Assessment of State Implementation of Business Reforms 2016
The
Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and
Industry, in partnership with the World Bank Group, is pleased to release the
results of the Assessment of State Implementation of Business Reforms 2015-16.
The Assessment studies the extent to which states have implemented DIPP’s
340-point Business Reform Action Plan (BRAP) for States/UTs 2015-16, covering
the period July 1, 2015 to June 30, 2016. The BRAP includes recommendations for
reforms on 58 regulatory processes, policies, practices or procedures spread
across 10 reform areas spanning the lifecycle of a typical business.
Data for this
assessment was collected from State Governments on the BRAP portal. The portal,
among the first of its kind globally, allowed State Governments to submit
evidence of implemented reforms. At least 32 State and UT Governments
submitted evidence of implementation of 7,124 reforms. These submissions
were reviewed by the World Bank team and validated by DIPP’s team to study
whether they met the objectives of the BRAP. The portal allowed for
collaborative dialogue between DIPP and the State Governments in finalizing the
evidence submitted. A total of 6,069 reforms were approved as implemented or
not applicable on the portal.
The results
of the assessment demonstrate that States have increasingly risen to addressing
the challenge of making it easier to do business. The national
implementation average stands at 48.93%, significantly higher than last
year’s national average of 32%. This demonstrates the great progress made by
States this year.
The final
rank of the States as of June 30, 2016 is shown in the table below.
|
2016 Rank
|
State
|
Score (%)
|
2015 Rank
|
|
1.
|
98.78
|
2
|
|
|
1.
|
98.78
|
13
|
|
|
3.
|
98.21
|
1
|
|
|
4.
|
97.32
|
4
|
|
|
5.
|
97.01
|
5
|
|
|
6
|
96.95
|
14
|
|
|
7.
|
96.57
|
3
|
|
|
8.
|
96.43
|
6
|
|
|
9.
|
96.13
|
23
|
|
|
10.
|
92.86
|
8
|
|
|
11.
|
92.73
|
7
|
|
|
12.
|
91.07
|
16
|
|
|
13.
|
88.39
|
9
|
|
|
14.
|
84.52
|
10
|
|
|
15.
|
84.23
|
11
|
|
|
16.
|
75.82
|
21
|
|
|
17.
|
65.48
|
17
|
|
|
18.
|
62.80
|
12
|
|
|
19.
|
47.62
|
15
|
|
|
20.
|
26.97
|
18
|
|
|
21.
|
18.15
|
19
|
|
|
22.
|
16.67
|
26
|
|
|
23.
|
14.58
|
-
|
|
|
24.
|
14.29
|
22
|
|
|
25.
|
1.79
|
-
|
|
|
26.
|
1.49
|
20
|
|
|
26.
|
1.49
|
31
|
|
|
28.
|
1.19
|
-
|
|
|
29.
|
0.89
|
28
|
|
|
30.
|
0.60
|
27
|
|
|
31.
|
0.30
|
32
|
|
|
31.
|
0.30
|
29
|
|
|
31.
|
0.30
|
24
|
|
|
31.
|
0.30
|
30
|
|
|
31.
|
0.30
|
25
|
|
|
31.
|
0.30
|
-
|
Based on
implementation of reforms, States have been divided into four categories, as
below
|
Category
|
States
|
|
Leaders
(90-100%)
|
Andhra Pradesh, Telangana, Gujarat, Chhattisgarh,
Madhya Pradesh, Haryana, Jharkhand, Rajasthan, Uttarakhand, Maharashtra,
Odisha, Punjab
|
|
Aspiring Leaders
(70-90%)
|
Karnataka, Uttar Pradesh, West Bengal and
Bihar
|
|
Acceleration Required
(40-70%)
|
Himachal Pradesh, Tamil Nadu and Delhi
|
|
Jump Start Needed
(0-40%)
|
Kerala, Goa, Tripura, Daman & Diu,
Assam, Dadra & Nagar Haveli, Puducherry, Nagaland, Manipur, Mizoram,
Sikkim, Arunachal Pradesh, Jammu & Kashmir, Chandigarh, Meghalaya,
Andaman & Nicobar Islands, and Lakshadweep.
|
The highlight
of the implemented reforms during this period is as follows:
• Single
Window Systems: Various States have created a dedicated body/bureau as a
one-stop system for State level regulatory and fiscal incentive approvals. The
online single window system has a provision for filing applications, payment,
status tracking, online scrutiny and approval of applications. The officials of
the Body/Bureau have also been given powers to grant approvals.
o
States
include:
Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Jharkhand, Madhya Pradesh,
Maharashtra, Punjab, Rajasthan, Telangana, Uttarakhand
• Tax
reforms: States have made good progress in tax reforms. These include
mandating e-registration for Value Added Tax (VAT), Central Sales Tax (CST),
Professional Tax, Entry tax, etc, allowing online payment and return filing;
providing e-filing support through service centers and helpline and risk-based
tax compliance inspections.
o States
include: Bihar, Chhattisgarh, Gujarat, Karnataka, Madhya Pradesh,
Maharashtra, Odisha, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand, West Bengal
• Construction
permits: Many States have allowed applicants to apply online and upload
building plans for automated construction permit approval. In addition, several
states have developed AutoCAD-based systems that automatically scan building
plans and monitor compliance with the building bye-laws and building codes in
force.
o States include: Andhra
Pradesh, Chhattisgarh, Gujarat, Haryana, Madhya Pradesh, Maharashtra,
Rajasthan, Telangana, Uttrakhand
• Environment
and labour reforms: States have also implemented advanced automated
solutions to deal with environmental and pollution related applications and
approvals. These solutions provides hassle free, 24 X 7 e-access to businesses
to apply online, track applications, file returns and statements and get online
permissions under various Acts and regulations.
o States include: Andhra
Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Madhya
Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar
Pradesh, Uttarakhand, West Bengal
• Inspection
Reforms: A number of inspection reforms with regard to labour, tax and
environment related compliances have been introduced across the States to help
businesses comply with inspection requirements in a user-friendly manner. To
bring in transparency, the states have also published comprehensive procedures
and checklist for various inspections and have implemented online systems for
allocation of inspectors to increase efficiency and effectiveness of the procedure.
o States include: Andhra
Pradesh, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Madhya Pradesh,
Odisha, Punjab, Rajasthan, Punjab, Telangana, Uttar Pradesh, Uttarakhand
• Commercial disputes and paper-less
courts: There has been significant progress this year in the area of
judicial reforms compared to last year, particularly due to the passage of the
Commercial Courts, Commercial Divisions and Commercial Appellate Divisions Act.
To address the concern of time and costs associated with various legal
processes, District Courts in various states have also made the provision of
making online payments, e-filing and e-summons. Few States have also filled up
vacancies in District Courts/commercial courts to ensure availability of
adequate capacity for dealing with various cases.
o States include: Andhra
Pradesh, Chhattisgarh, Gujarat, Haryana, Jharkhand, Madhya Pradesh,
Maharashtra, Rajasthan, Telangana
However, the
present evaluation also highlights the need to properly communicate, monitor
and evaluate these reforms to ensure that their impact is being felt on the
ground.
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