BJP-ruled Gujarat is the best place in the country to do business, says the World Bank's ranking on ease of doing business in states, a list that has the party-ruled states occupying four of the top five slots.
Andhra Pradesh, ruled by BJP-ally TDP, is the second best state, followed by Jharkhand, Chhattisgarh, Madhya Pradesh and Rajasthan - all having BJP governments.
These rankings were provided in the report titled 'Assessment of State Implementation of Business Reforms' which was prepared by World Bank in association with the Department of Industrial Policy and Promotion (DIPP), KPMG, CII and Ficci.
The exercise is aimed at promoting competition among states with a view to improve business climate to attract domestic as well as foreign investments.
The move would also help in improving India's overall ranking in the global Doing Business Study. India has been placed at 142nd position among 182 nations. Overall, World Bank said India is a difficult place to do business and concerted action and reforms are needed on several fronts to improve its ranking in the global 'Doing Business Index'.
"The assessment recognises the fact that most states have already embarked on ambitious reform programmes or expanded their ongoing reform efforts," Additional Secretary in DIPP, Shatrughna Singh said.
The ranking of 32 states and union territories was based on eight specified parameters which include setting up of business, allotment of land, labour reforms and procedure for environmental clearance.
The parameters also include infrastructure, procedure for registration for tax purposes and inspections for compliance of various norms.
At the bottom of the ladder in the index were Mizoram, Jammu and Kashmir, Meghalaya, Nagaland and Arunachal Pradesh.
"What this report does very well is to provide a roadmap for states serious about improving their business environment and creating jobs," World Bank country director Onno Ruhl said.