Ease of Doing business among Indian states improving rapidly: PHD Chamber

At the socio economic front the states have taken effective measures towards

the implementation of reforms in healthcare, education and basic physical

and social infrastructure. The states are now on their way to rapid

industrialization through coordinated development of Small, Medium and Large

scale enterprises, according to the study conducted by PHD Research Bureau,

research arm of PHD Chamber of Commerce and industry.

The study titled as Ease of Doing Business among Indian States: Suggestive

Measures has been released by Shri Pradeep Kumar Sinha, Cabinet Secretary,

Government of India in a programme Accelerating Ease Of Doing Business to

the next orbit, on 17th September 2016.

As states play a pivotal role in the overall development of the Indian

Economy, these are now dismantling barriers in production process such as

land, labour, capital and entrepreneurship and contributing  in a massive

way towards infrastructure building and industrialisation, said the study.

The recent breakthrough in the implementation of GST is commendable which

will reduce the barriers between states and will make the country a common

market. A wider tax base and better compliance will boost overall economic

growth of the country, said Dr. Mahesh Gupta, President, PHD Chamber at the

release of the study.

According to the study, though predominantly some states are agrarian in

nature, but the industrial sector in the states has also emerged as a

significant contributor in their economic and social development. Now states

offer favorable environment for attracting industrial investments through

investor friendly policies and better infrastructural support, said Dr.

Mahesh Gupta

The states have developed good infrastructure for promoting the thriving

sectors like tourism and IT industry with various lucrative public-private

partnerships (PPP), said Dr. Gupta

The states are focusing on strengthening their infrastructure base and

making the business environment more conducive to industrial developments.

Many states are known for their efforts in the area of skill development and

good governance; also many states have shifted their focus towards disaster

management techniques, he said

Going ahead, the role of states is expected to be increasingly more critical

in sustaining the overall development of the country in coming times, said

the study

Several challenges to their growth, such as easing the supply side

constraints in the economy, upskilling the workforce and increasing

manufacturing competitiveness are still the major areas of concern, said the

study.

The state policies should be focusing on diversifying the beneficiaries of

the socio economic development programmes to ensure an all inclusive growth

in the country; the states should also focus on the comparative advantages

of their respective strengths and specializations and should also adopt best

practices of each other's strengths, suggested the study.

In a nutshell, the study said that the reforms undertaken by the state

governments are expected to bring out strong outcomes which would pave the

way for strong and sustainable economic growth of the country in the coming

times. With the continuous increase in per capita income of the states,

there exist a tremendous potential for expansion of consumer markets and

enhanced employment opportunities with expanding production possibility

frontiers