EODB ranking: Andhra Pradesh is the best place in India to invest money

South India

The two southern states of Karnataka and Kerala saw their position dropping compared to the previous years.  While Karnataka's position dropped from 8 to 17, Kerala saw its position dipping from 21 to 28. 

Andhra Pradesh is the best state in India to put one’s money in if this year’s national ranking on ease of doing business is any indication.

The ranks released by Department of Industrial Promotion and Internal Trade (DPIIT) showed the state retaining the top position for the third year in a row. Telangana which occupied the second spot in previous rankings has been pushed to third position by the northern state of Uttar Pradesh.

Tamil Nadu notched a rank higher this year by jumping to the 14th position from the earlier 15th position while the other southern states of Karnataka and Kerala dropping from 8th to 17th and 21st to 28th respectively.

Telangana is followed by Madhya Pradesh, Jharkhand, Chhattisgarh, Himachal Pradesh, Rajasthan, West Bengal, Gujarat and others, in that order. Delhi is at the 12th position on the ranking list. The national capital jumped 11 places from 2018 ranking of 23rd position.

Ease of Doing Business (EODB) is a joint initiative by the Department for Promotion of Industries and Internal Trade (DPIIT) and the World Bank to improve the overall business environment in the States. The ranking is based on implementation of business reform action plan.

The parameters considered for the ranking include areas such as construction permit, labour regulation, environmental registration, access to information, land availability and single- window system. The states have been trying to improve the investment climate based on the action plan for state reforms developed by DPIIT in 2015.

It started the program for reforms in partnership with state governments and Union Territories to make it easier, simpler and quicker for businesses to operate. These reforms cover the entire lifecycle of the business and aim at reducing compliance burden on industry significantly. The plan is designed keeping in mind 2 factors: Measurability and Comparability across States.

Andhra Pradesh has stood first in the overall ranking of the State business process reforms undertaken during 2019. These rankings represent the ease of doing business in the State with increased transparency, efficiency and effectiveness of the government regulatory functions vis-a-vis the business enterprises.

While releasing the report, Sitharaman said the ranking makes states and UTs a better place to do business.
“India is seen taking the reform process seriously which showed when foreign direct investment in the country increased even during the Covid-19 pandemic, amid what was called world’s strictest lockdown. Some states have shown extraordinary energy in putting together action plans and making sure that reforms happen. States have embraced the true spirit behind the State Business Reforms Action Plan," said Sitharaman after release of the rankings.

Kerala, which fared badly in the ranking, has put in several measures to improve its position. State Industries Minister E P Jayarajan exuded confidence that the state will improve its position in the next ranking.

A slew of initiatives aimed at attracting new entrepreneurs to the state are already under the way. Jayarajan said while new MSME units are all set to begin functioning, new projects in khadi, handloom and industrial sector are also being promoted.

“We have decided to take over 100 acres of land in each district for new industrial initiatives. This would be done by easing existing legislations so as to give relief to entrepreneurs. We will be able to improve our position next time. Due to the Covid-19 situation, we couldn’t take things forward as expected. But we can definitely improve,” he told the New Indian Express.


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