 "BJP, NDA-ruled states dominate top five in ease of business")
Former commerce minister and Congress leader Anand Sharma told Business Standard: “This is a propaganda. One has to refer to RBI (Reserve Bank of India) figures on FDI (foreign direct investment) inflows into states from 2000 to 2014 — Maharashtra topped the table (with 314.1 billion), Delhi next (with 206 billion) followed by Tamil Nadu (65.4 billion) Karnataka (with 61 billion) and Gujarat was fifth (with only 44.4 billion). When even on the parameter of FDI inflows, Gujarat was never on the top and we do not see any delivery on the ground, today’s ranking are nothing but propaganda.”
He added, “In reality, the economy is in a very bad shape and we are struggling.”
Karnataka, which ranked ninth, had told Business Standard a few weeks ago that it expected to be ranked among the top five, especially as it considers itself a pioneer in e-governance. Jharkhand, where a former chief minister is facing corruption and money-laundering charges in the coal scam, is the third on the list. Odisha, where several mining majors, including Korean giant Posco, are facing serious hurdles, is ranked at number 7. Odisha is ruled by the non-BJP, non-Congress Biju Janata Dal.
Rajasthan Industries Minister Gajendra Singh Khimsar was not surprised at the sixth rank his state got. “Recently, the Centre had circulated a set of 285 questions to all states aimed at ranking them on ease of doing business. Rajasthan today complies with 236 of them. 38 of the questions are not applicable to the state.” We have put in place a system for online approvals and certifications that would address the entire process from making an application for starting anew company to filing of returns. This will bring in transparency, fast-track decision making and end inspector raj", he is quoted as having said.
Speaking to Business Standard before the rankings were made public, Maharashtra Chief Minister Devendra Fadnavis was confident that Maharashtra (ranked at number 8) would beat most other states because of the efforts his government had been making to ease business in the state. "The government has already reduced the number of various approvals required by investors to start a project to 25 from 76. This will be brought down further", he had told Business Standard. According to the chief minister, the government with the active involvement of the industry will implement Make In Maharashtra scheme. Fadnavis said the government will carry out labour reforms in consultation with stakeholders. A committee, headed by thestate labour commissioner, has already been set up for this purpose.
Tamil Nadu, considered one of the India's most progressive states and attracting seven per cent of all Foreign Direct Investment (FDI) to India got the third highest FDI among all the states in India in 2014-15. But the Ease of Doing Business report puts it as a middle ranking state at number 12. Even more surprisingly, Tamil Nadu is beaten by West Bengal at number 11. The list reveals that it is easier to do business in Uttar Pradesh (number 10) than Tamil Nadu.
A somewhat comparable study was done by the World Bank in 2009 as well. While this report is more exhaustive, the 2009 report compared business regulations across 17 Indian cities. The report focused on local regulations that affected 7 stages in the life of a small or medium-size domestic enterprise: starting a business, dealing with construction permits, registering property, paying taxes, trading across borders, enforcing contracts, and closing a business. The report found that doing business was easier in Ludhiana, Hyderabad, and Bhubaneshwar. It was more difficult to start and operate a business in Kochi and Kolkata.