Time for TS to take WB rank in stride

Telangana has done a commendable job in enforcing contracts by filling up more than 80 per cent vacant district court judge positions. In the case of infrastructure, only two documents are required for electricity connections and pollution control certificate is no longer a prerequisite in the State. But, the same is not appreciated by the survey. It doesn’t help to question the credibility of World Bank. There is a scope for vast improvement and a need to speed up reforms, not taking the state-of-the-art infrastructure in Hyderabad for granted

At the behest of the government, the World Bank has prepared the list of the States of India on the basis of ‘Ease of Doing Business’ index. While Andhra Pradesh has been ranked number two in the country with 70.12%, next to Gujarat (71.14%), Telangana has been ranked 13, with a 42.45% score. The ranking was based on an assessment on 98 parameters.

Small States like Jharkhand and Chhattisgarh surprised all with 3rd and 5th positions respectively. The exercise of rankings, provided in the ‘Assessment of State Implementation of Business Reforms,’ is aimed at promoting competition among States with a view to improving business climate to attract domestic as well as foreign investments.

Both Andhra Pradesh and Telangana have completed more than one year after formation of new States. The survey is aimed at to reflect upon what’s working and what’s not for businessmen looking to invest. The survey generated huge disappointment as well as well as celebrations all over the country.

While the exercise was aimed at promoting business climate among the States and UTs to undertake reforms, what is not good for the States is to trade charges on the objectivity of the ranking. This is an opportunity to take stock of the situation rather than worry about why the rank is so low.

The assessment was made, based on data collected through a structured questionnaire of 285 questions, and the data was evaluated in detail jointly to ensure standard yardstick applied for all States.

The assessment took stock of the reforms implemented by States in the period January 1 to June 30, 2015 – a period which coincided with the fiscal consolidation of most states as they grapple with state finances as well as plans to raise resources for the new financial year.

The initiative was part of the “Make in India” campaign started by the Central government to create growth, employment, reduce corruption and spawn ‘Make in India’ initiatives across entrepreneurs. At present, India’s rank itself in the World for ease of doing business is an abysmal 142nd.

So, a 98-point Action Plan has been chosen to prepare a list of all the factors to know whether the policy reforms at the Centre are percolating down to the State-level. There is nothing neither subjective nor incriminating in the Survey which seriously elevates one State at the cost of another.

The survey rates States race on the implementation of reforms. And, no state has implemented 75 per cent or more. So there are no leaders, only aspiring leaders. Delhi, Haryana, Karnataka, Maharashtra, Punjab, Tamil Nadu, Telangana, Uttar Pradesh and West Bengal are the ones that need acceleration.

However, the most of states, as much as 50 per cent, are in the jump start required category. The survey is not just comprehensive, but also complements the States for the best practices which gives a good benchmarking for the benefit of all the States vying with one another for the best ranking.

So, it is a good time for the Telangana state to take the survey in its stride. The survey signals wherever progress is not happening for whatever reasons despite an inherent advantage. For instance, in respect of the Availability of Land, the survey mentions that 20 States including Telangana have comprehensive details of land banks available.

However, only Andhra Pradesh, Delhi, Gujarat, Madhya Pradesh, Odisha and Tamil Nadu score positively on both parameters. Again, both Telangana and Andhra Pradesh get the pat for formulating a single desk/single window system with clearly defined timelines for application filing, tracking and approvals, but how does AP score higher marks than Telangana for creating a Chief Minister’s dashboard for effective monitoring of the applications received?

Apart from the Single Window, the survey is to see how the two factor markets – land and labor – are dealt with by aspiring entrepreneurs, while going through the registration process under various State tax authorities. In the case of AP, while all land records are digitized, municipal records remain work-in-progress.

On the other hand, Telangana has done a commendable job in enforcing contracts by filling up more than 80 per cent vacant district court judge positions. In the case of infrastructure, only two documents are required for electricity connections and pollution control certificate is no longer a prerequisite in the State. But, the same is not appreciated by the survey.

There is an adage that what gets measured gets done. The survey is a reality check for Telangana to know how it is faring in terms of ‘ease of doing business.’ Sustained and time-bound efforts should be undertaken to make this a long-term success. There is a scope for vast improvement and a need to speed up reforms, not taking the state-of-the-art infrastructure in Hyderabad for granted.

As per the Survey, Andhra Pradesh is basking in the glory of being voted as next-best after Gujarat despite no capital city and almost non-existent infrastructure. So, let Telangana take the ranking in a positive stride, since it doesn’t help to question the credibility of World Bank.

Most of the States that surged ahead in the past rankings by KPMG have become magnets for new investments – they were not cribbers, they were doers. (The writer works as Deputy Statistical Officer, Planning Department, Telangana government)

By G Rajendera Kumar