Lok Sabha Question No. 347 (UNSTARRED), answered on 2018-02-05
Subject: Ranking of States on Ease of doing Business
Ministry: COMMERCE AND INDUSTRY
Asked by: ARPITA GHOSH

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 347.

TO BE ANSWERED ON MONDAY, THE 5 TH  FEBRUARY,  2018.

## RANKING OF STATES ON EASE OF DOING BUSINESS

## 347.   SHRIMATI ARPITA GHOSH:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) whether  the  Government  proposes  to  rank  the  States  on  ease  of  doing business in the country;
- (b) if so, the details thereof including parameters adopted therefor, State/UTwise;
- (c) the  details  of  the  industrial  growth  and  the  number  of  jobs  created  in  this sector in the country during each of the last three years and the current year, State/UT-wise; and
- (d) the steps taken by the Government for ease of doing business in the country?

## ANSWER

## वाणिज् य एवं उद्योग मंत्रालय में राज् यमंत्री (श्री सी.आर. चौधरी) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI C.R. CHAUDHARY)

- (a)  &  (b): Yes,  Madam.  Department  of  Industrial  Policy  and  Promotion  (DIPP), Ministry of Commerce and Industry, has been working on improving the regulatory environment in States and Union Territories (UTs) in partnership with the State Governments and Union Territory Administration. The ranking of the States/UTs was first released in the year  2015  based  on  98  points  reforms  agenda.  The  Business  Reform Action Plan (BRAP) is in its third year (2017) and 372 action points have been shared with the States/UTs for implementation. The broad parameters include:
- i) Labour Enablers
- Contract Enforcement
- ii)
- iii)
- Registering Property
- iv)
- Inspection Enablers
- v) Single Window System
- vi) Land Availability and Allotment
- vii) Construction Permit Enablers
- viii) Environment Registration Enablers
- ix) Obtaining Utility Permits
- x) Paying Taxes
- xi) Access to Information; and
- xii) Transparency and certain Sector Specific Reforms

Details are available at the BRAP  Portal: http://eodb.dipp.gov.in/. State/UT  Governments  have  submitted  their  responses  on  the  action plan. A total of 9806 reforms have been received out of which 7071 have been evaluated by the Department as on 31 st January, 2018.

- (c): State/(Union Territory) UT-wise data on industrial output and its growth and  estimated  figures  for  'Total  Persons  Engaged'  as  per  available Annual Survey of Industries (ASI) publications based on data collected by National Sample Survey Office (NSSO) during last four years (i.e. ASI 2011-12,  2012-13,  2013-14  and  2014-15)  is  annexed.  Data  for  the period beyond 2014-15 is not available in the compiled form.
- (d): Government  of  India  has  since  2014  aimed  at  creating  a  conducive environment by streamlining the existing regulations and processes and eliminating  unnecessary  requirements and  procedures.  A  detailed plan of  regulatory  reforms  has  been  implemented  not  only  in  the  Central Government Ministries but also in States through the active engagements with State Governments.

Some of the major indicator wise reforms towards easing the business environment undertaken by the Government of India in partnership with the  Governments  of  NCT  of  Delhi  and  Maharashtra  as  assessed  by World Bank's DB Report, 2018 include:-

- i) Starting A Business: Starting a business was made easier and faster by introducing the SPICe (Simplified Proforma for Incorporating Company electronically) form which merged five different procedures i.e. (i) Name reservation, (ii) Company incorporation, (iii) Director Identification Number  (DIN), (iv) Permanent Account Number (PAN) and the (v) Tax Deduction/Collection Account Number (TAN).
2. ii) Resolving Insolvency: The adoption of a new insolvency and bankruptcy  code  introduced  a  reorganization  procedure  for  corporate debtors  and  facilitated  continuation  of  the  debtor's  business  during insolvency proceedings.
3. iii) Paying  Taxes: Paying  taxes  and  other  statutory  contributions  was simplified with the mandatory provision of electronic payment of Employee Provident Fund (EPF) and introducing a set of administrative measures easing compliance with corporate income tax.
4. The  implementation  of  GST  subsumed  a  number  of  indirect  taxes namely (i) Service Tax (ii) Value Added Tax (ii) Central Sales Tax and (iv)  Excise  Duty.  This  will  further  reduce  the  time  spent  on  filing  and

returns.

- iv) Getting Credit: Access to credit was facilitated by adopting a new law on insolvency that provides a time limit and clear grounds for relief to the automatic stay for secured creditors during reorganization proceedings.
- v) Enforcing  Contracts: On  enforcing  contracts  India  introduced  the National  Judicial  Data  Grid,  which  made  it  possible  to  generate  case measurement reports on local courts.
- vi) Protecting Minority Investors: Protection to minority investor is increased by the remedies available in cases of prejudicial transactions between interested parties.
- vii) Construction  Permits: Dealing  with  construction  permits  has  been made less cumbersome by implementing an online system streamlining the  process  in  the  Municipal  Corporations  of  New  Delhi  and  Municipal Corporation  of  Greater  Mumbai.  The  online  system  has  expedited  the process  of  obtaining  a  building  permit  by  reducing  the  number  of procedures and time required to obtain building permits.
- viii) Trading  Across  Borders: Import  border  compliance  time  in  Mumbai was  reduced  by  improving  infrastructure  at  the  Nhava  Sheva  Port. Elimination  of  merchant  overtime  fees  and  increased  use  of  electronic and  mobile  platforms  reduced  export  and  import  border  compliance costs.
- *****

## ANNEXURE ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (c)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 347 FOR ANSWER ON 05.02.2018.

| Sr. No.                                                           | States/UTs                                                        | Total Persons Engaged                                             | Total Persons Engaged                                             | Total Persons Engaged                                             | Total Persons Engaged                                             |
|-------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------------------------------|
| Sr. No.                                                           | States/UTs                                                        | 2011-12                                                           | 2012-13                                                           | 2013-14                                                           | 2014-15                                                           |
| 1                                                                 | Andaman & N. Island                                               | 438                                                               | 502                                                               | 521                                                               | 520                                                               |
| 2                                                                 | Andhra Pradesh                                                    | 1362788                                                           | 503615                                                            | 522057                                                            | 528417                                                            |
| 3                                                                 | Arunachal Pradesh*                                                | NA                                                                | NA                                                                | NA                                                                | 3684                                                              |
| 4                                                                 | Assam                                                             | 180531                                                            | 167835                                                            | 186483                                                            | 195567                                                            |
| 5                                                                 | Bihar                                                             | 126592                                                            | 116396                                                            | 113594                                                            | 146109                                                            |
| 6                                                                 | Chandigarh(U.T.)                                                  | 14893                                                             | 12599                                                             | 13143                                                             | 10594                                                             |
| 7                                                                 | Chattisgarh                                                       | 185985                                                            | 173076                                                            | 166236                                                            | 179324                                                            |
| 8                                                                 | Dadra & Nagar Haveli                                              | 113512                                                            | 97422                                                             | 148522                                                            | 122371                                                            |
| 9                                                                 | Daman & Diu                                                       | 103596                                                            | 128442                                                            | 109462                                                            | 97156                                                             |
| 10                                                                | Delhi                                                             | 116221                                                            | 119001                                                            | 112180                                                            | 122852                                                            |
| 11                                                                | Goa                                                               | 65974                                                             | 55831                                                             | 56684                                                             | 65610                                                             |
| 12                                                                | Gujarat                                                           | 1383773                                                           | 1363628                                                           | 1372669                                                           | 1462206                                                           |
| 13                                                                | Haryana                                                           | 582372                                                            | 566595                                                            | 612419                                                            | 744026                                                            |
| 14                                                                | Himachal Pradesh                                                  | 163440                                                            | 184833                                                            | 194608                                                            | 208781                                                            |
| 15                                                                | Jammu & Kashmir                                                   | 63704                                                             | 60658                                                             | 66829                                                             | 65022                                                             |
| 16                                                                | Jharkhand                                                         | 196793                                                            | 188046                                                            | 187877                                                            | 182085                                                            |
| 17                                                                | Karnataka                                                         | 906473                                                            | 862203                                                            | 927392                                                            | 974022                                                            |
| 18                                                                | Kerala                                                            | 393425                                                            | 380498                                                            | 351662                                                            | 384058                                                            |
| 19                                                                | Madhya Pradesh                                                    | 314838                                                            | 302209                                                            | 322833                                                            | 344031                                                            |
| 20                                                                | Maharashtra                                                       | 1880606                                                           | 1784909                                                           | 1886025                                                           | 1883675                                                           |
| 21                                                                | Manipur                                                           | 5303                                                              | 6084                                                              | 5879                                                              | 7591                                                              |
| 22                                                                | Meghalaya                                                         | 11005                                                             | 11986                                                             | 13434                                                             | 14339                                                             |
| 23                                                                | Nagaland                                                          | 2521                                                              | 3039                                                              | 3746                                                              | 5519                                                              |
| 24                                                                | Odisha                                                            | 284637                                                            | 263651                                                            | 260771                                                            | 262817                                                            |
| 25                                                                | Puducherry                                                        | 55472                                                             | 48527                                                             | 50108                                                             | 46961                                                             |
| 26                                                                | Punjab                                                            | 600041                                                            | 583520                                                            | 602818                                                            | 583316                                                            |
| 27                                                                | Rajasthan                                                         | 474883                                                            | 443027                                                            | 470078                                                            | 487520                                                            |
| 28                                                                | Sikkim                                                            | 8906                                                              | 10278                                                             | 12749                                                             | 13675                                                             |
| 29                                                                | Tamil Nadu                                                        | 1940819                                                           | 1965020                                                           | 2046553                                                           | 2127703                                                           |
| 30                                                                | Telangana**                                                       | NA                                                                | 701110                                                            | 747062                                                            | 692301                                                            |
| 31                                                                | Tripura                                                           | 29933                                                             | 28526                                                             | 29121                                                             | 28871                                                             |
| 32                                                                | Uttar Pradesh                                                     | 864346                                                            | 825537                                                            | 912206                                                            | 883331                                                            |
| 33                                                                | Uttarakhand                                                       | 342385                                                            | 335300                                                            | 386654                                                            | 374861                                                            |
| 34                                                                | West Bengal                                                       | 654276                                                            | 656123                                                            | 645738                                                            | 632470                                                            |
| 35                                                                | All India                                                         | 13430483                                                          | 12950025                                                          | 13538114                                                          | 13881386                                                          |
| ** Since ASI 2012-13 Telangana covered in ASI as a separate state | ** Since ASI 2012-13 Telangana covered in ASI as a separate state | ** Since ASI 2012-13 Telangana covered in ASI as a separate state | ** Since ASI 2012-13 Telangana covered in ASI as a separate state | ** Since ASI 2012-13 Telangana covered in ASI as a separate state | ** Since ASI 2012-13 Telangana covered in ASI as a separate state |

Table-2: State/UT-wise Estimated Output (Rs. Lakhs) and Growth during last four years based on ASI 2011-12 to 2014-15.

| Sr. No.                                             | States/UTs                                          | Total Output (Rs. Lakhs)                            | Total Output (Rs. Lakhs)                            | Total Output (Rs. Lakhs)                            | Total Output (Rs. Lakhs)                            | Growth (%)                                          | Growth (%)                                          | Growth (%)                                          |
|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|
| Sr. No.                                             | States/UTs                                          | 2011-12                                             | 2012-13                                             | 2013-14                                             | 2014-15                                             | 2012- 13                                            | 2013- 14                                            | 2014- 15                                            |
| 1                                                   | Andaman & N. Island                                 | 17966                                               | 16526                                               | 18397                                               | 18400                                               | -8.02                                               | 11.32                                               | 0.02                                                |
| 2                                                   | Andhra Pradesh                                      | 39093376                                            | 20712819                                            | 26268382                                            | 25191880                                            | -47.02                                              | 26.82                                               | -4.10                                               |
| 3                                                   | Arunachal Pradesh*                                  | NA                                                  | NA                                                  | NA                                                  | 134873                                              | NA                                                  | NA                                                  | NA                                                  |
| 4                                                   | Assam                                               | 5292766                                             | 4985210                                             | 5761714                                             | 6176083                                             | -5.81                                               | 15.58                                               | 7.19                                                |
| 5                                                   | Bihar                                               | 6016746                                             | 5168030                                             | 5529620                                             | 5875914                                             | -14.11                                              | 7.00                                                | 6.26                                                |
| 6                                                   | Chandigarh(U.T.)                                    | 750210                                              | 605139                                              | 658424                                              | 458239                                              | -19.34                                              | 8.81                                                | -30.40                                              |
| 7                                                   | Chhattisgarh                                        | 9301415                                             | 10352834                                            | 10599069                                            | 11977648                                            | 11.30                                               | 2.38                                                | 13.01                                               |
| 8                                                   | Dadra & Nagar Haveli                                | 8900765                                             | 7597779                                             | 9596018                                             | 12889718                                            | -14.64                                              | 26.30                                               | 34.32                                               |
| 9                                                   | Daman & Diu                                         | 4218140                                             | 4458749                                             | 4110609                                             | 3472979                                             | 5.70                                                | -7.81                                               | -15.51                                              |
| 10                                                  | Delhi                                               | 4527272                                             | 5347872                                             | 5901429                                             | 6348457                                             | 18.13                                               | 10.35                                               | 7.57                                                |
| 11                                                  | Goa                                                 | 4210182                                             | 3659659                                             | 3379150                                             | 4654089                                             | -13.08                                              | -7.66                                               | 37.73                                               |
| 12                                                  | Gujarat                                             | 99841317                                            | 111639522                                           | 123064181                                           | 127012504                                           | 11.82                                               | 10.23                                               | 3.21                                                |
| 13                                                  | Haryana                                             | 24395636                                            | 27807701                                            | 29640333                                            | 36748456                                            | 13.99                                               | 6.59                                                | 23.98                                               |
| 14                                                  | Himachal Pradesh                                    | 8079659                                             | 9561121                                             | 9954730                                             | 12320881                                            | 18.34                                               | 4.12                                                | 23.77                                               |
| 15                                                  | Jammu & Kashmir                                     | 2242919                                             | 2460187                                             | 2337180                                             | 2406835                                             | 9.69                                                | -5.00                                               | 2.98                                                |
| 16                                                  | Jharkhand                                           | 10305316                                            | 10851206                                            | 10779440                                            | 12108719                                            | 5.30                                                | -0.66                                               | 12.33                                               |
| 17                                                  | Karnataka                                           | 33767314                                            | 39950881                                            | 44469973                                            | 46186619                                            | 18.31                                               | 11.31                                               | 3.86                                                |
| 18                                                  | Kerala                                              | 11158670                                            | 12179092                                            | 13105441                                            | 12866371                                            | 9.14                                                | 7.61                                                | -1.82                                               |
| 19                                                  | Madhya Pradesh                                      | 15658407                                            | 16392982                                            | 17208597                                            | 18252994                                            | 4.69                                                | 4.98                                                | 6.07                                                |
| 20                                                  | Maharashtra                                         | 100537793                                           | 102203201                                           | 106597134                                           | 111961821                                           | 1.66                                                | 4.30                                                | 5.03                                                |
| 21                                                  | Manipur                                             | 36324                                               | 34912                                               | 37752                                               | 37736                                               | -3.89                                               | 8.13                                                | -0.04                                               |
| 22                                                  | Meghalaya                                           | 325326                                              | 349265                                              | 381377                                              | 431852                                              | 7.36                                                | 9.19                                                | 13.23                                               |
| 23                                                  | Nagaland                                            | 57932                                               | 58971                                               | 39707                                               | 44889                                               | 1.79                                                | -32.67                                              | 13.05                                               |
| 24                                                  | Odisha                                              | 11541915                                            | 11369603                                            | 12237946                                            | 13117979                                            | -1.49                                               | 7.64                                                | 7.19                                                |
| 25                                                  | Puducherry                                          | 2048180                                             | 1975300                                             | 2007285                                             | 1908970                                             | -3.56                                               | 1.62                                                | -4.90                                               |
| 26                                                  | Punjab                                              | 16293150                                            | 17103386                                            | 18210659                                            | 18992516                                            | 4.97                                                | 6.47                                                | 4.29                                                |
| 27                                                  | Rajasthan                                           | 19045480                                            | 19938133                                            | 21469179                                            | 22141508                                            | 4.69                                                | 7.68                                                | 3.13                                                |
| 28                                                  | Sikkim                                              | 556220                                              | 631265                                              | 710303                                              | 802006                                              | 13.49                                               | 12.52                                               | 12.91                                               |
| 29                                                  | Tamil Nadu                                          | 60963540                                            | 61952533                                            | 67695733                                            | 70038085                                            | 1.62                                                | 9.27                                                | 3.46                                                |
| 30                                                  | Telangana**                                         | NA                                                  | 15614886                                            | 17133649                                            | 15975404                                            | NA                                                  | 9.73                                                | -6.76                                               |
| 31                                                  | Tripura                                             | 122682                                              | 136302                                              | 131623                                              | 151764                                              | 11.10                                               | -3.43                                               | 15.30                                               |
| 32                                                  | Uttar Pradesh                                       | 33265470                                            | 36132854                                            | 41126757                                            | 42309844                                            | 8.62                                                | 13.82                                               | 2.88                                                |
| 33                                                  | Uttarakhand                                         | 14474752                                            | 16627937                                            | 17725377                                            | 18984940                                            |                                                     | 6.60                                                | 7.11                                                |
| 34                                                  | West Bengal                                         | 23320091                                            | 24718679                                            | 27637949                                            | 26380232                                            | 14.88                                               | 11.81                                               | -4.55                                               |
| 35                                                  | All India                                           | 570366932                                           | 602594536                                           | 655525116                                           | 688381205                                           | 6.00 5.65                                           | 8.78                                                | 5.01                                                |
| *Since ASI 2014-15 Arunachal Pradesh covered in ASI | *Since ASI 2014-15 Arunachal Pradesh covered in ASI | *Since ASI 2014-15 Arunachal Pradesh covered in ASI | *Since ASI 2014-15 Arunachal Pradesh covered in ASI | *Since ASI 2014-15 Arunachal Pradesh covered in ASI | *Since ASI 2014-15 Arunachal Pradesh covered in ASI | *Since ASI 2014-15 Arunachal Pradesh covered in ASI | *Since ASI 2014-15 Arunachal Pradesh covered in ASI | *Since ASI 2014-15 Arunachal Pradesh covered in ASI |

*********