What is the News?
Ministry of Commerce and Industry has informed Lok Sabha about the rankings of States and Union Territories(UTs) under State Reform Action Plan (SRAP), 2019.
About State Reform Action Plan(SRAP):
- SRAP: It is an index that ranks states and Union Territories based on the implementation of the Business Reform Action Plan.
- Released by: It has been released by the Department for Promotion of Industry and Internal Trade(DPIIT) since 2015.
- Objective: To attract investments by increasing the Ease of Doing Business in each State. It introduces an element of healthy competition through a system of ranking states.
- Parameters: It includes 180 reform points covering 12 business regulatory areas such as Access to Information, Single Window System, Labour, Environment, Paying Taxes among others.
- Method of Ranking: The rankings are based on feedback obtained from users/professionals against 180 out of 187 reform points. Its method is similar to the methodology followed by the World Bank in its global Doing Business rankings.
- Ranking: The top five states under the SRAP 2019 are Andhra Pradesh, Uttar Pradesh, Telangana, Madhya Pradesh and Jharkhand.
- Department for Promotion of Industry and Internal Trade(DPIIT) has prepared a 301-point State Reforms Action Plan,2020, and shared with States/UTs.
- The Action Plan is spread across 15 reform areas. It seeks to promote a sector-specific approach to create an enabling business environment across various sectors in the country.
- The various sectors include Trade License, Healthcare, Legal Metrology, Fire License/NOC, Cinema Halls, Hospitality, Telecom, Movie Shooting and Tourism.