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EASE of DOING BUSINESS AMONG INDIAN STATES: Suggestive Measures

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EASE of DOING BUSINESS AMONG INDIAN STATES: Suggestive Measures EASE OF DOING BUSINESS AMONG INDIAN STATES: Suggestive Measures September 2016 PHD RESEARCH BUREAU PHD CHAMBER OF COMMERCE AND INDUSTRY PHD House, 4/2 Siri Institutional Area, August Kranti Marg New Delhi 110016 Phone: 91-11-49545454, Fax: 91-11-26855450, 26863135 Email: [email protected] Website: www.phdcci.in Ease of Doing Business among Indian States: Suggestive Measures PHD Research Bureau 2 Ease of Doing Business among Indian States: Suggestive Measures From President’s Desk We congratulate the state governments for exhibiting different and diverse potential in various areas of the industrial and socio-economic developments. The role of states is expected to be highly crucial in sustaining the overall economic growth of the country in the coming times. The Indian manufacturing sector is on a high growth trajectory, it sets to contribute 25 percent to the GDP by 2025. Notably, the sector Dr. Mahesh Gupta contributes 66 percent to the nation’s exports and 12% of the total employment in the country. Though predominantly some states are agrarian in nature, but the industrial sector has also emerged as a significant contributor in its economic and social development. The states are now on their way to rapid industrialization through coordinated development of Small, Medium and Large scale enterprises. Also, at the socio economic front, the states have taken effective measures towards the implementation reforms in healthcare, education and other socio-economic segments. During the recent years, the states have taken large scale initiatives to promote the thriving sectors like tourism and industry and initiating public-private partnerships (PPP). Many states are also known for their efforts in the area of skill development. The states are also focusing on strengthening their infrastructure base and making the business environment more conducive to industrial growth. Some states have already developed good IT services and transport infrastructure. Going ahead, the collective efforts of the states would contribute to the growth of the Indian economy, the states must therefore, lay emphasis on attracting private and foreign investments in manufacturing sector in particular and industries in general to lay the solid foundation for the growth of the country. While at the same time it is highly essential for the states to focus on the comparative advantages of their respective strengths and specializations and should also adopt best practices of each other’s strengths. I firmly believe that the recent initiatives undertaken by the respective state governments have taken a leap towards an all inclusive growth and development of their respective states. PHD Research Bureau 3 Ease of Doing Business among Indian States: Suggestive Measures From Senior Vice President’s Desk The manufacturing sector today has emerged as an essential component for the inclusive and equitable growth of the economy. It is the ‘sector of the current decade’, in terms of generating employment, skill development, bringing in FDI, enhancing trade and boosting strategic partnerships. The state’s role towards building the required infrastructure for Mr. Gopal S. Jiwarajka smooth running of business and the overall infrastructure development within the country is the key towards an efficient manufacturing sector for a strong and sustainable economic growth. At this juncture, it is important to realise that infrastructure development leads to reduction in transaction costs and efficiency in production process which, in turn, improves the competitiveness of businesses and makes the country more attractive to foreign investors. The states must provide social and physical infrastructure for agriculture and supply chain and connectivity of rural-urban areas along with quality physical infrastructure for manufacturing sector as well so as to ensure that the private investments are followed. While an another important element of ‘Ease of doing business’ is good governance .The role of states in promoting governance is immense since the Fourteenth Finance Commission has considerably enhanced the fiscal autonomy of the states, better enabling them to make their own choices in public action. Going ahead, skill development is an area where states should come forward with greater zeal and enthusiasm to reduce the gap between academia and industry in order to deploy abundant workforce in the productive sectors of the economy. I strongly believe that the overall smooth functioning and the quality of governance at state level can stimulate growth by making the policy environment more business friendly. PHD Research Bureau 4 Ease of Doing Business among Indian States: Suggestive Measures From Vice President’s Desk Since the advent of economic reforms in 1991, the states have played a very crucial role in the overall enhancement of economic activities of the country and have placed India at a much higher level with the increased participation in world GDP. Though endowed with diverse natural resources, culture, language and environment of all the states are progressing in a positive Mr. Anil Khaitan direction. It gives us great pleasure that all the states are specialized in one aspect or the other for the overall socio- economic development of the country. Needless to mention, the industrial sector has contributed towards the creation of employment opportunities, generation of income and overall economic growth. However for the sector to grow at a faster rate, the states should serve the sector with skilled manpower and good industrial infrastructure. Going forward, the states should promote private sector investments and encourage the creation of long term partnerships in industries with lucrative policy benefits. Further, emphasis needs to be provided to the development of infrastructural facilities, especially the rural and farm infrastructure, to ensure expansion of employment opportunities and rapid economic growth. I am hopeful that the relevant policy formulations and reforms will bring about a paradigm shift in the economic environment of the states, culminating into the all inclusive development of the country to propel India’s economy to greater heights. PHD Research Bureau 5 Ease of Doing Business among Indian States: Suggestive Measures From Chairman, State Development Council & Former President, PHD Chamber The states form the core of the federal structure in India and for any development initiative to succeed; the role played by states assumes immense significance. In order to improve the ease of doing business in the country, the Modi government has assigned priority to infrastructure and skill development along with efficiency in governance. Mr. Salil Bhandari To deliberate on these issues, PHD Chamber’s Chief Secretaries’ Conclave on ‘ACCELERATING EASE OF DOING BUSINESS TO NEXT ORBIT’. The Chief Secretary’s Conclave is a prestigious flagship event under the PHD Chamber’s State Development Council. The objective of the conclave is to foster the spirit of cooperative federalism so that union and state governments come on a platform to forge a common national agenda for development with thrust on empowerment of the states of India. The government has stimulated the investment climate in the country by introducing a transparent and liberal FDI policy, easing regulatory restrictions in initiating businesses, fast tracking of infrastructure projects, initiating tax reforms culminating with the passage of the GST along with ‘ Make in India’, to boost the manufacturing sector. With the aim to decentralization of power, the setting up of NITI Aayog to work on common national agenda with focus on states is a commendable step. This elaborate research report brought out by PHD Research Bureau, PHD Chamber of Commerce and Industry and is an excellent attempt in understanding the issues concerning ease of doing business, skilling, infrastructure development and governance in India pivotal for its economic growth. PHD Research Bureau 6 Ease of Doing Business among Indian States: Suggestive Measures From Secretary General’s Desk PHD Chamber has come up with a report on ‘Ease of doing business among Indian States: Suggestive measures’. This study brings together the profiles of the socio- economic developments of all Indian states and highlights the suggestive measures for the participating states. Through the study it has been observed that Indian states have made significant progress in various spheres over the years, having developed a sound base for the growth of Mr. Saurabh Sanyal manufacturing industry. We take this opportunity to express our gratitude and respect to our office bearers Dr. Mahesh Gupta, President, Shri Gopal Jiwarajka, Senior Vice President and Shri Anil Khaitan, Vice President for their constant support. We would like to appreciate the efforts of experts, officials and members from the participating states for providing their valuable inputs and deep insights while preparing this report. I commend and appreciate the tireless effort of PHD Research Bureau team led by Dr. S P Sharma, Chief Economist & Director Research, Ms. Surbhi Sharma, Senior Research Officer, Ms. Mahima Kaushal, Research Associate, Ms. Areesha, Research Associate and Ms. Smriti Sharma, Research Assisstant for producing this report. Last but not the least, we would like to place on record the support and services of Mr. Hariom Kuthwaria, Graphic Designer, PHD Chamber who collaborated in producing this work. PHD Research Bureau 7 Ease of Doing Business among Indian States: Suggestive Measures PHD Research Bureau 8 Ease of Doing Business among Indian States: Suggestive Measures Contents S.No. Topic Page No. 1. Executive Summary 10 - 11 2. Andhra Pradesh 12 - 13 3. Arunachal Pradesh 14 - 15 4. Bihar 16 - 17 5. Chhattisgarh 18 - 19 6. Haryana 20 - 21 7. Madhya Pradesh 22 - 23 8. Punjab 24 - 25 9. Rajasthan 26 - 27 10. Uttarakhand 28 - 29 11. Uttar Pradesh 30 - 31 12. Himachal Pradesh 32 13. Assam 33 14. Goa 34 15. Gujarat 35 16. Jammu and Kashmir 36 17. Jharkhand 37 18. Karnataka 38 19. Kerala 39 20. Maharashtra 40 21. Manipur 41 22. Meghalaya 42 23. Mizoram 43 24. Delhi 44 25. Tamil Nadu 45 26. Nagaland 46 27. Odisha 47 28. Telangana 48 29. West Bengal 49 30.
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