Andhra Pradesh is the best state in terms of Ease of Doing Business (EoDB) in the country, revealed a finding by Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry.

While AP topped the list, neighbouring Telangana came in second. Haryana, Jharkhand and Gujarat were ranked third, fourth and fifth respectively.

The aim of the exercise, jointly conducted by DIPP with World Bank, is to improve delivery of various Central Government regulatory functions and services in an efficient, effective and transparent manner.

According to DIPP, states and UTs have conducted reforms to ease their regulations and systems in areas such as labour, environmental clearances, single window system, construction permits, contract enforcement, registering property and inspections.

States and UTs have also enacted Public Service Delivery Guarantee Act to enforce the timelines on registrations and approvals.

States were ranked based on a combined score of ‘Reform evidence’ and ‘Feedback’. While reform evidence score is based on evidences uploaded by the States and UTs, the Feedback score, introduced for the first time by DIPP, is based on the feedback of the intended recipients of the reform. It checks whether the reforms have actually reached ground level.

DIPP said that face-to-face interviews of over 5000 actual users comprising businesses, architects, lawyers and electrical contractors were conducted on 78 reforms out of 372 that were identified for the survey.

DIPP also identified partner States to mentor another State and UT to facilitate implementation of reforms in States and UTs needing support. Telangana and West Bengal held extensive workshops to support Tripura and Nagaland, respectively.

The State reform exercise under Ease of Doing Business in India is creating a lot of interest in other countries like Brazil, South Africa and Indonesia which proves that such reforms are imperative for improving the business and regulatory environment.