Ease of doing business Current Affairs - 2020

Asia Competitiveness Institute releases Ease of Doing Business Rankings for Indian states

The Asia competitiveness institute (ACI) has released the Ease of Doing Business Rankings for Indian states.

Rankings of Indian States

Andhra Pradesh has topped the Ease of Doing Business rankings. Maharashtra and Delhi came in second and third place respectively.

Performance of Andhra Pradesh

Andhra Pradesh has jumped from the 7th rank in 2016 to the 3rd rank in 2018 in Attractiveness to Investors and the rankings have been increased from 6th to the 1st position in Business Friendliness.

The ranking of Andhra Pradesh dropped from 2nd to the 4th rank in Competitiveness Policies. Overall the ranking of Andhra Pradesh has increased from 5th rank in 2016 to the top spot in 2018.

Scope for Improvement for Andhra Pradesh

The ACI has highlighted the following areas for improvement for Andhra Pradesh in its report:

  • The report states that Andhra Pradesh needs to bridge numerous institutional and infrastructural gaps in order to sustain its position in the future.
  • There was sufficient room for improvement in subenvironments such as facilitating business operations, infrastructure resilience and market
  • The weakest indicators for the state of Andhra Pradesh were Worker density, foreign direct investment per capital, labour productivity, and the illiteracy rate.

Taking note of the findings of the report the Chief Minister of Andhra Pradesh has announced that the state government will consider the observations of the ACI EDB rankings report and strengthen the areas of weaknesses.

 

Prime Minister launches Ease of Doing Business Grand Challenge

Prime Minister Narendra Modi launched Ease of Doing Business Grand Challenge on resolving seven identified Ease of Doing Business problems with use of cutting edge technologies. It was launched during programme organized by PM for interaction with select CEOs from Indian & foreign companies.

Ease of Doing Business Grand Challenge

The objective of this challenge is to tap potential of young Indians, startups and other private enterprises to provide solutions to complex problems using current technology. It is in pursuance of Government’s resolve to make India one of the easiest places to conduct business in the world. Government has made efforts to ensure that India consistently improves its business environment. This challenge is aimed at attracting innovative ideas on artificial intelligence (AI), Internet of Things (IoT), big data analytics, blockchain and other cutting edge technology to reform government processes. The platform for this grand challenge will be on Start Up India portal.

Background

In World Bank’s Doing Business Report (DBR, 2019) released in October 2018, India has recorded jump of 23 positions against its rank of 100 in 2017 to be placed at 77th rank among 190 countries. As result of continued efforts by the Government, India has improved its rank by 53 positions in the last two years and 65 positions in the last four years (2014-18). In 2014, India was ranked 142nd among 190 nations. World Bank’s Ease of Doing Business index ranks 190 countries based on 10 parameters, including starting a business, construction permits, getting electricity, getting credit, paying taxes, trade across borders, enforcing contracts, and resolving insolvency.