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REALITY CHECK

The worst places to do business in India

By Itika Sharma Punit

Prime minister Narendra Modi wants the world to “make in India,” but several regions in the country are far from being business-friendly.

Between July 2015 and June 2016, the average implementation of business reforms across the country was 48.9%, according to data released by the government on Oct. 31.

The scoring is based on ”the extent to which states have implemented Department Of Industrial Policy and Promotion’s 340-point business reform action plan (BRAP) for states and union territories,” a government release said.

“The BRAP includes recommendations for reforms on 58 regulatory processes, policies, practices or procedures spread across 10 reform areas spanning the life cycle of a typical business,” it added. The report was done in partnership with the World Bank.

Five of the “seven sister” states in India’s northeast are among the country’s 10 worst regions to start and run a business:

RankRegionScore
25Dadra & Nagar Haveli1.79%
26Puducherry1.49%
27Nagaland1.49%
28Manipur1.19%
29Mizoram0.89%
30Sikkim0.60%
31Arunachal Pradesh0.30%
32Jammu & Kashmir0.30%
33Chandigarh0.30%
34Meghalaya0.30%
35Andaman & Nicobar Islands0.30%
36Lakshadweep0.30%

The national capital New Delhi stood 19th on the ranking, scoring below 50%.

Andhra Pradesh and Telangana jointly topped the ranking, followed by Modi’s Bharatiya Janata Party-run Gujarat, Chhattisgarh, and Madhya Pradesh.

In the World Bank’s global ease of doing business ranking—which considers only Mumbai and Delhi—India stands at a lowly 130 out of 190 nations, behind countries such as Iran, Uganda, Sri Lanka, Ghana, Nepal, and Saudi Arabia. The Modi government has set an ambitious target of climbing into the top 50 of the ranking.