GUWAHATI: Meghalaya may be currently ranked at the bottom of the ease of doing business list, but “certain lacunae” affecting investor confidence may be offset by building on the strengths of the state.
The state along with Arunachal Pradesh and Lakshwadeep was ranked 34th (bottom) in the list prepared by World Bank and the Department of Industrial Policy and Promotion (DIPP), which was released on Tuesday.
Reacting on the poor current business scenario, as projected by the rankings, an expert member of the State Planning Board said, “Lack of infrastructure and comprehensive policy on investment scare genuine investors. It’s only the fly-by-night subsidy-driven investors who were active till recently. Land holding pattern is another major lacuna.”
He however said the limitations could be overcome by focusing on the strengths.
“We must build on our strength, which is tourism, agriculture, horticulture and floriculture, pisciculture, organic farming of cash crops and harnessing the vast hydro power sources including judicious use of minerals like limestone without harming the environment,” the planning board member said.
“The present government is seriously looking at formulating an action plan to facilitate ease of business while protecting our rich bio diversity,” he added.
The annual reform exercise by World Bank and DIPP under the Business Reform Action Plan is aimed at triggering competition among states to attract investments and improve business climate.
Andhra Pradesh, Telangana and Haryana were the top three respectively in the rankings. Barring Assam, the rest of the Northeastern states too fared poorly, ranked in the bottom half of the least-performing category.
Asked about his perception on how investors would be affected by such a performance, a senior businessman in Shillong, requesting anonymity, said the problem was deep-rooted as non-tribals cannot buy land in the state.
“Not everyone can come and set up a business here now compared to say several years earlier when there was a single-window clearance system in place and many traders could come and settle down,” he said.
Besides, there are technical issues such as lack of proper information technology and poor mobile network.
“We all know that information technology is system driven and hence have to be in place for ease of doing business. Unless they are not there, facilitating prompt permits and registrations for trade will be difficult. This has been reflected in the rankings and will certainly affect investor confidence, for which the Meghalaya government should take steps. It’s also about having the right attitude for ensuring a climate suitable for business and growth,” said an industrialist here.