Wednesday, September 23, 2009

Doing business in Punjab

Came across a story titled Punjab plans to revitalise biz, investment spirit
It talks about various things the state government and others are doing to promote the entrepreneurial spirit and create an ecosystem favorable to business and investment. I really hope that happens, though I am a bit skeptical of the government's capacity to deliver.

Anyway, what I want to focus on is the World Bank's ranking of Indian cities, mentioned in the article. According to that ranking, Ludhiana is the best of 17 Indian cities for ease of doing business.

Here is the ranking:
Ludhiana 1
Hyderabad 2
Bhubaneshwar 3
Gurgaon 4
Ahmedabad 5
New Delhi 6
Jaipur 7
Guwahati 8
Ranchi 9
Mumbai 10
Indore 11
Noida 12
Bengaluru 13
Patna 14
Chennai 15
Kochi 16
Kolkata 17

Some of the positions are plausible, others less so. Without going into the ranking methodology too much, I checked where Ludhiana stands on various subcategories:
Ease of starting a business 7
Ease of dealing with construction permits 7
Ease of registering property 11
Ease of paying taxes 1
Ease of trading across borders 12
Ease of enforcing contracts 4
Ease of closing a business 2

Looking at these ranks, I am not sure that Ludhiana necessarily deserves to be ranked 1st (which means that the overall index has some problems).

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