Indian states ranking by ease of doing business
Ease of doing business ranking of states of India is the annual ease of doing business 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][4] 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.[5][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.[5]
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.[6] 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".[7] Consequently, now there is competition among the Indian states ranked by ease of doing business|states of India to improve their current ranking on the ease of doing business index.[8][9] Centre government as well as various states are executing their respective Business Reforms Action Plan (BRAP) to improve their ranking.[10][1][2]
The claims for the current rankings submitted by the states for the year 2017 are currently being verified based on the supporting documentary evidence, and the final scores will be readjusted accordingly. 18 states claimed a 100% completion score.
Methodology
The latest rankings released on September 5, 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 & 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.[11]
Ranking of Indian states
2015 Ranking[12]
| State | Rank | Score | Status |
| Gujarat | 1 | 71.14% | Aspiring Leader |
| Andhra Pradesh | 2 | 70.12% | Aspiring Leader |
| Jharkhand | 3 | 63.09% | Aspiring Leader |
| Chhattisgarh | 4 | 62.45% | Aspiring Leader |
| Madhya Pradesh | 5 | 62.00% | Aspiring Leader |
| Rajasthan | 6 | 61.04% | Aspiring Leader |
| Odisha | 7 | 52.12% | Aspiring Leader |
| Maharashtra | 8 | 49.43% | Acceleration Required |
| Karnataka | 9 | 48.50% | Acceleration Required |
| Uttar Pradesh | 10 | 47.37% | Acceleration Required |
| West Bengal | 11 | 46.90% | Acceleration Required |
| Tamil Nadu | 12 | 44.58% | Acceleration Required |
| Telangana | 13 | 42.45% | Acceleration Required |
| Haryana | 14 | 40.66% | Acceleration Required |
| Delhi | 15 | 37.35% | Acceleration Required |
| Punjab | 16 | 36.73% | Acceleration Required |
| Himachal Pradesh | 17 | 23.95% | Jump Start Needed |
| Kerala | 18 | 22.87% | Jump Start Needed |
| Goa | 19 | 21.74% | Jump Start Needed |
| Puducherry | 20 | 17.72% | Jump Start Needed |
| Bihar | 21 | 16.41% | Jump Start Needed |
| Assam | 22 | 14.84% | Jump Start Needed |
| Uttarakhand | 23 | 13.36% | Jump Start Needed |
| Chandigarh | 24 | 10.04% | Jump Start Needed |
| Andaman and Nicobar Islands | 25 | 9.73% | Jump Start Needed |
| Tripura | 26 | 9.29% | Jump Start Needed |
| Sikkim | 27 | 7.23% | Jump Start Needed |
| Mizoram | 28 | 6.37% | Jump Start Needed |
| Jammu & Kashmir | 29 | 5.93% | Jump Start Needed |
| Meghalaya | 30 | 4.38% | Jump Start Needed |
| Nagaland | 31 | 3.41% | Jump Start Needed |
| Arunachal Pradesh | 32 | 1.23% | Jump Start Needed |
Best states for various measure
| 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 different measure
| 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%) |
2019 Indian states ranking in "Ease of doing business"
| State or union territory | 2019 ranking[13] |
|---|---|
| Andhra Pradesh | (1/36) |
| Uttar Pradesh | (2/36) |
| Telangana | (3/36) |
| Madhya Pradesh | (4/36) |
| Jharkhand | (5/36) |
| Chhattisgarh | (6/36) |
| Himachal Pradesh | (7/36) |
| Rajasthan | (8/36) |
| West Bengal | (9/36) |
| Gujarat | (10/36) |
| Uttarakhand | (11/36) |
| Delhi | (12/36) |
| Maharashtra | (13/36) |
| Tamil Nadu | (14/36) |
| Lakshadweep | (15/36) |
| Haryana | (16/36) |
| Karnataka | (17/36) |
| Daman and Diu | (18/36) |
| Punjab | (19/36) |
| Assam | (20/36) |
| Jammu and Kashmir | (21/36) |
| Andaman and Nicobar | (22/36) |
| Dadra and Nagar Haveli | (23/36) |
| Goa | (24/36) |
| Mizoram | (25/36) |
| Bihar | (26/36) |
| Puducherry | (27/36) |
| Kerala | (28/36) |
| Arunachal Pradesh | (29/36) |
| Chandigarh | (29/36) |
| Manipur | (29/36) |
| Meghalaya | (29/36) |
| Nagaland | (29/36) |
| Odisha | (29/36) |
| Sikkim | (29/36) |
| Tripura | (29/36) |
2019 Indian states performance [13]
| Region | Best Performers in
2019 |
Consistentlyranked
best in last 4 rankings |
Most improved in 2019 (Rank) | Top improverssince 2015 (Rank) |
|
North |
Uttar Pradesh: Rank 2 |
Rajasthan | Uttar Pradesh: Improved to Rank 2 in 2019
from Rank 12 in 2018 |
Himachal Pradesh: Improved to Rank 7 in
2019 from Rank 17 in 2015 |
| Uttar Pradesh | Himachal Pradesh: Improved to Rank 7in
2019 from Rank 16 in 2018 |
Uttarakhand: Improved to Rank 11in 2019
from Rank 23 in 2015 | ||
| West | Madhya Pradesh:
Rank 4 |
Gujarat | Madhya Pradesh: Improved to Rank 4 in
2019 from Rank 7 in 2018 |
Madhya Pradesh: Improved to Rank 4 in
2019 from Rank 5 in 2015 |
| Chhattisgarh | ||||
| East | Jharkhand: Rank 5 | Jharkhand | West Bengal: Improved to Rank 9 in 2019
from Rank 10 in 2018 |
West Bengal: Improved to Rank 9 in 2019
from Rank 11 in 2015 |
| West Bengal | ||||
| South | Andhra Pradesh:
Rank 1 |
Andhra Pradesh | Tamil Nadu: Improved to Rank 14in 2019
from Rank 15 in 2018 |
Telangana: Improved to Rank 3 in 2019
from Rank 13 in 2015 |
| Telangana | ||||
|
UT |
Delhi: Rank 12 |
Delhi | Lakshadweep: Improved to Rank 15in
2019 from Rank 34 in 2018 |
Lakshadweep: Improved to Rank 15 in
2019 from Rank 33 in 2015 |
| Daman and Diu | Delhi: Improved to Rank 12 in 2019 from
Rank 23 in 2018 |
Daman and Diu: Improved to Rank 18 in
2019 from Rank 33 in 2015 | ||
|
North Eastern |
Assam: Rank 20 |
Assam | Mizoram: Improved to Rank 25 in 2019
from Rank 30 in 2018 |
Manipur: Improved to Rank 29 in 2019
from Rank 33 in 2015 |
| Tripura |
Arunachal Pradesh: Improved to Rank 29 in 2019 from Rank 34 in 2018 |
Mizoram: Improved to Rank 25 in 2019
from Rank 28 in 2015 |
See also
- Complementary initiatives
- Related concepts
References
Citations
- Andhra Pradesh, Telengana set to top the charts for ease of doing business, Business Standard, 31 Oct 2016.
- OECD Economic Surveys: India 2017, Page 123.
- Centre to announce ‘Ease of Doing Business’ ranking for states, Live Mint, 15 Aug 2015.
- Ease of doing 98-point action plan
- Ease of doing business: 18 states claim perfect score in reforms, Indian Express, 11 Feb 2018.
- "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. Retrieved 2017-06-23.
- "2015 Rankings DIPP" (PDF).
- Telangana leads state-wise ease of doing business ranking, The Hindu, 9 Nov 2017.
- "Andhra keeps top rank, UP makes big gain in 'ease of doing business'". business-standard.com. 5 September 2020. Retrieved 18 September 2020.
- "2015 indian states ease of doing business ranks".
- 2019 Indian states ease of doing business rank .