Assessment of State Implementation of Business Reforms Released

Evaluation of the implementation of the business improvement report

Ques: 14 September, 2015 which of the state ranked highest in the “Obtaining Infrastructure Related Utilities” list?

a. Gujrat
b. Andhra Pradesh
c. Jharkhand
d. Chhattisgarh

Ans: a

Related facts:

  • September 4, 2015 a report titled “Assessment of State Implementation of Business Reforms” was released.
  • This report captures the findings of an assessment of reform implementation by states.
  • The report was conducted jointly by the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce & Industry, the World Bank Group and KPMG as the knowledge partner, the Confederation of Indian Industry(CII) and the Federation of Indian Chambers of Commerce and Industry (FICCI).
  • This assessment is the first of its kind.
  • This has been conducted to take stock of reforms implemented by states in the period January 1 to June 30, 2015 based on the 98-point action plan for business reforms agreed between DIPP and State and Union Territory governments on December 29, 2014.
  • The report assesses implementation status of reform measures across the following eight areas
    • Setting up a business
    • Allotment of land and obtaining construction permit
    • Complying with environment procedures
    • Complying with labour regulations
    • Obtaining infrastructure related utilities
    • Registering and complying with tax procedures
    • Carrying out inspections
    • Enforcing contracts
  • It is noted that Gujrat is in the first place with 71.14% of the implementation of measures to improve the situation.
  • In this report, Andhra Pradesh (12%), Jharkhand (63.09%), Chhattisgarh (62.45%) and Madhya Pradesh (62%) state find the second, third, fourth and fifth place respectively.
  • Important to know that Uttar Pradesh find 10th place with 47.37%.
  • Rajasthan, Orissa, Maharashtra, Karnataka are in the sixth, seventh, eighth, and ninth place respectively.
  • Across the country, states have made good progress in general tax reforms like mandating e-registration for VAT and CST; allowing online payment and filing of returns for various state taxes; providing e-filing support through service centres and helplines; and risk-based tax compliance inspections.
  • 29 states allow VAT to be paid online, and 28 states allow CST to be paid online.
  • While most states allow e-filing of VAT and CST, 21 states have established helplines for users.
  • 25 states have defined timelines for VAT registration and 21 have defined timelines for CST registration.
  • Punjab(48%) and Andhra Pradesh (78.57%) find first and second place respectively in the business establishment.
  • In the area of Land allocation and obtaining Construction permits, Madhya Pradesh (73%) and Gujarat (72.41%) are ranked first and second respectively.
  • Complying with Environmental Procedures, Gujarat (100%) and Andhra Pradesh (19%) became the first and second State respectively.
  • Complying with the labor Laws, Jharkhand (100%) and Gujarat (47%) find the first and second place respectively.
  • Obtaining Infrastructure utilities, Maharashtra (89%) and Gujarat (75%) were in the first and second place respectively.
  • Registration and Tax Compliance procedures, Karnataka (73%) and Andhra Pradesh (90.63%) were at the first and second place respectively.
  • Carrying out Inspection field, Jharkhand (72%) and Gujarat (74%) find the first and second place respectively.
  • Enforcing the Contract, Maharashtra (56%) and Madhya Pradesh (44.44) were ranked first and second respectively.


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