Cooperative Federalism : Realising the spirit

The report on India’s internal ease of doing business ranking, conducted by the Department of Industrial Policy and Promotion (DIPP) titled Business Reform Action Plan was recently released. The rankings are modelled on international ranking systems.

Key reform areas to be considered

  • Single-window system
  • Tax reforms
  • Construction permits
  • Environment and labour reforms
  • Inspection reforms
  • Commercial disputes and paper-less courts
  • One-stop system for state-level regulatory and fiscal incentives

Findings of the Report


  • The most spectacular rise is witnessed by Telangana, which went up from 13th spot in 2015 to the 1st spot in 2016 and it displaced Gujarat from the top position.
  • Uttarakhand has jumped from 23rd to 9th spot while Haryana has moved up from 14th to 6th.
  • Resource rich Chhattisgarh is ranked 4th this year.


  • Odisha slipped from 7th position in 2015 to the 11th position in 2016.
  • Jharkhand slipped from 3rd position in 2015 to 7th position in 2016.
  • Tamil Nadu slipped from 12th position in 2015 to 18th position in 2016.
  • Bihar, Uttar Pradesh and Maharashtra (most populous states) continue to remain unaspiring. For example –Bihar does not feature among the top five in any of the 10 reform areas, comprising 340 action areas, that were tracked by DIPP.

Road Ahead

The report clearly pushes the agenda of ‘competitive cooperative federalism’ pushed forward by the Prime Minister himself. Hence, it would be desirable to set up a forum where it may be possible for the laggard states to learn from the successful ones.

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