Taking a major step towards achieving its aim of improving country's ranking on World Bank index and business sentiment, the Government is planning to give ratings to States on the basis of ease of doing business and also come out with 10 parameters in which States will be rated.
"The Government would release ratings in July and it will be based on 10 parameters," sources close to the development told The Pioneer, adding that " we have also decided this in Make in India workshop, where Chief secretaries of States and Indian Industry held consultation with Prime Minister Narendra Modi and formulated short term (1year) and medium term (3 years) action plan."
Recently Cabinet Secretary Ajit Kumar Seth ,who was named the nodal officer to monitor the performance of the States met senior officials of different departments including commerce, DIPP and finance to take a stock of the performance till now.
"The 10 parameters include: starting a business (including getting power and water connections), environment clearances, land and building clearances and permits, labour laws and clearances, inspection of the businesses, exit mechanism and resolving insolvency, credit and financing facilities," sources said.
"States will submit a detailed report by May and we will announce the ratings by July," sources added.
The department of industrial policy and promotion (DIPP) has circulated 98 action points to state governments on "creating an enabling framework for simulating investments in manufacturing" with specific timelines for each action.
According to report 'Ease of Doing Business' by World Bank, India has slipped further at 142 among 189 countries as on June 1 from 134 last year.
Ranking in other eight categories are: Starting a business (158th), Getting electricity (137), Registering property (121), Getting credit (36th - down from 30th place), Paying taxes (156), Trading across borders (126), and Resolving insolvency (137).
Getting construction permits in India involved an average of 25 procedures that took 186 days, and cost 28 per cent of the warehouse value. Enforcing contracts took 46 procedures and 1420 days - nearly four years. Getting electricity took 106 days and registering a property took 47 days.
The Government has set an ambitious goal of bringing India into the top 50 on the World Bank Ease of Doing Business index, from its current rank of 142 on a list of 189 countries, within two years.