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A.P., Telangana top in ease of doing business (Relevant for GS Prelims and Mains Paper II)

Andhra Pradesh and Telangana have jointly topped the 2016 all-India State/Union Territory-wise ease of doing business rankings, while last year’s topper Gujarat slipped to the third spot. AP is at No.1 followed by Telangana, at No.2 position among 29 States and seven Union Territories.

The rankings, announced, have been arrived at on the basis of a 340-point business reform action plan and their implementation by the States. This covers the period from July 1, 2015 to June 30, 2016.

Last Year’s Rankings
The ranks were announced for the first time in 2015, Gujarat bagged the No.1 rank followed by Andhra Pradesh in the second position while Telangana secured 13th rank and the evaluation was then done on the basis of 98-point business reform action plan. This time round, the DIPP awarded ranks on the basis of 340-point business reform action plan.

Low-income States shine
The World Bank said that four of the seven States with the lowest income levels in India had found a place in the top 10, while all the seven such States had an implementation rate of over 75 per cent.

These low-income States included:
1. Chhattisgarh (97.32 per cent implementation rate regarding the 340 reform measures, and fourth rank)
2. Madhya Pradesh (97.01 per cent and fifth)
3. Jharkhand (96.57 per cent and seventh)
4. Rajasthan (96.43 per cent and eighth)
5. Odisha (92.73 and 11th)
6. Uttar Pradesh (84.52 per cent and 14th)
7. Bihar (75.82 per cent and 16th rank)

Procedure of Rankings denoted to the states
The Bank, along with the Centre’s Department of Industrial Policy & Promotion (DIPP) was involved in the process of reviewing the evidence submitted by States/UTs regarding implementation of reforms for the rankings.

 



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