N-SIPI 2018 The NCAER Study Team August 3, 2018 1 Structure of - - PowerPoint PPT Presentation
Workshop on The NCAER 2018 State Investment Potential Index N-SIPI 2018 The NCAER Study Team August 3, 2018 1 Structure of Presentation 1. Background and scope of project 2. The six pillars of N-SIPI 3. Introduction to pillars 4. Overall
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Workshop on
The NCAER Study Team August 3, 2018
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India is the third largest market in the world
GST was introduced in April last year. The average GST revenue in 2017–18 has been impressive, at Rs. 89,885 crore
India the fastest growing economy in the world in 2018 at 7.3 percent The Global Competitiveness Index ranks India at 40th place The World Bank’s Ease of Doing Business ranks India at 100th place
Global Trends in the Economic Policy Uncertainty Index (EPU)
0.0 200.0 400.0 600.0 800.0 1000.0 1200.0
Jan'14 Jan'15 Jan'16 Jan'17 Jan'18 June'18 India EPU Global EPU China EPU
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N-SIPI focuses on the policy and structural backdrop that determines business environment in a state. Ranks states on comprehensive score based on six pillars The World Bank/DIPP Index assesses procedures to facilitate ease of doing business and transactions. Ranks states based on the progress on a 405- point action plan on business reforms N-SIPI therefore complements the work
DIPP Both induce state level competitiveness and performance
entailing healthy competition among states in all spheres of business, including in the sphere of attracting investment
make it easier to do business and attract investment
– N-SIPI 2016 : NCAER formulated and presented the first State Investment Potential Index – N-SIPI 2017 : NCAER modified and presented the second State Investment Potential Index – N-SIPI 2018 :NCAER conducted a panel survey
Reliable, Consistent and Annual “Go-to” Index for policy- makers and business
– A unique feature of N-SIPI 2018 is the inclusion of questions on GST and e-way bill in the perceptions survey to examine the impact of the new tax policy
in different sectors of the economy. – Makes survey methodology more robust.
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10 20 30 40 50 60 70 80 90 100 20 40 60 80 100 Industria ial l GS GSVA VA as s % % to
Total l GSVA VA Availability of Land for Industrial Purposes and Industrial GSVA AVAILABILITY Y OF LAND FOR OR INDUSTRIAL PU PURPOSES Ease of Land Acquisition and Stalled Industrial Projects 20 40 60 80 100 20 40 60 80 100 Nu Number of Sta tall lled proj
(hig higher valu alue impli lies less esser sta tall lled prpjects) Ease se of Lan and Acq cquis isition
Up (+1 ) Up (+1)
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20 40 60 80 100 20 40 60 80 100 Pe Per cap apita GS GSDP DP Pop Population wit ith seco condary leve evel ed educ ucation or high igher 20 40 60 80 100 0.0 20.0 40.0 60.0 80.0 100.0 Pe Perception on ea easy sy lab abour laws Nu Number of man man-days los
t due ue to
trikes s (a a high igher valu lue implie ies less sser num number of f man man-days los
ue to
trikes)
Educated Workforce and per capita GSDP
Number of Man-days Lost due to Strikes and Labour Laws
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Up (+3 ) Up (+1) Down (-2)
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20 40 60 80 100 20 40 60 80 100 Ind ndustria ial l GS GSVA as as % % of
Tota tal l GS GSVA Ro Road Den ensity 20 40 60 80 100 20 40 60 80 100 Pe Perception of f ad adequate pow
upply ly Pow Power sho hortage (hig higher valu alue impli lies less esser sho hortage) Power Shortage and Availability of Power Supply Road Density and Industrial GSVA
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Down (-1) Up (+2)
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20 40 60 80 100 0.0 20.0 40.0 60.0 80.0 100.0 Pe Perception on the he econ economic ic clim limate Ind ndustria ial l GS GSVA
Ind Industrial GSVA an and d per perception of
eco economic clim limate
10 20 30 40 50 60 70 80 90 100 20 40 60 80 100 Perc rception on tax x poli
transitio ion to
GST T GS GST T as as a a perce centage of f non non-agric icultre GS GSVA GST and Perception on Ease of Transition to GST
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10 20 30 40 50 60 70 80 90 100 20 40 60 80 100 Pe Per cap apita GS GSDP DP Gov Governance ce index 20 40 60 80 100 20 40 60 80 100 Perc rception on Acq cquirin ing g ap approvals ls Environment t rela elated sta talle lled proj
(Hig igher valu alue impli lies less sser sta tall lled proj
cts) Stalled Projects and Perceptions on Acquiring Approvals for Business Governance and per capita GSDP
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Unique component of N-SIPI
Constructed using extensive and scientifically based industry surveys across 21 states The Perceptions Pillar forms the sixth pillar of N-SIPI
54% 32% 14%
No Problem Moderate Severe
Percent respondents finding getting approvals for land a problem
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21.2 28.3 28.7 28.8 29.1 30.1 30.9 31.3 34.4 34.6 35.9 37.4 43.6 44.4 44.5 45.7 45.9 55.0 0.0 20.0 40.0 60.0 Availability of power Availability of raw material Road / Rail quality/ connectivity Availability of unskilled labour Industry related policies Availability of water Availability of skilled labour Availability of net connectivity Labour relations Access to finance Sewage facility Labour laws Getting all approvals before starting business Quality of skilled labour Tax policy transition to GST Difficulty in getting approvals for land Corruption in the state Law and order situation in the state
Constraints Faced by Business (% Respondents)
56.4 29.0 14.5 No problem Moderate Severe 39.6 42.6 17.3 Better Same Worse Respondents Perceiving the Impact of GST on Their Businesses (%) Respondents Reporting Problems Related to Tax Policy Transition to GST (%)
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experience and involvement on the various aspects of reforms as captured through specific indicators at the firm level through the responses to the structured questionnaire both from the manufacturing and services sector units
Land
Availability Procedural constraints
Labour
Skilled Quality Unskilled Relation Laws
Infrastructure
Power Water Net Connectivity Sewage Road/Rail connectivity
Economy & Governance
Industry policy Finance accessibility Raw materials Clearance Corruption Law & Order Tax policy transition
Business Environment
Prospective business condition Own financial position Present investment climate GST Current level of
the real-time data from the responding units
2017
major states
perceptions through weighted responses
Ownership type
Industry sector
53% 39% 7% 1% Private Limited Public Limited Partnershi p/Individu al Ownership MNC 19% 21% 18% 8% 30% 4% Consumer Durable Consumer Non_Dura ble Intermedi ate Capital
Manufacturing firms Service firms
54% 35% 11% 10 to 100 crore 100 to 500 crore 500 crore and above
33% 36% 31% 5 to 10 crore 10 to 50 crore 50 crore and above
Problem acquiring land Difficulties in getting approval
14% 86% Yes No 54% 32% 14% No Problem Moderate Severe
Overall Problem in acquiring land Problem in getting permissions/ approval Least Problem Andhra Pradesh Andhra Pradesh Himachal Pradesh Biggest Problem Uttarakhand Jharkhand Karnataka
2 4 6 8 10 12 14 16
10-100 100-500 Over 500 Acquiring land High to severe difficulty in getting approval
Business environment Firms’ financial position 59% 36% 5% Better Same Worse 58% 37% 5% Better Same Worse
Overall ll Business conditions Fi Financial al pos position Leas Least Problem Telangana Telangana Karnataka Biggest Problem Bihar Maharashtra Punjab
25.4 35.4 45.7 30.0 43.5 32.9 23.9 49.0 50.4 34.7 42.7 30.1 24.7 48.7 40.3 32.9 47.4 20.8
0.0 10.0 20.0 30.0 40.0 50.0 60.0
Corruption as a potential problem Acute transitional problem to GST Problem in getting approvals for starting business Difficulty in labour relations Law and order as a problem Difficulty in connectivity of surface transport
10 -100 100 -500 Over 500
the sub-pillar has been quantified
totalled for each of the pillar and compared with the responses received from each of the states
comparing the weighted average response of all the pillars across states
Achievers Front runners Potential to improve Gujarat Rajasthan Andhra Pradesh Haryana Madhya Pradesh Bihar West Bengal Uttar Pradesh Karnataka Kerala Chhattisgarh Telangana Delhi Jharkhand Maharashtra Uttarakhand Assam Punjab Odisha Himachal Pradesh Tamil Nadu
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