New Delhi: Andhra Pradesh and Telangana have jointly dislodged Gujarat to emerge as the best states to do business in the country, according to a report by the World Bank and DIPP.

Chhattisgarh, Madhya Pradesh and Haryana occupied the 4th, 5th and 6th slots in the index, based on implementation of DIPP's 340-point Business Reform Action Plan.

"States are really competing with each other. Healthy competition is happening among all the states. Everybody is monitoring everybody's performance," Commerce and Industry Minister Nirmala Sitharaman said while releasing the report.

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She, however, said that more efforts are needed to encourage states like Jammu and Kashmir (at 31st) and other north-eastern regions to improve their business climate.

Nagaland, Manipur, Mizoram and Sikkim stand at 26th, 28th, 29th and 30th position.

"There is a long way to go," she said, adding that this time 15 states have implemented reforms suggested by the ministry as compared to seven last year.

Interestingly, eight out of top 10 states are ruled by BJP-led NDA. While Telangana is ruled by TRS, Uttarakhand has a Congress government.

The business reform action plan for states and UTs includes reforms on 58 regulatory processes, policies, practices, or procedures spread across 10 reform areas spanning the lifecycle of a typical business.

These are mainly single window clearance, tax reforms, labour and environment reforms, dispute resolution and construction permit.

In 2015 Index, Gujarat featured at the top, with Andhra Pradesh grabbing the second position and Telangana 13th.

As per the latest 2016 index, those in the list of top 10 states in India providing a better climate for businesses include Jharkhand (7th), Rajasthan (8th), Uttarakhand (9th) and Maharashtra (10th).

Among other major states, Odisha occupied 11th slot, followed by Punjab, Karnataka, Uttar Pradesh, West Bengal and Bihar, Himachal Pradesh, Tamil Nadu and Delhi.

These rankings were provided in the report titled 'Assessment of State Implementation of Business Reforms 2016' which was prepared by World Bank in association with the Department of Industrial Policy and Promotion (DIPP).

The exercise is aimed at promoting competition among states with a view to improve business climate to attract domestic as well as foreign investments.

In the World Bank's latest 'Doing Business' report, India's place remained unchanged from last year's original ranking of 130 among the 190 economies.

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