For the second year in a row, Andhra Pradesh has topped the third edition of the government’s ‘Ease of Doing Business’ Index 2018 with a final score of 98.42 percent.
The government released the latest ranking of states and UTs under the Business Reform Action Plan (BRAP), 2017.
• Andhra Pradesh outperformed 28 other states and seven union territories (UTs) to be the best state to do business in the country.
• Andhra Pradesh was followed by neighbouring Telangana (98.33 percent score) and Haryana (98.07 percent score) at the second and third position, respectively.
• This year, Gujarat has slipped to the fifth rank in the ease of doing business from last year’s third position.
• Other states in the top ten are Jharkhand (4), Chhattisgarh (6), Madhya Pradesh (7), Karnataka (8), Rajasthan (9) and West Bengal (10).
• While Chhattisgarh has topped in terms of property registration, Rajasthan topped in terms of construction permit; West Bengal topped in terms of labour regulation; Karnataka topped in terms of environmental registration.
• Uttarakhand has topped in terms of land availability; Odisha topped in terms of paying taxes; and Uttar Pradesh topped in terms of obtaining utility permit.
• Delhi was ranked 23rd in the list while Punjab was at the 20th position, way behind neighbouring Haryana.
• Mumbai (Maharashtra) and New Delhi (Delhi), the two cities which the World Bank takes into consideration for its annual Ease of Doing Business Index, have not performed well on this state index.
• On the other hand, Meghalaya, Lakshadweep and Arunachal Pradesh ranked at the bottom for not doing anything to improve business climate.
In last year's rankings, Andhra Pradesh had jointly topped the index with Telangana while Gujarat’s rank dropped to third from the top slot in 2015.
Significant progress made by states this year
• A large number of states have made significant progress this year through the reforms suggested in BRAP 2016.
• 17 states achieved a reform evidence score of more than 90 percent and 15 states achieved a combined score of 90 percent and more.
• The states which have achieved 80 percent or more reforms evidence score represent 84 percent of the country's area, 90 percent of the country's population and 79 percent of India's GDP.
• Number of reform actions implemented under BRAP 2017 increased to 7758 from 2532 in 2015.
How the Index was prepared?
The index was jointly prepared by the World Bank and the Department of Industrial Policy and Promotion (DIPP). The index data was collected on an online dashboard maintained by the DIPP.
The assessment is based on a combined score consisting of reform evidence score that is based on evidence uploaded by States/UTs and feedback score that is based on response gathered from actual users of services provided to businesses.
It was for the first time that DIPP has introduced taking feedback to ensure that the reforms have actually reached ground level. The feedback was collected through face-to-face interviews of actual users.
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