BREAKING NEWS

AP is top state in Ease of Doing Business: ACI

Asia Competitiveness Institute (ACI) has ranked Andhra Pradesh as the top state in India for Ease of Doing Business (EoDB) on the Index attractiveness to investors and Business Friendliness and Competitive Policies (EDB Index ABC). According to Tan Khee Giap, co-director of ACI at Lee Kuan Yew School of Public Policy (Singapore), Andhra Pradesh stood first followed by Maharasthra and Delhi. 
 
From 6th position last year, Andhra Pradesh has scaled to the top position in ACI rankings. The EDB Index ABC follows a bottom-up approach which takes into account business perspectives at a micro level through its intense survey data and combines it with publicly available data. The index took into account 72 hard and soft key performance indicators (KPIs) before announcing the results. 
 
According to Andhra Pradesh Chief Minister N. Chandrababu Naidu, this is a huge achievement for the state despite the constant challenges it is faced with. “We have initiated a slew of reforms and this ranking is in fact a testimony to our progress,” he said, at a public meeting. 
 
While the World Bank’s Department of Industrial Police and Promotion rankings takes a different approach, the EDB Index ABC has considered both de facto and de jure factors to measure the Ease of Doing Business in 21 sub-national economies of India. The tailored report by ACI reports the strengths and weakness of the business environment in the state and makes certain recommendations on how the state can make the most of its strong points. 
 
According to ACI, it has suggested that numerous institutional and infrastructure gaps should be filled to sustain Andhra Pradesh’s ranking. Foreign direct investment per capital, workers density, labour productivity, illiteracy rate were identified as weakest indicators for the state. However, it also added that there is sufficient room for improvement for the state in facilitating business operations, increasing market potential and infrastructure resilience.
 
“An analysis at the indicator level will help identify specific areas of improvement and will play a crucial role in realising the Chief Minister’s vision of making AP the best investment destination in the work by 2050,” concluded the ACI report. 

 

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