What does Andhra Pradesh topping the “ease of doing business list” actually mean? - letsdiskuss
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Medha Kapoor

B.A. (Journalism & Mass Communication) | Posted on | Share-Market-Finance

What does Andhra Pradesh topping the “ease of doing business list” actually mean?


Thinker | Posted on

“Ease of doing business” is the list published collaboratively by the World Bank and Department of Industrial Policy and Promotion (DIPP). The list ranks all the 28 states and 7 Union Territories of India according to the business standards fixed by the Indian government to promote competency among the states for attracting both foreign and Indian businessmen and investors.

According to this year’s list, Andhra Pradesh has got the highest ranking just like last year, leaving Telangana behind on the second place. Andhra Pradesh’s score is 98.42 percent while Telangana has scored 98.33 percent.

This means that Andhra Pradesh has fulfilled all the conditions set by the government for business most efficiently. According to The Economic Times, “The ranking is based on 372 action points or reforms undertaken to ease regulation and systems in construction permit, labour regulation, environmental registration, access to information, land availability, and single window system. It is aimed at triggering competition among states to attract investments and improve business climate.”

It is shocking however, that states and union territories like Delhi, Maharashtra, and Tamil Nadu are ranking unexpectedly low in the list. Delhi is categorized as one of the “aspirers”, being on 23rd position with the score percent of 33.99. Maharashtra and Tamil Nadu are above Delhi, in the category of “achievers”, having 13th and 15th spots and 97.29 and 95.93 percent scores respectively.
According to experts, the reason of the poor performance of these states is the raising of standards by the government so that India can perform better as a whole in international rankings of the World Bank.