Telangana, Andhra tops Indian states in ease of doing business with real `laissez-faire'

Telangana and Andhra Pradesh jointly share the top spot in the all-India ranking of states in terms of ease of doing business, upstaging Gujarat, which has now been relegated to number three spot, as per the latest all-India Ease of Doing Business (EODB) reforms rankings, jointly conducted by the World Bank and the Department of Industrial Policy and Promotion (DIPP).

 

The ranking for Telangana is apt, especially since investors wanting to invest in the state need not meet any state government official even once to get their projects cleared.

Telangana promises time-bound clearances for all matters which are handled at the state-level with no need for a personal interactions and accepts self-certification from investors on a specified list of parameters – further simplifying the process of setting up any business in the state.

Andhra Pradesh, which is in a tie with Telangana for the top slot, also claims it has put a system in place under which an investor need not worry about running around for getting official clearances.

The Ease of Doing Business rankings released by the commerce ministry follow close on the heels of the dismal performance the country as a whole in the global rankings of ease of doing business. India barely moved up one place in the latest World Bank rankings from last year to settle at 130.

In the rankings released this week, last year's top performer Gujarat has been relegated to the third spot, after Telangana and AP.

Maharashtra, which has always been perceived as an industry-friendly state, barely makes it to the list of the top 10 states in India in ease of doing business, pipped by Chattisgarh (4th), Madhya Pradesh and Haryana at the 5th and 6th place, respectively, Jharkhand (7th), Rajasthan (8th) and Uttarakhand (9th).

The rankings were based on the percentage each state received for implementing key parameters defined earlier. Toppers Telanagana and AP earned 98.78 per cent whereas Gujarat was close by with 98.21 per cent and Maharashtra stood at 92.86 per cent.

West Bengal – a state not really known for its attractiveness for investors – had an implementation score of 84.23 per cent, outstripping both Delhi and TN.

Tamil Nadu, just ahead of Delhi at the 18th spot, was considerably better with implementation percentage 62.8.

Delhi was at the 19th spot in a list of 36 states, with just 47.62 per cent implementation score- meaning it did not comply with even half the parameters needed in the EODB list.

Kerala barely had a fourth of the checks in place with implementation score of just 26.97 per cent, but it is the north-eastern states, which put up a pathetic performance. Tripura secured the top score of 16.167 per cent while Meghalaya was at the bottom of the pile with an implementation score of just 0.30 per cent.