Rajasthan has joined Andhra Pradesh, Karnataka, Madhya Pradesh, Tamil Nadu and Telangana to complete Ease of Doing Business Reforms. Now, it is eligible to borrow additionally ₹2,731 crore.

All six States together have been permitted to borrow ₹19,459 crore.

The ease of doing business is an important indicator of the investment friendly business climate in the country. Improvements in the ease of doing business will enable faster future growth of the state economy.

In May this year, the Centre decided to link grant of additional borrowing permissions to States who undertake the reforms to facilitate ease of doing business. The reforms stipulated in this category include completion of first assessment of ‘District Level Business Reform Action Plan’, elimination of the requirements of renewal of registration certificates/approvals/licences obtained by businesses under various Acts and implementation of computerised central random inspection system under the Acts wherein allocation of inspectors is done centrally, the same inspector is not assigned to the same unit in subsequent years, prior inspection notice is provided to the business owner, and inspection report is uploaded within 48 hours of inspection.

This additional borrowing is part of enhanced borrowing by two per cent of GSDP (Gross State Domestic Products) related with each of the state. Half of this special dispensation was linked to undertaking citizen centric reforms by the States. The four citizen centric areas for reforms identified were (a) Implementation of One Nation One Ration Card System, (b) Ease of doing business reform, (c) Urban Local body/ utility reforms and (d) Power Sector reforms.

So far 10 States have implemented the One Nation One Ration Card System, 6 States have done ease of doing business reforms, and two States have done local body reforms. Total additional borrowing permission issued so far to the States who have done the reforms stands at ₹50,253 crore.

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