The Department of Industrial Policy Promotion along with the World Bank Group evaluated 32 states and Union Territories of India, based on the implementation of 340 reforms parameters. DIPP’s 340-point Business Reform Action Plan (BRAP) for 2015-16 listed Rajasthan as one of India’s Leader state for implementing over 90% of business reforms.
Even though the gap between the top ranked state and Rajasthan is only about 2.35%, Rajasthan is ranked 8th by implementing 96.43% of the BRAP while the top position was shared by Andhra Pradesh and Telangana which implemented 98.78% reforms. Last year’s top ranking state Gujarat dropped to third spot with a score of 98.21%.
With this, Rajasthan has been moved to the ‘Leader’ category from the ‘Aspiring Leader’ category, where it was in last year’s rankings. Currently Karnataka, Uttar Pradesh, West Bengal and Bihar are classified as “aspiring leaders’ with scores of 70-90%.
Due to the quick implementation process under CM Vasundhara Raje’s government, four of Rajasthan’s reform activities have been named national best practices. These are-
- Development of legally-valid master plans/zonal plans/land use plans for all urban areas
- Making the master plans/zonal plans/land use plans conveniently and easily available online
- Allowing building plan approval certificates to be downloaded via an online portal
- Enabling industries to submit an application, make a payment, and track and monitor requests for a water connection
Out of the centre’s 10 core reform areas, Rajasthan is amongst the top five states that has enabled 9 of the areas-
- Construction permits
- Environmental registrations
- Labour regulation
- Obtaining electricity connection
- Online filing of tax returns
- Access to information and transparency
- Single window clearance
- Commercial dispute resolution
Chief Minister Vasundhara Raje is making sure to uplift Rajasthan in every aspect possible. Her recent reforms addresses areas like labour laws, education, power distribution companies, public healthcare, and public distribution systems among others.
Infact, in her second term, the state’s performance on business reforms has shot up much faster as compared to the other states throughout India. According to state industries minister Gajendra Singh Khimsar, the implementation score has increased by over 30% compared to last year. Complimenting the achievements due to the effectiveness of Rajasthan’s model of development, he further praises the state government for their commitment towards growing and strengthening its ease of doing business environment.
Even though the state is a leader in most of the reforms, there are still a few areas where it needs more simplification. The environment clearances and approvals is still an issue in the state. One of the major problems industry faces in the country is getting environment clearances. Similarly, the state also need proper reforms over availability of land.
Implementation is the key to provide the investors ease of doing business on the ground. With the booming tourism and foreign trade sectors, the future of Rajasthan looks brighter than before.