The Planning Commission will assess and evaluate states on ease of doing business in a bid to help improve overall business regulatory environment by plugging loopholes. The evaluation process, to be done by consultancy firm Deloitte, will also make it easier for foreign investors to zero down on the most business-friendly states expand their business.
"We will assess states on parameters like ease of registration of business, safety of buildings, management of labour and the number of documents required in different states for initiating a business activity," a senior official in the Planning Commission told ET.
The plan panel has also roped in the Department of Industrial Policy and Promotion and industry chambers such as the Confederation of Indian Industry and the Federation of Indian Chamber of Commerce and Industry for the study that seeks to enable states compete with each other to improve their business environments and suggest ways to overcome the problems being faced by states.
While Deloitte will do a broad comprehensive evaluation, DIPP, CII and Ficci will undertake detailed evaluation in at least half-a-dozen states each and identify important industry sectors that have been facing maximum hurdles.
"Once the evaluation is complete, the Planning Commission will come up with a consistent policy framework to enhance the business regulatory environment in each state," the plan panel official said.
India is considered a poor destinations to do business, being ranked 132 among 185 countries in overall ease of doing business in the latest World Bank report.
To improve the country's image among investors, the government had fasttracked approvals for a number of big-ticket infrastructure projects late last month.
The plan panel official said it will host the first meeting of all stakeholders this week wherein it will be ascertained if poor business regulatory environment in states is due to the existing laws or poor administration of the law. The first report is expected by this year end.
Chetan Bijesure, director at Ficci, said the chamber has already identified labour and land issues as key areas that require streamlining in Rajasthan.
