January 2017 News
Ease Of Doing Business: JK Fares Poorly In World Bank Rating15 January 2017
Srinagar: The 2016 Economic Survey report has noted that Jammu and Kashmir fares poorly in the World Bank rating of Indian states in terms of ease of doing business (EODB) and entrepreneurs face constraints in getting different permissions including construction permits to start the business. The World Bank findings are part of the Economic Survey report, which was tabled in the legislative assembly recently. The global financial institution has worked out the EODB index and higher ranking (a lower numerical value) indicates simpler regulations for businesses. The parameters for the ranking include the one for starting a business, dealing with construction permits, getting electricity, registering property, getting credit and enforcing contracts. According to the World Bank's Ease of Doing Business report 2016, India now ranks at 130 out of 189 countries, moving up four places from last year's ranking of 134. India improved its position on three counts-starting a business, getting construction permits and accessing electricity-in the latest edition of EODB index, but saw its performance worsen with regard to two parameters-accessing credit and paying taxes. As per the report, J&K ranks 29th among 32 states which were assessed, with an overall score of 0.30 percent, thus making it among 'worst states to do business with'. On the other hand, Gujarat tops the list, by attaining rank 1 in the status of implementation of reforms agenda for the year 2015 while as only Meghalaya (rank 30) and Nagaland (rank 31), are behind J&K. Apart from Gujarat, other best performing states in implementation of reforms are Andhra Pradesh (rank 2), Jharkhand (3rd), Chhattisgarh (4-th), Madhya Pradesh ((5-th), Rajasthan (6-th), Orissa (7-th), Maharashtra (8-th), Karnataka (9-th) and Uttar Pradesh (10-th). J&K is ahead in implementation of reforms with neighbouring states including Haryana (rank 14), Delhi (rank 15), Punjab (rank 16), and Himachal Pradesh (rank 17), showing better performance. The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, in partnership with the World Bank Group has also released the results of the assessment of state implementation of business reforms 2015-16. The results demonstrate that states have increasingly risen to address the challenge of making it easier to do business. The national implementation average stands at 48.93%. 'J&K's rank has, however, slipped to bottom rank 31 along with 5 states and Union Territories (UTs) of Arunachal Pradesh, Chandigarh, Meghalaya, Andaman & Nicobar Island and Lakshadweep,' notes the Economic Survey report.