The Lee Kuan Yew School of Public Policy of Singapore declared Maharashtra as ranked highest according to a broad measure of Ease of Doing Business (EDB) in Indian states. It is noted that the new index has given 21 major states entirely different ranks when compared with the World Bank’s Ease of Doing Business Index.
Top 5 states :
|Top 5||State||World Bank rank|
About EDB :
It is computed by aggregating the distance to frontier scores of different economies. The distance to frontier score uses the ‘regulatory best practices’ for doing business as the parameter and benchmark economies according to that parameter.
- For each of the indicators that form a part of the statistic ‘Ease of doing business,’ a distance to frontier score is computed and all the scores are aggregated. The aggregated score becomes the Ease of doing business index.
- Indicators for which distance to frontier is computed include construction permits, registration, getting credit, tax payment mechanism etc. Countries are ranked as per the index.
- Normally, Ease of doing business is an index published by the World Bank. It is an aggregate figure that includes different parameters which define the ease of doing business in a country.
- Empirical research is needed to establish the optimal level of business regulation—for example, what the duration of court procedures should be and what the optimal degree of social protection is. The indicators compiled in the Doing Business project allow such research to take place. Since the start of the project in November 2001, more than 800 academic papers have used one or more indicators constructed in Doing Business and the related background papers by its authors.
About Maharashtra :
Maharashtra is a state in the western region of India and is India’s third-largest state by area and is also the world’s second-most populous sub-national entity.
- It has over 120 million inhabitants and its capital,Mumbai, has a population of approximately 18 million. Nagpur is Maharashtra’s second capital as well as winter capital. Maharashtra’s business opportunities along with its potential to offer a higher standard of living attract migrants from all over India.
- Ancient and medieval Maharashtra included the empires of the Satavahana dynasty, Rashtrakuta dynasty, Western Chalukyas,Mughals and Marathas. Spread over 118,809 sq mi. it is bordered by the Arabian Sea to the west and the Indian states of Karnataka, Telangana, Goa, Gujarat, Chhattisgarh, Madhya Pradesh and the Union territory of Dadra and Nagar Haveli.
- Maharashtra is one of the wealthiest and the most developed states in India, contributing 25% of the country’s industrial output and 23.2% of its GDP (2010–11).
- As of 2011, the state had aper capita income of Rs.1.0035 lakh, more than the national average of Rs.0.73 lakh (US$1,100). Its GDP per capita crossed the Rs.1.20 lakh threshold for the first time in 2013, making it one of the richest states in India.
- However, as of 2014, the GDP per capita reduced to Rs.1.03 lakh Agriculture and industries are the largest parts of the state’s economy. Major industries include chemical products, electrical and non-electrical machinery, textiles, petroleum and allied products.