States' ease of doing business: DIPP to send clarification on methodology of ranking to Gujarat

New Delhi: The Department of Industrial Policy and Promotion (DIPP) will send a detailed clarification to the Gujarat government on questions raised by it over ease of doing business rankings which assigned the state fifth position. Gujarat slipped two positions to rank fifth in the ease of doing business ranking among all the states and Union Territories. It was prepared by the World Bank and the DIPP. The state topped the chart in 2015. Questioning the methodology of DIPP-World Bank ranking, the state has sought clarification. “We are giving them a detailed reply with annexure to Gujarat,” DIPP Secretary Ramesh Abhishek told reporters here. A Gujarat government official had pointed out that despite having a higher feedback score of 83.64 percent as compared to Haryana (82.9 percent) and same reform evidence score (99.73 percent), Gujarat was placed two notches lower. [caption id=“attachment_3013354” align=“alignleft” width=“380”]  Representational image. Reuters[/caption] Further, when asked about the lower rank of Delhi in the latest 2017 report, the secretary said that parameters are different here when compared to the rankings being prepared by the World Bank globally. Delhi’s rank slipped to 23rd this time from 19th in 2016 and 15th in 2015. He said that parameters considered for the states’ ranking and World Bank’s ranking are different. World Bank considers reforms in Delhi and Mumbai while preparing the global rankings of 190 nations. Commenting on states which are ranked quite lower such as Meghalaya and Arunachal Pradesh, Abhishek said that states that are performing well are partnering with these states to share best practices. “Number of states that are doing well are increasing and efforts are being done to help all the states,” he added.