Ease of Doing Business Ranking of States

Why in the News?

Recently, the Ministry of Commerce and Industry released an Ease of Doing Business (EoDB) Ranking.

• It was based on Business Reforms Action Plan (BRAP) report 2020.

Key Points:

• Aim: To boost investor confidence, foster a business-friendly climate and augment the ease of doing business across the country.
• Parameters: The parameters include various areas –
  • Construction permit
  • Labour regulation
  • Environmental registration 
  • Access to information
  • Land availability and single window system.

Key Findings:

Top Achievers	Seven states – Andhra Pradesh, Gujarat, Haryana, Karnataka, Punjab, Telangana and Tamil Nadu.
Achievers	Himachal Pradesh, Uttar Pradesh, Odisha, and Madhya Pradesh.
Emerging Business Ecosystems	Six states – Manipur, Meghalaya, Nagaland, Tripura, Puducherry and Jammu and Kashmir
Aspirers	Seven states – Goa, Assam, Kerala, Rajasthan, Jharkhand, Chhattisgarh and Bengal.

About Business Reforms Action Plan (BRAP):

• It was launched in 2015 to encourage healthy competition between states.
• The Ease of Doing Business Index is based on BRAP.
• The Department for Promotion of Industry and Internal Trade (DPIIT) has assessed the ease of doing business across states since 2014; 
• Previous reports have been published in 2015, 2016, 2017-18, and 2019.

• The BRAP 2020:

• • The report includes 301 reform points that cover 15 business regulatory areas like access to information, single window system, labour, environment, sectoral reforms and other reforms spanning the life cycle of a typical business.
  • Sectoral reforms have been introduced for the first time in BRAP 2020 wherein 72 reforms were identified across 9 sectors, namely, trade licence, healthcare, legal metrology, cinema halls, hospitality, fire NOC, telecom, movie shooting and tourism.