Gujarat Leads the NCAER List of 21 States with Most Investment Potential


BENGALURU: Gujarat has topped the list of 21 states drawn by the economic think-tank NCAER and has come ascend as the state with most investment potential. It is followed by Delhi, Tamil Nadu, Andhra Pradesh and Maharashtra. Five major pillars, labor, infrastructure, economic climate, governance and political stability, and perceptions with 51 sub-indicators were considered while developing the list, reports Economics Times.

Other than Gujarat that topped in governance and political stability, and perceptions, it was Delhi that transcended in infrastructure and economic climate followed by Kerala that leads in handling labor issues. The report also pointed out that Bihar, Uttar Pradesh and Jharkhand need a significant amount of catching up. Assam was the only one among the seven north-eastern states considered for the survey while Goa, Jammu & Kashmir and Sikkim were not considered.

According to NCAER's Senior Fellow Indira Iyer, the report is in contrast with World Bank's report released last year. Although it complements the rankings of the World Bank’s report. The reason lies in the fact that NCAER report is focused on policy and structural backdrop and determines the business environment in a state, while the World Bank-DIPP report was more inclined to the procedures and transactions. Iyer added that states need to focus on e-governance, ease of doing business and improving skilled manpower to attract investors.

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