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The new methodology of user feedback system dragged down the performance of several states as their claims did matched with feedback from users. (Bloomberg)
The new methodology of user feedback system dragged down the performance of several states as their claims did matched with feedback from users. (Bloomberg)

Andhra Pradesh again leads ease of doing business ranking of states, UTs

  • Ranking of Haryana, Karnataka and Odisha dropped sharply as the latest Business Reform Action Plan is based on user feedback, ignoring reform claims by states. UP vaulted to 2nd position from 12th under the new methodology.

NEW DELHI: Andhra Pradesh has topped the ranking of states in the central government’s latest ease of doing business survey for 2019 for the second consecutive year, while the new methodology of user feedback system dragged down the performance of several states as their claims did not align with feedback from users.

Several states such as Haryana (16th from 3rd), Karnataka (17th from 8th) and Odisha (29th from 24th) saw their ranks dip significantly as the latest Business Reform Action Plan is based on user feedback, ignoring reform claims by state governments. Ranking of Uttar Pradesh vaulted to second position from 12th in the previous round under the new methodology while Telangana dropped to 3rd in the rankings from second position a year ago.

The ranking, which was introduced in 2015 with 285 action points, expanded to 372 measures in 2017-18 spread across 12 areas, including registering property, paying taxes and labour regulation enablers.

While in the first two years, the ranking was based only on evidence provided by state governments, The Department of Industrial Policy & Promotion (DIPP) in 2017-18 introduced user feedback for 78 action points from architects, lawyers and contractors among others to weigh whether reform measures are reaching the users or not. For 2019, the performance of states and Union territories have been measured through more than 180 indicators based on user feedback.

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