According to the second edition of National Council of Applied Economic Research (NCAER) State Investment Potential Index (N-SIPI 2017) report, Gujarat has retained the top position in the list of 21 states and UTs with most investment potential.
Highlights of N-SIPI 2017:
Gujarat is followed by Delhi, Andhra Pradesh, Haryana, Telangana, Tamil Nadu, Kerala, Maharashtra, Karnataka and Madhya Pradesh.
- Haryana and Telangana have moved rapidly up the ranks to finish among the top five.
- While Gujarat topped on the indicator of economic climate and perceptions, Delhi ranked first in infrastructure.
- Tamil Nadu topped the chart in labour indicator and Madhya Pradesh ranked one in land
- The report has highlighted that although Bihar, Uttar Pradesh and West Bengal are ranked among the least favourable states for investment, they rank higher under individual pillars.
- 2017 N-SIPI team leader Indira Iyer stated that as per the report, “corruption” continues to be the number one constraint faced by businesses. However, there has been a decline in the percentage of respondents citing corruption as a constraint to conducting business from 79% in 2016 to 57% in 2017.
- Getting approvals for starting a business is still the second-most pressing constraint faced by businesses in 2017 as was the case in 2016.
About National Council of Applied Economic Research (NCAER) State Investment Potential Index:
NCAER-State Investment Potential Index or N-SIPI is an evidence-based index that combines published secondary data on key relevant parameters with an extensive industry survey conducted by NCAER across twenty states and the Union Territory of Delhi.
- N-SIPI has been built on five key indicators and comprises 51 sub-indicators. The five key indicators are economic climate and perceptions, infrastructure, land labour and governance & political stability.
- The index is a combination of perception based index (constructed using surveys) and fundamentals driving investment decisions to capture state level differences.
- Policy makers of State Governments utilise the findings of this report in improving the business climate and attracting investors.
- The report also serves as a reference document for existing businesses and potential domestic and overseas investors.