World Bank’s latest study on ranking Indian states on “Ease of doing business” ranks Andhra Pradesh at no 2, right behind Gujarat which ranks at the top. Gujarat gets 71.14% and Andhra follows closely with 70.12%. Telangana is at #13, Tamil Nadu #12, Karnataka #9 and Maharashtra is at #8.
The study takes into account 8 vital parameters to arrive at the rankings. They are in ease of
- Setting up a business
- Land allotments
- Environmental clearances and compliance
- Labour compliance
- Obtaining utility connections
- Tax registrations and compliances
- Carrying out inspections and finally
- Enforcing contracts.
Gujarat is way ahead of Andhra on environmental clearances ( though to be taken with a pinch of salt as that could also mean environmental negligence) and land allotments. Andhra is way ahead of Gujarat on ease of setting up business, tax registrations and compliance. Enforcing contracts is a huge problem all over India with most states faring miserably. Andhra and Gujarat are no exception in this matter though Gujarat is marginally better.
Readers not satisfied with the above summary but want to spend a few hours on understanding the whole report and all states may DOWNLOAD A COPY OF THE FULL REPORT HERE.
The following is the screenshot of the Andhra page in the report. (Click to zoom)