On 5th September 2020, Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman, announced the 4th edition of Business Reform Action Plan – BRAP 2019 ranking of states.
What is BRAP ?
Department for Promotion of Industry and Internal Trade (DPIIT) spearheaded a dynamic national level exercise that commenced in 2014 to rank all the States/UTs in the country on the reforms undertaken by them on designated parameters. The aim of this exercise is to create conducive business environment by streamlining regulatory structures and creating an investor-friendly business climate by cutting down red tape.
Subsequently, a report titled “Assessment of State implementation of Business Reforms” was released in September 2015 capturing the findings of reforms implemented by States/UTs.
To give this exercise momentum, 18 joint workshops were conducted in partnership with the World Bank Group to help States/UTs to better understand the essence of these reforms.
In 2016, DPIIT released a 340-point action plan which was drafted in consultation with all States/UTs. It included recommendations on 58 regulatory processes, policies and process spread across 10 reform areas spanning the lifecycle of a typical business. Such an action plan was the first of its kind in India which promoted both competitive and cooperative federalism among the States/UTs. Consequently, an online portal (www.eodb.dipp.gov.in) showcasing dynamic real time rankings was developed and launched in April 2016.
BRAP Ranking of States:
First BRAP Rankings: Ranking of States based on the implementation of Business Reform Action Plan started in the year 2015.
Second BRAP Rankings: Final ranking of States/UTs on implementation of the 340 points were released in November, 2016. The national implementation average stood at 48.93% significantly higher than 2015’s national average of 32% and 12 States achieved more than 90% implementation score.
Third BRAP Rankings: BRAP 2017-18 was updated to 372 action points with addition of new sectors such as Healthcare and Hospitality, Central Inspection system, Trade License, Registration under Legal Metrology, and Registration of Partnership Firms & Societies.
BRAP 2019 Ranking of States
The Business Reform Action Plan 2018-19 includes 180 reform points covering 12 business regulatory areas such as Access to Information, Single Window System, Labour, Environment, etc.
The larger objective of attracting investments and increasing Ease of Doing Business in each State was sought to be achieved by introducing an element of healthy competition through a system of ranking states based on their performance in the implementation of Business Reform Action Plan.
The ranking this time gives full weightage to the feedback from over thirty thousand respondents at the ground level, who gave their opinion about the effectiveness of the reforms.State rankings will help attract investments, foster healthy competition and increase Ease of Doing Business in each State.
Results: BRAP 2019 Ranking of States
The top ten states under State Reform Action Plan 2019 are:
- Andhra Pradesh
- Uttar Pradesh
- Madhya Pradesh
- Himachal Pradesh
- West Bengal
BRAP Rankings & Rajasthan
In the first BRAP States Ranking released in 2015, Rajasthan stood at 6th Position but in 2016 the state slipped two position and Rajasthan stood at 8th Position.
In BRAP 2017-18, Rajasthan again slipped one position to rank at 9th position. Now in BRAP 2019, released in September 2020 – Rajasthan has reclaimed the number 8th position again.