Which is the best state for business in India?

Sep 16, 2015, 08:50 am

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Modi's Gujarat ranks first…BJP-ruled states feature at top
Indian Prime Minister Narendra Modi (second from left) meets Indian finance and business tycoons at the meeting titled "Recent Global Events: Opportunities for India" at his residence in New Delhi on Sept. 8./ Photo: Official website of Prime Minister of India

By Ha Man-joo, India correspondent, AsiaToday - The best Indian state for conducting business is governed by ruling Bharatiya Janata Party (BJP). A report titled 'Assessment of State Implementation of Business Reforms' released by the World Bank on Monday features BJP-ruled states at the top. The top five states are ruled by either BJP or BJP-ally NDA.

Gujarat, the state Prime Minister Narendra Modi ran for 13 years until 2014, emerged as number 1 state in ease of doing business, according to the report. Andhra Pradesh is the second best state, followed by Jharkhand, Chhattisgarh, and Madhya Pradesh. With the exception of Andhra Pradesh ruled by NDA-ally Telugu Desam Party (TDP), four out of the best five states fall under the jurisdiction of BJP.

Congress-governed states scored poorly on business parameters. Karnataka and Kerala, each ruled by the Indian National Congress (INC), were placed at 9th and 18th respectively.

Monday's report indicates that the economic policies promoted by PM Modi since he took office in May 2014, has influenced more on states ruled by the BJP and its allies. BJP and INC are in conflict with Modi' key economic policies, including Goods and Service Tax (GST) bill, land expropriation law and labor law reform.

Rajasthan, where an exclusive Korean industrial zone is setting up, took the sixth place. Madhya Pradesh, which was placed at the fourth spot, is planning to suggest a proposal of setting up an exclusive Korean industrial zone when chief minister Shivraj Singh Chouhan makes his visit to Korea in the end of the month. Punjab, which has already announced to set up 'Korean industrial park', was placed at 16th place.

Interestingly, Punjab took the first spot among states in terms of ease to set up businesses. Punjab is running single window online system where a corresponding department handles business registration and license acquisition process within 30 days.

Uttar Pradesh, where Samsung Electronics, LG Electronics, and many other Korean companies are at, took the 10th spot, while Tamil Nau, where Hyundai and Samsung's plants are located at, took the 12th spot.

India has been placed at 142nd spot among 182 countries in the World Bank's report. Modi's government is taking several steps to bring India into the top 50 ranks.

#Modi #Gujarat #World Bank #business #BJP 
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