Indian states ranking by ease of doing business

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

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

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

Best states for various areas of assessment 2015

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

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%)

References

Citations

^ ^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.
^ ^a ^b ^c OECD Economic Surveys: India 2017, Page 123.
^ ^a ^b PTI (2015-08-15). "Centre to announce 'Ease of Doing Business' ranking for states". Livemint. Retrieved 2021-09-12.
^ ^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.
^ "Ease of Doing Business in India". www.doingbusiness.org. Retrieved 25 April 2016.
^ "On ease of doing business Narendra Modi govt does a first, to improve India's World Bank ranking". The Financial Express. 18 February 2017.
^ "Business Reforms Action Plan". eodb.dipp.gov.in. Archived from the original on 2017-07-03. Retrieved 2017-06-23.
^ "2015 Rankings DIPP" (PDF). Archived from the original (PDF) on 2018-01-07. Retrieved 2018-02-09.
^ S, Arun (2017-11-08). "Telangana leads state-wise ease of doing business ranking". The Hindu. ISSN 0971-751X. Retrieved 2021-09-12.
^ "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.
^ "2015 indian states ease of doing business ranks".
^ 2019 Indian states ease of doing business rank [1].
^ 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.
^ "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.

External links

[:0-1] 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.

[action2-2] OECD Economic Surveys: India 2017, Page 123.

[:1-3] PTI (2015-08-15). "Centre to announce 'Ease of Doing Business' ranking for states". Livemint. Retrieved 2021-09-12.

[:2-4] 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".

[ease2-12] 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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