Business Reforms Action Plan (BRAP), 2020

July 2, 2022

On June 30, 2022, Union finance minister Nirmala Sitharaman released the ‘Business Reforms Action Plan (BRAP), 2020’, and presented assessment report of states and union territories.

Key Points

In the Business Reforms Action Plan (BRAP) 2020, states have been categorized into four categories, namely

Top achievers,
Achievers
Aspires, and
Emerging business ecosystems.

In this report, states have been categorized, as opposed to earlier practice of announcing ranks.
The BRAP report comprises of 301 reform points, covering 15 business regulatory areas like access to Information, labour, single window system, sectoral reforms, environment, and other reforms related to lifecycle of a typical business.
In it, sectoral reforms have been introduced for the first time. In it, 72 reforms were identified across 9 sectors viz., healthcare, trade licence, cinema halls, legal metrology, fire NOC, hospitality, movie shooting, telecom, and tourism.

Categorization of States

States like Gujarat, Andhra Pradesh, Haryana, Telangana, Pubjab, Karnataka, and Tamil Nadu have been categorised as ‘top achievers’ in the rankings, according to the plan.
Himachal Pradesh, Maharashtra, Madhya Pradesh, Uttarakhand, Odisha, and Uttar Pradesh have been categorised as ‘achievers’.
Assam, Goa, Kerala, Jharkhand, Chhattisgarh, West Bengal and Rajasthan were categorized into ‘aspires category’.
In ‘emerging business ecosystems’ category, 11 states and UTs including Puducherry, Delhi and Tripura have been listed. Others include- Andaman & Nicobar, Chandigarh, Bihar, Daman & Diu, Jammu & Kashmir, Dadra & Nagar Haveli, Meghalaya, Manipur, Tripura and Nagaland.

Significance of the new method

As per secretary of Department for Promotion of Industry and Internal Trade (DPIIT), under new categorisation method, difference between various states and UTs was so little that, it will not make sense to rank them.

Background

‘Business Reforms Action Plan report is being released by DPIIT, since 2014 for steering business reforms, in order to create investor-friendly ecosystem across India.

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