Gujarat maintains top position as state with most investment potential
ECONOMY & POLICY

Gujarat maintains top position as state with most investment potential

According to the State Investment Potential Index (N-SIPI 2017) released by the National Council of Applied Economic Research (NCAER), Gujarat has maintained its top position in the list of states with the most investment potential. The report ranks states based on the investment climate and their competitiveness in business. Gujarat is followed by Delhi, Andhra Pradesh, Haryana, Telangana, Tamil Nadu, Kerala, Maharashtra, Karnataka and Madhya Pradesh in the released list.

The assessment and subsequent ranking of the top 20 states and one Union Territory was on the basis of six pillars and 51 sub-indicators. The six pillars include labour, infrastructure, economic climate, governance and political stability, perceptions and land.

In terms of individual pillars, Delhi ranked first for infrastructure, Tamil Nadu for labour issues, and Madhya Pradesh topped the list for the pillar of land. Haryana and Telangana have also rapidly progressed through the charts and established themselves in the top five rankings. Bihar, Uttar Pradesh and West Bengal are ranked among some of the least favourable states for investment, but they rank higher under other individual pillars.

All sectors have observed an expansion in terms of investment opportunities. Furthermore, with the introduction of GST, the economies of all the states can be weaved together in ways that were not feasible before.

Corruption remains the biggest obstacle faced by businesses in the country. Getting necessary approvals for starting a business continues to be the second biggest obstacle faced by businesses in 2017.

According to the State Investment Potential Index (N-SIPI 2017) released by the National Council of Applied Economic Research (NCAER), Gujarat has maintained its top position in the list of states with the most investment potential. The report ranks states based on the investment climate and their competitiveness in business. Gujarat is followed by Delhi, Andhra Pradesh, Haryana, Telangana, Tamil Nadu, Kerala, Maharashtra, Karnataka and Madhya Pradesh in the released list. The assessment and subsequent ranking of the top 20 states and one Union Territory was on the basis of six pillars and 51 sub-indicators. The six pillars include labour, infrastructure, economic climate, governance and political stability, perceptions and land. In terms of individual pillars, Delhi ranked first for infrastructure, Tamil Nadu for labour issues, and Madhya Pradesh topped the list for the pillar of land. Haryana and Telangana have also rapidly progressed through the charts and established themselves in the top five rankings. Bihar, Uttar Pradesh and West Bengal are ranked among some of the least favourable states for investment, but they rank higher under other individual pillars. All sectors have observed an expansion in terms of investment opportunities. Furthermore, with the introduction of GST, the economies of all the states can be weaved together in ways that were not feasible before. Corruption remains the biggest obstacle faced by businesses in the country. Getting necessary approvals for starting a business continues to be the second biggest obstacle faced by businesses in 2017.

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