Poll-bound Uttar Pradesh has been ranked last among Indian states for ease of doing business index by the Asia Competitiveness Institute (ACI) of the Lee Kuan Yew School of Public Policy in Singapore.
While UP’s ranking is bad advertisement for Akhilesh Yadav’s government, Maharasthra topped the ACI’s list followed by Gujarat and Delhi. Goa, Andhra Pradesh, Tamil Nadu, Karnataka, Madhya Pradesh, Himachal Pradesh, Telangana rank in the remaining top ten respectively.
The index takes into account three major components: attractiveness to investors, business friendliness and competitive policies of the selected states.
This is the first time that the institute has undertaken the survey. As part of the exercise the surveyors visited all the states covered in the report.
“This (ACI index) is much broader than the World Bank’s ease of doing business report. It also follows a bottom up approach that takes both hard data as well as survey data. It is not clear why Rajasthan is missing in the analysis. The state is perceived as the most business friendly and is ranked at 6 in World Bank survey,” said N R Bhanumurthy, professor, national institute of public finance and policy, who participated in the forum on Friday. “It appears that the survey is largely manufacturing-centric, although it fits well with PM’s Make in India campaign.”
While Andhra Pradesh has been ranked fifth, Telangana managed to be in the top ten.
“We will present the findings to Prime Minister Narendra Modi as the report contains a number of recommendations as to how they can improve,” said Tan Khee Giap, co-director, associate professor of public policy, Asia Competitiveness Institute.
As of 2015, India has the world’s third-largest GDP in purchasing power parity term recorded at $7.98 trillion. Even in terms of nominal GDP India enjoys the seventh largest nominal GDP in the world registered at $2.07 trillion.
“The umbrella project of Make in India through which the Prime Minister has implied to make India the factory of the world and create 100 million jobs needs a strong foundation as there exists the obstacle of an equally divided record of progress across sub-national economies,” Tan said.
(Disclaimer: Travel for this story was sponsored by the Lee Kuan Yew School of Public Policy, National University of Singapore.)