Question : Ranking of States on Ease of doing Business

(a) whether the Government proposes to rank the States on ease of doing business in the country;

(b) if so, the details thereof including parameters adopted therefor, State/UTwise;

(c) the details of the industrial growth and the number of jobs created in this sector in the country during each of the last three years and the current year, State/UT-wise; and

(d) the steps taken by the Government for ease of doing business in the country?

Answer given by the minister

ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY
(SHRI C.R. CHAUDHARY)

(a) & (b): Yes, Madam. Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, has been working on improving the regulatory environment in States and Union Territories (UTs) in partnership with the State Governments and Union Territory Administration. The ranking of the States/UTs was first released in the year 2015 based on 98 points reforms agenda. The Business Reform Action Plan (BRAP) is in its third year (2017) and 372 action points have been shared with the States/UTs for implementation. The broad parameters include:
i) Labour Enablers
ii) Contract Enforcement
iii) Registering Property
iv) Inspection Enablers
v) Single Window System
vi) Land Availability and Allotment
vii) Construction Permit Enablers
viii) Environment Registration Enablers
ix) Obtaining Utility Permits
x) Paying Taxes
xi) Access to Information; and
xii) Transparency and certain Sector Specific Reforms

Details are available at the BRAP Portal: http://eodb.dipp.gov.in/. State/UT Governments have submitted their responses on the action plan. A total of 9806 reforms have been received out of which 7071 have been evaluated by the Department as on 31st January, 2018.

(c): State/(Union Territory) UT-wise data on industrial output and its growth and estimated figures for ‘Total Persons Engaged’ as per available Annual Survey of Industries (ASI) publications based on data collected by National Sample Survey Office (NSSO) during last four years (i.e. ASI 2011-12, 2012-13, 2013-14 and 2014-15) is annexed. Data for the period beyond 2014-15 is not available in the compiled form.

(d): Government of India has since 2014 aimed at creating a conducive environment by streamlining the existing regulations and processes and eliminating unnecessary requirements and procedures. A detailed plan of regulatory reforms has been implemented not only in the Central Government Ministries but also in States through the active engagements with State Governments.

Some of the major indicator wise reforms towards easing the business environment undertaken by the Government of India in partnership with the Governments of NCT of Delhi and Maharashtra as assessed by World Bank’s DB Report, 2018 include:-

i) Starting A Business: Starting a business was made easier and faster by introducing the SPICe (Simplified Proforma for Incorporating Company electronically) form which merged five different procedures i.e. (i) Name reservation, (ii) Company incorporation, (iii) Director Identification Number (DIN), (iv) Permanent Account Number (PAN) and the (v) Tax Deduction/Collection Account Number (TAN).

ii) Resolving Insolvency: The adoption of a new insolvency and bankruptcy code introduced a reorganization procedure for corporate debtors and facilitated continuation of the debtor’s business during insolvency proceedings.

iii) Paying Taxes: Paying taxes and other statutory contributions was simplified with the mandatory provision of electronic payment of Employee Provident Fund (EPF) and introducing a set of administrative measures easing compliance with corporate income tax.
The implementation of GST subsumed a number of indirect taxes namely (i) Service Tax (ii) Value Added Tax (ii) Central Sales Tax and (iv) Excise Duty. This will further reduce the time spent on filing and returns.
iv) Getting Credit: Access to credit was facilitated by adopting a new law on insolvency that provides a time limit and clear grounds for relief to the automatic stay for secured creditors during reorganization proceedings.

v) Enforcing Contracts: On enforcing contracts India introduced the National Judicial Data Grid, which made it possible to generate case measurement reports on local courts.

vi) Protecting Minority Investors: Protection to minority investor is increased by the remedies available in cases of prejudicial transactions between interested parties.

vii) Construction Permits: Dealing with construction permits has been made less cumbersome by implementing an online system streamlining the process in the Municipal Corporations of New Delhi and Municipal Corporation of Greater Mumbai. The online system has expedited the process of obtaining a building permit by reducing the number of procedures and time required to obtain building permits.

viii) Trading Across Borders: Import border compliance time in Mumbai was reduced by improving infrastructure at the Nhava Sheva Port. Elimination of merchant overtime fees and increased use of electronic and mobile platforms reduced export and import border compliance costs.

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