Gujarat No 1 in ease of doing business? Thank 'environmental compliance'

By Rajiv Shah
A Government of India report, supported by World Bank, consultants KPMG, and two top industry bodies, Confederation of Indian Industries (CII) and Federation of Indian Chamber of Commerce and Industry (FICCI), has placed Gujarat No 1 for “ease of doing business”, but point out, this has been possible because of cent per cent compliance to environmental laws, an area in which it is most suspected by environmentalists.
The report’s revelation comes amidst sharp criticism by top environmental experts of the Gujarat government’s “complete failure” to ensure that industries comply with environmental norms. Only two years ago, the Central Pollution Control Board had found two of the industrial centres in Gujarat, Vapi and Ankaleshwar, as topping the list of most polluting clusters.
Setting aside these concerns, the report, interestingly, is more points to how quickly environment procedures are followed in Gujarat. It says Gujarat is the only state which has implemented the online “consent management system”, achieving 100 per cent score on this score. The compliance in Gujarat, it adds, is very high for handling air, water and hazardous waste pollution.
The report, in fact, praises the Gujarat Pollution Control Board for adopting “a web based application called eXtended Green Node (XGN) to provide an IT solution for effective implementation of various pollution control board clearances/procedures”.
It says, “XGN provides hassle free, 24 X 7 anywhere e-access to businesses to apply online, track application approvals, file returns and statements and getting online permissions under various Acts and rules. obtain the online permissions from GPCB.”
The other two parameters for which Gujarat has been found to be particularly doing well are land allocation and implementation of labour laws. Titled “Assessment of State Implementation of Business Reforms”, the report is the outcome of Prime Minister Narendra Modi asking the World Bank Group to “support” India’s efforts to enhance India’s competitiveness and increase manufactured exports.

A World Bank source says, the report “captures the findings of an assessment of reform implementation by states led by the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India”.
It comes close on the heels of World Bank ranking Gujarat 142 among 189 countries in its assessment of ease of doing business. The ranking has gone down by two in a year; it was 140 in 2014. Onno Ruhl, World Bank country director, who released the report, says, “The stark reality is that India remains a difficult place to do business. A disproportionately high regulatory burden is borne by businesses in India today.”
Despite ranking No 1, the report does not believe that Gujarat is a leader. It says, “States with an overall implementation status of 75 per cent and above” would be leaders, but at 71.14 per cent Gujarat is still a little away.

Gujarat is still an “aspiring leader”, the report states, pointing out that it in the company of six other states – Andhra Pradesh, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha and Rajasthan.
Notwithstanding Gujarat being No 1 in ease of doing business, as for “setting up business”, the report finds several states topping the list, but not Gujarat. Setting up business criteria include establishing an effective single window system, availability of information on regulatory compliance requirements, and similar such procedures.
The report comments, “Remarkably, Punjab is the only state in which the single window system allows application for all of the licenses studied in this assessment, although some others come very close. The box below examines how Punjab has achieved this.”
Other states which have “converted” their single window system into truly effective online portals” are Andhra Pradesh, Madhya Pradesh, Maharashtra, Telangana and Uttar Pradesh, the report points out.

Comments

Grueling summer ahead: Cuttack’s alarming health trends and what they mean for Odisha

By Sudhansu R Das The preparation to face the summer should begin early in Odisha. People in the state endure long, grueling summer months starting from mid-February and extending until the end of October. This prolonged heat adversely affects productivity, causes deaths and diseases, and impacts agriculture, tourism and the unorganized sector. The social, economic and cultural life of the state remains severely disrupted during the peak heat months.

Stronger India–Russia partnership highlights a missed energy breakthrough

By N.S. Venkataraman* The recent visit of Russian President Vladimir Putin to India was widely publicized across several countries and has attracted significant global attention. The warmth with which Mr. Putin was received by Prime Minister Narendra Modi was particularly noted, prompting policy planners worldwide to examine the implications of this cordial relationship for the global economy and political climate. India–Russia relations have stood on a strong foundation for decades and have consistently withstood geopolitical shifts. This is in marked contrast to India’s ties with the United States, which have experienced fluctuations under different U.S. administrations.

Concerns raised over move to rename MGNREGA, critics call it politically motivated

By A Representative Concerns have been raised over the Union government’s reported move to rename the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), with critics describing it as a politically motivated step rather than an administrative reform. They argue that the proposed change undermines the legacy of Mahatma Gandhi and seeks to appropriate credit for a programme whose relevance has been repeatedly demonstrated, particularly during times of crisis.

From natural farming to fair prices: Young entrepreneurs show a new path

By Bharat Dogra There have been frequent debates on agro-business companies not showing adequate concern for the livelihoods of small farmers. Farmers’ unions have often protested—generally with good reason—that while they do not receive fair returns despite high risks and hard work, corporate interests that merely process the crops produced by farmers earn disproportionately high profits. Hence, there is a growing demand for alternative models of agro-business development that demonstrate genuine commitment to protecting farmer livelihoods.

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor* This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

Why India must urgently strengthen its policies for an ageing population

By Bharat Dogra A quiet but far-reaching demographic transformation is reshaping much of the world. As life expectancy rises and birth rates fall, societies are witnessing a rapid increase in the proportion of older people. This shift has profound implications for public policy, and the need to strengthen frameworks for healthy and secure ageing has never been more urgent. India is among the countries where these pressures will intensify most sharply in the coming decades.

Thota Sitaramaiah: An internal pillar of an underground organisation

By Harsh Thakor* Thota Sitaramaiah was regarded within his circles as an example of the many individuals whose work in various underground movements remained largely unknown to the wider public. While some leaders become visible through organisational roles or media attention, many others contribute quietly, without public recognition. Sitaramaiah was considered one such figure. He passed away on December 8, 2025, at the age of 65.

School job scam and the future of university degree holders in West Bengal

By Harasankar Adhikari The school recruitment controversy in West Bengal has emerged as one of the most serious governance challenges in recent years, raising concerns about transparency, institutional accountability, and the broader impact on society. Allegations that school jobs were obtained through irregular means have led to prolonged legal scrutiny, involving both the Calcutta High Court and the Supreme Court of India. In one instance, a panel for high school teacher recruitment was ultimately cancelled after several years of service, following extended judicial proceedings and debate.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Search This Blog