 29 Increase (5)
Manipur – – 32 – 0.27 – 29 Increase (3)
Dadra & Nagar Haveli – – 26 – 21.88 – 23 Increase (3)
Daman & Diu – – 24 – 28.69 – 18 Increase (6)
Lakshadweep – – 34 – – – 15 Increase (19)

Best states for various areas of assessment 2015

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Area of assessment National Average Best performing State
Setting Up a Business 31.91% Punjab (81.48%)
Complying with Environment Procedures 31.61% Gujarat (100.00%)
Complying with Labour Regulations 33.81% Jharkhand (100.00%)
Obtaining Infrastructure related Utilities 32.01% Maharashtra (88.89%)
Registering and Complying with Tax Procedures 48.61% Karnataka (97.73%)
Carrying Out Inspections 19.45% Jharkhand (72.00%)
Enforcing Contracts 16.49% Maharashtra (55.56%)

Top five states for various areas of assessment 2015

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Rank Setting up a business Land allotment and obtaining construction permits Complying with environment procedures Complying with labour regulations Obtaining infrastructure-related utilities Registering and complying with tax procedures Carrying out inspections Enforcing contracts
1 Punjab

(81.48%)

Madhya Pradesh

(72.73%)

Gujarat

(100.00%)

Jharkhand

(100.00%)

Maharashtra (88.89%) Karnataka (97.73%) Jharkhand

(72.00%)

Maharashtra

(55.56%)

2 Andhra Pradesh

(78.57%)

Gujarat

(72.41%)

Andhra Pradesh

(85.19%)

Gujarat

(76.47%)

Gujarat

(75.00%)

Andhra Pradesh

(90.63%)

Gujarat

(71.74%)

Madhya Pradesh

(44.44%)

3 Chhattisgarh

(77.78%)

Maharashtra

(70.27%)

Rajasthan

(70.37%)

Chhattisgarh

(76.47%)

Madhya Pradesh

(75.00%)

Rajasthan

(89.47%)

Andhra Pradesh

(62.00%)

Gujarat

(33.33%)

4 Odisha

(71.43%)

Rajasthan

(63.64%)

Punjab

(70.37%)

Andhra Pradesh

(75.00%)

Delhi

(68.75%)

Odisha

(85.29%)

Chhattisgarh

(58.00%)

Chhattisgarh

(33.33%)

5 Rajasthan

(65.38%)

Andhra Pradesh

(62.16%)

Madhya Pradesh

(66.67%)

Uttar Pradesh

(70.59%)

Andhra Pradesh

(60.00%)

Madhya Pradesh

(82.50%)

Rajasthan

(50.00%)

Tamil Nadu

(33.33%)

See also

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References

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Citations

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  1. ^ a b c Charkraborty, Subhayan (2016-10-31). "Andhra Pradesh, Telengana set to top the charts for ease of doing business". Business Standard India. Retrieved 2021-09-12.
  2. ^ a b c OECD Economic Surveys: India 2017, Page 123.
  3. ^ a b PTI (2015-08-15). "Centre to announce 'Ease of Doing Business' ranking for states". Livemint. Retrieved 2021-09-12.
  4. ^ a b Pattanayak, Banikinkar (2018-02-11). "Ease of doing business: 18 states claim perfect score in reforms". The Financial Express. Retrieved 2021-09-12.
  5. ^ "Ease of Doing Business in India". www.doingbusiness.org. Retrieved 25 April 2016.
  6. ^ "On ease of doing business Narendra Modi govt does a first, to improve India's World Bank ranking". The Financial Express. 18 February 2017.
  7. ^ "Business Reforms Action Plan". eodb.dipp.gov.in. Archived from the original on 2017-07-03. Retrieved 2017-06-23.
  8. ^ "2015 Rankings DIPP" (PDF). Archived from the original (PDF) on 2018-01-07. Retrieved 2018-02-09.
  9. ^ S, Arun (2017-11-08). "Telangana leads state-wise ease of doing business ranking". The Hindu. ISSN 0971-751X. Retrieved 2021-09-12.
  10. ^ "Assessment of State Implementation of Business Reforms". Ease of Doing Business, Department for Promotion of Industry and Internal Trade, Government of India. September 2015. Retrieved 12 September 2021.
  11. ^ "2015 indian states ease of doing business ranks".
  12. ^ 2019 Indian states ease of doing business rank [1].
  13. ^ Chakraborty, Subhayan (2020-09-05). "Andhra keeps top rank, UP makes big gain in 'ease of doing business'". Business Standard India. Retrieved 2021-09-12.
  14. ^ "Handbook of Statistics on Indian States. Table 127: State-wise Ease of Doing Business Rank". Reserve Bank of India. 13 October 2020. Retrieved 2021-09-12.
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