Gujarat toppled down five spots to rank No 10 in the Ease of Doing Business Index ranking 2019 released by the Centre on Saturday.
Gujarat which was ranked 5th in the 2018 edition finished 10th this time.
The state, however, continues to be in the top 10 list of states with ease of doing business since 2015. Gujarat was the highest-ranked state in the inaugural 2015 BRAP but has since then seen its rankings have taken a dip. It was ranked 3rd in the 2016 edition and 5th in the 2017 and 2018 edition.
Union Finance Minister Nirmala Sitharaman released the 2019 rankings and said it makes states and UTs a better place to do business.
Other states ranking
Andhra Pradesh topped the list followed by Uttar Pradesh and Telangana. The rankings were based on the fourth edition of the Business Reforms Action Plan (BRAP) released by the Department for Promotion of Industry and Internal Trade of the commerce ministry.
The other states in the top 10 ranks were Madhya Pradesh (4th), Jharkhand (5th), Chhattisgarh (6th), Himachal Pradesh (7th), Rajasthan (8th) and West Bengal (9th).
Andhra Pradesh has retained the top spot for the third consecutive year. Uttar Pradesh came second jumping from the 12th position in 2018.
Delhi was at the 12th position on the ranking list. The national capital jumped 11 places from 2018 ranking of 23rd position.
Why performance of some states plummeted
Several states saw their rankings plummet as a result of the new methodology that also relied on user feedback systems. This means the feedback did not match the tall claims made by the respective state governments.
Some of the state’s that saw their rankings plummet from the 2018 ranking include Haryana (16th from 3rd), Karnataka (17th from 8th) and Odisha (29th from 24th).
The ranking measures the ease of doing business on 285 factors when it was introduced in 2015 but now covers 372 points spread across 12 areas. Some of the factors that are considered include ease of registering property, paying taxes and labour regulation laws.
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