Kerala ranks below Lakshadweep at No 28 in 'Ease of doing business' index


Anish Jacob

Photo: P.P Ratheesh Mathrubhumi archives

Thiruvananthapuram: In a major blow to the government’s effort in making Kerala an industrial friendly state, the 'Ease of doing business index' released for the year ranks Kerala at 28 among the states and union territories of India. Even Lakshadweep, which has no significant industries, is ahead of Kerala in the report.

Meanwhile, the state government has written to the central government seeking a revision in norms for measuring the Ease of doing business index. The state has argued that the unscientific moves in measuring the concerned data has resulted in the state being ranked poorly.

The state has implemented all the proposals put forward by the Central Government for the Ease of Doing Business. So the expectation was to come out on top in rankings. However, the criteria also point out that a survey should be conducted by speaking directly to entrepreneurs in the concerned state.

Central representatives contact some of the local businessmen by phone. However, if they fail to respond to the call twice, it will result in zero marks. It was revealed that businessmen from Kerala failed to attend the call due to some personal reasons and this brought Kerala’s rank further down the list.

Similarly, the state had passed a law allowing industries with an investment of over Rs 50 crore to be licensed within seven days and industries below that to operate without a license for up to three years.

Earlier, Industries Minister P Rajeeve met Union Commerce Minister Piyush Goyal to discuss these unscientific standards. The Center is also considering revising the norms.

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