Millennium Post

Govt proposes ranking states based on business ease

“A detailed document on action to be taken on various measures of ease of doing business by states with specific timelines was prepared and circulated to all states/UTs,” Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Lok Sabha.

She said that the states would be rated on nine parameters -- setting up a business; land and building; environment compliances; labour compliances; infrastructure related utilities; finance and tax; inspection reforms; enforcing contract and exiting a business.

These action points were discussed and finalised at the national workshop on ‘Make in India’ in December last year.

“All the state governments/UTs have been requested to complete these reform measures against the indicated timelines on the 98 action points.

“Further, each state has been requested to complete the recommended action points within the identified timelines so that the state is not ranked poorly in sub-national study,” she said.

India has been ranked 142 among the 189 countries in the World Bank report on ease of doing business. It has dropped two places from its previous ranking.

The government is making efforts to improve the ranking and bring it within the 50th position.
Meanwhile, the government is likely to come out with a mechanism under which performances of states will be assessed in terms of ‘ease of doing business’.

“This is part of our effort to put an evaluation system in place to identify the Best Performing State, and for that matter, the ‘Worst Performing States’,” Department of Industrial Policy and Promotion (DIPP) secretary Amitabh Kant said at CII organised event.

According to a CII statement Kant said, “The idea is to create a sense of urgency and competition among the states.”

According to him, the first report card will be out by June or July. In the World Bank’s list of Ease of Doing Business India ranks 142 among 189 countries.

“There are 98 points on which the state governments have to act, and in a specified timeline. They have to act strongly and firmly,” he was quoted in the CII release. In an attempt to make things easier for entrepreneurs, the Central Government has created an e-based platform, the huge pile of regulations has been done away with, he added.

“I would like to tell entrepreneurs that they need not physically visit government departments or visit a whole lot of websites any more. Just use this e-platform and go cracking,” Kant said.

Meanwhile, in his view, once the Amritsar-Kolkata corridor is in operation, the profile of the entire eastern region will dramatically change, because it will be integrated to all the ports in East, which will in turn make the region one of the most crucial and strategic business point.
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