Tamil Nadu, Karnataka slip in 'ease of doing business' ranking

About a week ago, The Department of Industrial Policy And Promotion (DIPP) released its state-wise 'ease of doing business' rankings. And while traditional performers like Gujarat and Maharashtra retained top rankings, industrial hubs like Tamil Nadu and Karnataka have dropped down the charts.

Karnataka, which is a home to India’s IT capital Bengaluru, has fallen to rank 15 from last year's 9th position, while a manufacturing hub like Tamil Nadu has dropped to 18th rank from 12 with a score of 62.8 percent.However, the ruling AIADMK in Tamil Nadu has now questioned the applicability of the DIPP’s rankings.  It says its eight MSME -friendly subsidies like the 25 percent capital subsidy on plant machinery at small enterprises or its 5 percent additional capital subsidy for MSME enterprises owned by women or physically handicapped entrepreneurs don't count for much in the Centre's 340-point business-reform action plan.

On the other hand, the DIPP's records reveal that Tamil Nadu has accounted for a mere Rs 500 crore of the Rs 19,500 crore of big investments proposed in 2015.

So, at the end of the day it boils down to priorities. While Tamil Nadu is happy promoting small-scale businesses, the numbers show that the state has lost out on big investments and implementing corporate-friendly reforms.