Two days after Haryana slid to 16th spot in the Ease Of Doing Business rankings of states and UTs, state’s Deputy CM Dushyant Chautala, who is also the Industries minister, said that the ranking was impacted by “new standards” being introduced in the survey. Haryana was ranked third in the previous edition of ranking by the Department for Promotion of Industry and Internal Trade.
In a statement, Dushyant said: “The 2018-19 ranking of Ease of Doing Business has lowered the rankings of not only Haryana but several other states as well. The rankings of some geographically small states and Union Territories have increased but the rankings of most states, acknowledged for their industrial growth, has declined. A survey has been conducted on the basis of new standards in 2019 to prepare the ranking of states under Ease of Doing Business. More than 25 new standards were added to this survey, while a few standards being implemented earlier were removed. These significant changes have affected the rankings prominently.”
He said that the Haryana government is implementing new Enterprises and Employment Promotion Policy in the state from October 1, which will cover all the key aspects and help improve the rankings once again.
Explaining the slide in rank, Dushyant added: “The latest rankings are not about the last financial year. But it is for the year 2018-19 and a survey was conducted in this regard for June 2019 while evidence and explanations related to it were collected by August 2019. This implies that the rankings of investors during last few months of 2018 and early months of 2019 have been included. The basis of the ranking of Ease of Doing Business has been the advisory document announced by the Department of Promotion of Industry and Internal Trade (DIPP) for the states in 2019, which was named the Business Reforms Action Plan 2019. In this survey based on the new standards, there has been an unprecedented rise in the rankings of some states, like Uttar Pradesh, whose ranking scaled up from 12 to two. Delhi has also stepped up from 23rd rank to 12th rank, meanwhile Lakshadweep has gone up from 34th rank to 15th rank and Andaman and Nicobar has gone up from 31st rank to 22nd rank. On the basis of the new standards, Orissa has moved down from 14th to 29th position, while Haryana has also slipped from 3rd to 16th position in the rankings. The state of Bihar was ranked 18th, but as per the new survey rankings it has now dropped down to 26th position. Kerala was earlier ranked 21st, which has now slipped to 28th, while Karnataka has also fallen from 8th to 17th position, while the state of Gujarat from has slipped from 5th to 10th position.”
He pointed out: “Barring Uttar Pradesh, the rankings have not been favourable for any large and industrially developed state, while industrialized states like Karnataka, Gujarat, Haryana, Orissa, Bihar and Kerala are victims of the new survey. However, the rankings of smaller states and union territories like Daman Diu, Andaman and Nicobar, Mizoram, Arunachal Pradesh, Delhi, Himachal Pradesh, Sikkim, Meghalaya and Lakshadweep have shown considerable improvement.”
Dushyant said that the government was studying the changed standards adopted for the survey. He stressed that state government remained committed to providing all facilities to the industrialists.
The Deputy CM said, “Due to its proximity to the national capital Delhi, the vacant lands on both sides of the KMP has a lot of potential for a new industry to be built. Besides this, the state government is preparing a proposal to lease Panchayati vacant lands for setting up new industries. In addition, clusters of small industries have been prepared at various places in the state. More than 60 companies set up in China have expressed willingness to invest in Haryana. In such a situation, there is bound to be improvement in Haryana’s ranking in the current financial year and in future. Haryana was ranked 14th in the rankings announced during the last year of the last term of Congress in the state. Thereafter it was ranked sixth after the Congress tenure and then it inched up to third rank. Except for one year, the ranking of industrial scenario in Haryana has steadily improved in the last six years.”
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