Home World Economy Ease of doing business: Centre lists 405 reforms for ranking states

Ease of doing business: Centre lists 405 reforms for ranking states

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NEW DELHI: The Department of Industrial Policy and Promotion along with the World Bank has released a list of 405 business process reforms on which the states will be ranked on ease of doing business this year. The states will have to implement these reforms by October 31. The government will then gather feedback from users to assess the action taken on the ground.

The reforms have been classified into 11 broad areas including labour regulation, contract enforcement, registering property, inspection enablers, single-window system, land availability and allotment, and construction permit.

The states will also have to make processes easier for environmental registration, obtaining utility permits for water and electricity, paying taxes and access to information and transparency.

Ease of doing business: Centre lists 405 reforms for ranking states

Besides, the government has chalked out certain sector specific reforms in health care and hospitality at state level. The Centre has asked the states to ensure that reforms are implemented as well as made known to the users through an online mechanism.

DIPP will carry out a comprehensive business-to government (B2G) feedback exercise this year after talking to businesses on the quality of implementation of the reforms claimed by the states and union territories. For each state, the scores will be aggregated over all the surveys conducted to yield the total score on which the final ranks will be based.

With respect to tax related reforms, the states have been told that once the goods and service tax is implemented it will replace the value-added tax or VAT, entry and entertainment tax related reforms.

“Such a ranking will be different from the last year’s ranking, which was a ranking of de jure reforms or reforms based on evidence submitted by states,” a press statement by DIPP said. The online portal will soon be enabled to allow states to upload the reforms implemented along with the evidence.

Last year, the states had to implement about 340 reforms. Several reforms from last year have been included for the 2017 ranking to gather feedback and assess them on successful implementation.

Andhra Pradesh and Telangana shared the top spot in 2016 ranking. Other high performing states in the second edition of the ranking included Telangana, which moved from 13th rank in 2015 to first in 2016, Haryana from 14th to sixth and Uttarakhand from 23rd to ninth.

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