`Competitive federalism'

“Competitive federalism“ is driving states to rush in with reforms that have made it easier for businessmen to electronically register and pay taxes, obtain electricity connections more easily and have a simpler regime for inspections by labour and pollution inspectors.
The first-of-its-kind ranking of states on ease of doing business -to be released by the World Bank over the next few days -has thrown up some positive trends from across the country with the more business-friendly ones using it as an opportunity to streamline processes in a bid to attract investment. There are several states where processes related to construction permits and property registration have been simplified.
Although the exercise covers several areas, there are at least 10 segments where states such as Maharashtra, Tamil Nadu, Andhra Pradesh and Jharkhand have shown good progress. Sources said that there are segments where progress has been more. For instance, they pointed out that several states are now insisting on random inspection, besides uploading of reports within 72 hours, a move which is expected to reduce harassment.Andhra Pradesh has put in place a single-window mechanism that offers all clearances to set up an industry within 21 working days.
Although several states are claiming that single-window clearance mechanisms are in place, the sources said, the process needs to stabilise and more measures are required.

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