Best Indian States for Business

The World Bank recently released a study that analysed and listed states according to the seriousness of their intent of doing business reforms. The result, when it came to who would be at the top, was not surprising. Gujarat, said the report titled Assessment of State Implementation of Business Reforms, is the most business-friendly Indian state.

The report was the offshoot of a Make in India workshop of chief secretaries last December where a 98-point action plan was drawn up to promote ease of business in states. The states were evaluated by the World Bank on how much of that action plan had been implemented at the ground level.

Reforms were categorised on eight broad parameters. These included setting up a business, allotment of land and obtaining construction permits, complying with environment procedures, complying with labour regulations, obtaining infrastructure related utilities, registering and complying with tax procedures, enforcing contracts and carrying out inspections.

Each state was then awarded a rating on the basis of how much of the action plan had been implemented. Gujarat was No 1, with 71.14 per cent of the plan in force, followed closely by Andhra Pradesh at 70.12 per cent. Jharkhand, at third place, was a surprise. The others in the top five were Chhattisgarh and Madhya Pradesh. These states are the most successful at pro- business measures such as general tax reforms, while the worst have demonstrated lethargy in easing conditions for business.

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