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Report titled Assessment of State Implementation of Business Reforms released

Sep 15, 2015 16:51 IST

A report titled Assessment of State Implementation of Business Reforms was released on 14 September 2015.  

The report captures the findings of an assessment conducted jointly by the Department of Industrial Policy and Promotion (DIPP), the World Bank Group and KPMG as the knowledge partner, the Confederation of Indian Industry and the Federation of Indian Chambers of Commerce and Industry.

The assessment, the first of its kind, was conducted to take stock of reforms implemented by states in the period January to June 2015 based on the 98-point action plan for business reforms agreed between DIPP and State and Union Territory governments in December 2014.

Data for the assessment was collected through a structured questionnaire that was sent to each state and union territory government.  Following the completion of the data collection, the data was evaluated in detail to ensure that the same yardstick was applied to measure progress for all states.  

Top 10 State Rankings in terms of implementation of 98-point action plan

Rank

State

Score

1

Gujarat

71.14 percent

2

Andhra Pradesh

70.12 percent

3

Jharkhand

63.09 percent

4

Chhattisgarh

62.45 percent

5

Madhya Pradesh

62.00 percent

6

Rajasthan

61.04 percent

7

Odisha

52.12 percent

8

Maharashtra

49.43 percent

9

Karnataka

48.50 percent

10

Uttar Pradesh

47.37 percent

Highlights of the Report

  • Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh, Odisha and Rajasthan have implemented over 50 percent of the 98 point action plan business reforms studied in the assessment.
  • Gujarat took the top position in a list that ranked states on the ease of doing business.
  • Karnataka, Maharashtra and Uttar Pradesh are also among the top 10 states in the assessment.  
  • No state has implemented 75 per cent or more of the proposed reforms.
  • Punjab leads in the area of Setting up a Business, as it features an online single window system for registrations and licenses that cover most of the regulatory services in the country.  Andhra Pradesh and Chhattisgarh have also made significant progress in this area.  
  • States including Maharashtra followed by Gujarat and Madhya Pradesh, were ranked highest in Obtaining Infrastructure Related Utilities, with clearly defined timelines for electricity, water and sewage connections.  
  • Karnataka received the highest score on Registering and Complying with Tax Procedures.
  • Jharkhand leads the country in Carrying out Inspections, since its labour management system implementation has also focussed on inspections reform.
  • States have made good progress in general tax reforms like mandating e-registration for VAT and CST; allowing online payment and filing of returns for various state taxes.  
  • Twenty nine states allow VAT to be paid online and 28 states allow CST to be paid online.  
  • While most states allow e-filing of VAT and CST, 21 states have established helplines for users.
  • Twenty five states have defined timelines for VAT registration and 21 have defined timelines for CST registration.
  • Twenty six states are yet to introduce reforms along a wide range of labour inspections under various acts, or on inspections related to building permits.  
  • About 25 states lack online availability of information on land banks and use of GIS systems to track industrial land parcels.
  • The report also highlights the need to properly communicate, monitor and evaluate these reforms, to ensure that their impact is being felt on the ground.

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