Ease of doing biz: Gujarat slips to 5th rank

Wednesday 18th July 2018 06:16 EDT

From the most efficient state in 2015, Gujarat has slipped to fifth rank in the latest ease of doing industry ratings prepared by the World Bank and the Department of Industrial Policy and Promotion (DIPP). It has been a continuous slide for the state after then Chief Minister Narendra Modi became the prime minister in 2014. Last year, Gujarat was ranked third place, while Andhra Pradesh had collectively crowned the chart with Telangana.

According to the latest ratings, Andhra Pradesh is still the most efficient state to do business, while Telangana and Haryana are positioned at second and third positions respectively. Even Jharkhand has managed to beat Gujarat this year by means of securing the fourth rank. The DIPP, Ministry of Commerce and Industry, in partnership with the World Bank Group, launched the Business Reform Action Plan (BRAP) 2017 for implementation by means of States/UTs. The BRAP includes 372 suggestions from reforms on regulatory processes, insurance policies, practices and procedures unfold throughout 12 reform spaces.

What went wrong with Gujarat

According to BRAP 2017 scorecard, Gujarat scored 97.96 per cent against 98.42 per cent by top-ranking Andhra Pradesh. Reform proof scorecard for both the states stood at 99.73 per cent but Gujarat lost out in industry comments by means of scoring 83.64 per cent against 86.50 per cent scored by Andhra Pradesh. Gujarat Deputy Chief Minister Nitin Patel said, “Since the ratings is based on many documents he did not want to comment.” Senior Congress leader Arjun Modhwadia said, “Ever since the BJP came to power in Gujarat, they have been giving land to their cronies at throwaway prices. BJP isn't interested in promoting industrialisation and activity creation. No surprise, Gujarat’s rank is sliding.”

Gujarat-based businessmen consider that the state can do better by aggressively selling its attractiveness. President of Gujarat Chamber of Commerce and Industry (GCCI) Jaimin Vasa said: “We have drawn the attention of the state on how other states are aggressively attracting businessmen around the country. Telangana and Andhra Pradesh attract businessmen by organising roadshows. We have also requested our state government to emulate their style to sell Gujarat among companies.”

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