India is Keeping its Business Easy

India has announcements for the best States in terms of ease of doing business in May. This will be run by the Department of Industrial Policy and Promotion (DIPP). So far Chhattisgarh, Madhya Pradesh, and West Bengal have implemented 100% of the reform agenda mandated under the programme. In the May announcements the World Bank will have a huge part to play, and thus it will prosper India in the global sense. The World Bank will randomly interview 8,000 users across India to understand how reforms have been taken care.

Previous results showed Gujarat topped in 2015, Telangana and Andhra Pradesh tying for 2016 and Telangana once again topping in 2017. This is likely to change this year with Chhattisgarh, Madhya Pradesh and West Bengal making drastic improvements.

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Currently, Gujarat is 7^th, Andhra Pradesh is 8^th and Telangana at 9^th. This is based on the reform criteria being met, with only 99.5% done by Gujarat and AP while Telangana has only fulfilled 99.2%

Mamata Banerjee, Chief Minister of Bengal tweeted last month-

“regular and extensive monitoring, right from the grassroots level to the state secretariat level…projects are implemented on time with minimum hassle. Bengal continues to be number one in the country’s ease of doing business, leaving behind the so-called industry friendly states.”

What are the reforms that have been stipulated to ensure ease of doing business? There are a total of 372 reforms which include single window agency for approvals (no confusion about where to get final approval), enacting Public Delivery Guarantee Act and Mandating joint inspection under 10 Labor Acts.

The World Bank said that India’s current ranking is 130 thanks to two main reforms. The first is the elimination of requirements for a paid in minimum capital and a certificate to commence business operations. This helps solve the many problems when starting a business.

“What is significant about India is that they are in the middle of what appears to be a very, very ambitious process of reforms affecting a broad range of areas captured by the Doing Business indicators”, Lopez Claros, Director of the Global Indicators Group World Bank, said on a conference call.