Update on India’s States: November 2, 2016

Andhra Pradesh and Telangana top new state ease of doing business report, while Maharashtra tops farmer-friendliness rankings; Haryana will give raises in line with the 7th Pay Commission; Foxconn backs away from major Maharashtra investment; Tamil Nadu finally signs on to the National Food Security Act; and more.

Center–State Relations

The Department of Industrial Policy & Promotion (DIPP) released the final results of its second annual ranking of the Ease of Doing Business in India’s states. States were ranked according to their implementation of a 340-point business reform action plan between July 1, 2015 and June 30, 2016. Andhra Pradesh and Telangana tied for the top ranking, closely followed by Gujarat. Chhattisgarh, Madhya Pradesh, Haryana, Jharkhand, Rajasthan, Uttarakhand, and Maharashtra completed the top 10. Source: The Hindu

Maharashtra topped a new NITI Aayog ranking of states according to the number of farmer-friendly reforms they’ve enacted. The ranking assessed states on their reforms in the areas of agricultural markets, land leasing, and forestry on private land. Gujarat and Rajasthan rounded out the top three. States with no Agricultural Produce Marketing Act were excluded. Source: PIB

The Andhra Pradesh State Investment Promotion Board (SIPB) approved two major industrial projects: a solar panel manufacturing factory in Chittoor district from the Essel-GCL consortium and a shipbuilding unit in Visakhapatnam to be built by Reliance Defense. Source: Business Standard

Nothing critical to report this week.

Nothing critical to report this week.

Inox Wind said that it has won a repeat order from ReNew Power Ventures for a 50 megawatt (MW) wind power project in Gujarat. Source: Business Standard

Haryana has ‘in principle’ decided to award its employees pay and benefit raises in line with the recommendations of the 7th Central Pay Commission (CPC). The 7th CPC recommended a wage and benefit hike of nearly 24 percent. Source: Indian Express

Karnataka will replicate Delhi’s model of building a neighborhood-based network of extended health centers, known as mohalla clinics, in densely-populated areas. The clinics will offer a wider range of services than do existing primary health centers and will be equipped to carry out dozens of diagnostic tests. Source: Times of India

India’s top manganese ore producer MOIL Limited signed an agreement with the Madhya Pradesh government to conduct mineral exploration in the state. MOIL will work with the Madhya Pradesh State Mining Corporation Ltd. Source: Money Control

A state government official admitted that Taiwanese electronics giant Foxconn is unlikely to follow up on last year’s plans to build a huge new plant in the Mumbai area. More than a year after Foxconn and Maharashtra signed a memorandum of understanding (MoU), Foxconn has apparently failed to secure sufficient new orders to justify the investment. Source: Economic Times

Cairn India plans to invest $80 million during the current financial year to further develop its gas fields in Rajasthan. Eight out of the 15 wells have been brought online, with the rest to go into production by December. Source: Business Standard

Tamil Nadu finally agreed to implement the National Food Security Act, but will also “retain and continue” its existing Universal Public Distribution System. The decision came after the center threatened to nearly triple the price the state would have to pay for rice to be distributed to above poverty line consumers. Source: Daily News & Analysis

A two-day start-up conference jointly hosted by The Indus Entrepreneurs and the Indian School of Business led to investment pledges worth $50 million by angel and venture capital investment firms. Reportedly 35 of the 120 start-ups that pitched their ideas to investors generated tangible interest. Source: Hindu Business Line

The Suzlon group announced that it has entered into a joint venture with Ostro Energy for development and construction of a 50 MW solar project in Telangana. Source: Economic Times

Nothing critical to report this week.

Trinamool Congress leader Derek O’Brien met with members of the US-India Business Council (USIBC) in New York, with state finance minister Amit Mitra joining via video conference. O’Brien pitched business leaders on the state’s fast growth and improved economic climate. Source: Economic Times



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