State Investment Potential Index

State Investment Potential

Que1. Which among the following state topped in N-SIPI-2018.?
(a)Delhi
(b)Uttar Pradesh
(c)Maharashtra
(d)Kerala
Ans. (a)
Related facts:

  • On August 3, 2018, The National Council of Applied Economic Research, NCAER, released State Investment Potential Index-2018.
  • It is third edition of NCAER Sate Investment Potential Index (N-SIPI) covering 20 states and Delhi.
  • The index does not include the six North- Eastern states, Arunachal Pradesh, Manipur, Meghalaya, Mizoram Nagaland and Tripura, as well as Sikkim, Goa and Jammu & Kashmir.
  • NCAER launched the N-SIPI series in March 2016 and the second N-SIPI 2017 was released in July 2017.
  • The index ranks competitiveness of states on six pillars: Land, Labour, Infrastructure, Economic climate, Political stability & Governance and Business perceptions.
  • These Pillars classified under following four broad categories: Factor Driven (labour & land), Perceptions Driven (Survey based responses), Efficiency Driven (Infrastructure) and Growth Driven (Economic climate, Political stability & Governance).
  • NCAER contacted 1,049 business enterprises of different sizes in manufacturing and services sector for the survey.
  • Delhi, Tamil Nadu, Gujarat, Haryana, Maharashtra and Kerala are the top six most favorable states for business investment.
  • Delhi jumps one spot to lead N-SIPI 2018; Gujarat loses its first spot and slips to the third position; Maharashtra and Tamil Nadu move into the top five.
  • Delhi tops the rankings under the third and fourth pillars on infrastructure and economic conditions in the state.
  • Tamil Nadu comes in second place and tops the rankings in labour and governance.
  • Assam, Jharkhand and Bihar are ranked among the least favorable states for investment, they are ranked higher under individual pillars, with Bihar doing better in the labour pillar, Assam in the land pillar, and Jharkhand in the economy pillar.
  • Chhattisgarh and Karnataka maintain their ranks from last year at the 14th and 9th positions, respectively.
  • Uttar Pradesh ranked 18 in N-SIPI-2018.

References:
http://www.ncaer.org/uploads/photo-gallery/files/1533372388N%20SIPI%202018%20Press%20Release.pdf
http://www.ncaer.org/event_details.php?EID=232