The Indian central government unveiled the Business Reform Action Plan (BRAP) 2020 report on June 30, showcasing the seven Indian States for Investment, known for their favorable business environments. As per the report, Andhra Pradesh, Gujarat, Haryana, Karnataka, Punjab, Telangana, and Tamil Nadu stood out as leading states based on parameters related to business operations. This fifth edition of the report heavily relies on feedback from users at the ground level in various languages, providing an accurate depiction of each state’s business climate. Noteworthy mentions go to Andhra Pradesh (ranking first) and Telangana (ranking third), which also performed well in the 2019 BRAP report, highlighting their commitment to enacting crucial policy reforms. Such reports hold significant value for investors as they offer tangible data that showcases how these states maintain consistency and reliability in implementing proposed reforms.
Released on Thursday, June 30 the BRAP 2020 report assesses states progress across 301 reform action points. Unlike editions that followed an evidence based system this evaluation is based on feedback gathered by the Department, for Promotion of Industry and Internal Trade (DPIIT).
Which Indian states rank highest in terms of business environments?
The BRAP 2020 report classifies states into four groups based on their advancement, in implementing reforms to improve the ease of doing business:
- Leading States: Andhra Pradesh, Gujarat, Haryana, Karnataka, Punjab, Tamil Nadu and Telangana.
- Progressing States: Himachal Pradesh, Madhya Pradesh, Maharashtra, Odisha, Uttarakhand and Uttar Pradesh.
- Aspiring States: Assam, Chhattisgarh, Goa, Jharkhand, Kerala, Rajasthan and West Bengal.
- Emerging Business Hubs: Nicobar Islands, Bihar Chandigarh, Daman & Diu, Dadra & Nagar Haveli Delhi, Jammu & Kashmir, Manipur, Meghalaya, Nagaland, Puducherry and Tripura.
The BRAP 2020 report assesses 301 reform points across 15 business areas such as access, to information, single window system, labor laws the environment land administration property transfers and utility permits.
Since 2014,the DPIIT has been evaluating the ease of doing business in states. Previous reports were published in 2015,2016 2017 18. 2019.
In the September 2020 release of the 2019 report Andhra Pradesh topped the rankings, followed by Uttar Pradesh, Telangana, Madhya Pradesh and Jharkhand.
What updates can be found in the version of the BRAP report for 2020?
In the report state governments concentrated on improving the reform process by monitoring 118 reforms.
The report kept tabs on sector changes, in nine sectors through 72 action points. This time the reform agenda expanded to cover areas like trade licenses, healthcare, legal metrology, cinema halls, hospitality fire no objection certificates (NOC) telecom, movie shooting and tourism, for the time.
What is the purpose of the tracking system, in the report?
The report is designed to boost investor trust, in India foster a business atmosphere and enhance the business environment across the country by motivating states and union territories to compete in implementing reforms.
In contrast to reports that ranked states this updated version adopts a learning strategy. It categorizes states with reform progress, into groups to showcase successful approaches and promote progress.
Why do reports, on the ‘ease of conducting business matter to investors?
To develop a plan, for expanding into India foreign companies must understand the characteristics of each Indian state in detail. Reports on business ease can serve as a tool for monitoring state performance on indicators and assessing the implementation of reforms.
Of viewing India as an entity it is advantageous for overseas investors to adopt a focused strategy. This entails comparing regions to assess if their industrial environments, logistical capabilities, infrastructure and administrative procedures align with the companys requirements and contribute to maintaining operational expenses. Approaches that work well in one state may not necessarily be applicable in another.
Prior to venturing into the market companies should:
- Conduct an analysis to identify optimal establishment options.
- Examine governmental stability, industrial regulations, business friendly environment and transparency levels.
- Evaluate the economic potential, market size and operational environment across different states and cities.
- Engage with state industrial bodies to gain insights, into available incentives.
- Research. Local enterprises that can offer market connections.
