The number of states successfully completing the Ease of Doing Business (EoDB) reforms has increased to 15, the government said recently. Three more states—Gujarat, Uttar Pradesh and Uttarakhand—have reported completing the reforms stipulated by the department of expenditure. The EoDB is a key indicator of the investment-friendly business climate.
On receipt of recommendation from the department for promotion of industry and internal trade (DPIIT), the department of expenditure has granted permission to these three states to raise additional financial resources of Rs. 9,905 crore through open market borrowings.
Earlier, Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh, Odisha, Punjab, Rajasthan, Tamil Nadu and Telangana had completed such reforms, an official release said.
These 15 states have been granted additional borrowing permission of Rs. 38,088 crore.
Improvements in EoDB will enable faster future growth of the state economy. Therefore, the government had in May 2020 decided to link grant of additional borrowing permissions to states that undertake the reforms to facilitate ease of doing business.
Till now, 18 states have carried out at least one of the four stipulated reforms and have been granted reform linked borrowing permissions.
Out of these, 13 have implemented the ‘one nation one ration card’ system, 15 have done ease of doing business reforms, six have done local body reforms and two states have undertaken power sector reforms.
Total reform linked additional borrowing permission issued so far to the states stands at Rs. 86,417 crore.
