Ease of Doing business among Indian states improving rapidly: PHD Chamber

At the socio economic front the states have taken effective measures towards the implementation of reforms in healthcare, education and basic physical and social infrastructure. The states are now on their way to rapid industrialization through coordinated development of Small, Medium and Large scale enterprises, according to the study conducted by PHD Research Bureau, research arm of PHD Chamber of Commerce and industry.

The study titled as Ease of Doing Business among Indian States: Suggestive Measures has been released by Shri Pradeep Kumar Sinha, Cabinet Secretary, Government of India in a programme Accelerating Ease Of Doing Business to the next orbit, on 17th September 2016.

 

As states play a pivotal role in the overall development of the Indian Economy, these are now dismantling barriers in production process such as land, labour, capital and entrepreneurship and contributing in a massive way towards infrastructure building and industrialisation, said the study.

The recent breakthrough in the implementation of GST is commendable which will reduce the barriers between states and will make the country a common market. A wider tax base and better compliance will boost overall economic growth of the country, said Dr. Mahesh Gupta, President, PHD Chamber at the release of the study.

According to the study, though predominantly some states are agrarian in nature, but the industrial sector in the states has also emerged as a significant contributor in their economic and social development. Now states offer favorable environment for attracting industrial investments through investor friendly policies and better infrastructural support, said Dr. Mahesh Gupta

The states have developed good infrastructure for promoting the thriving sectors like tourism and IT industry with various lucrative public-private partnerships (PPP), said Dr. Gupta

The states are focusing on strengthening their infrastructure base and making the business environment more conducive to industrial developments. Many states are known for their efforts in the area of skill development and good governance; also many states have shifted their focus towards disaster management techniques, he said

Going ahead, the role of states is expected to be increasingly more critical in sustaining the overall development of the country in coming times, said the study

Several challenges to their growth, such as easing the supply side constraints in the economy, upskilling the workforce and increasing manufacturing competitiveness are still the major areas of concern, said the study.

The state policies should be focusing on diversifying the beneficiaries of the socio economic development programmes to ensure an all inclusive growth in the country; the states should also focus on the comparative advantages of their respective strengths and specializations and should also adopt best practices of each other's strengths, suggested the study.

In a nutshell, the study said that the reforms undertaken by the state governments are expected to bring out strong outcomes which would pave the way for strong and sustainable economic growth of the country in the coming times. With the continuous increase in per capita income of the states, there exist a tremendous potential for expansion of consumer markets and enhanced employment opportunities with expanding production possibility frontiers

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