Andhra Pradesh and Telangana have completed the easy classification of business, while Gujarat has slipped to third position in the list prepared by the World Bank and the Department of Industrial Policy and Promotion (DIPP).
Chhattisgarh, Madhya Pradesh and Haryana respectively occupied the fourth, fifth and sixth places in the index based on the degree of implementation of the Action Plan of trade reform 340 points MIPD.
The action plan includes reforms of 58 processes, political, regulatory practices or procedures in 10 areas of reform covering the life cycle of a typical company.
This is primarily the duty of the PSCs, tax reforms, labor reforms and the environment, dispute settlement and the building permit.
In 2015, Gujarat figured at the top, Andhra Pradesh taking second position and Telangana 13th.
According to the latest Index 2016, those included in the list of top 10 Indian states with better climate for businesses include Jharkhand (7th), Rajasthan (8th), Uttarakhand (9th) and Maharashtra (10th).
Other major states, Odisha occupied the 11th place, followed by Punjab, Karnataka, Uttar Pradesh, West Bengal and Bihar, Himachal Pradesh, Tamil Nadu and Delhi.
These rankings were provided in the report entitled "Implementation of Assessment of State reform in 2016" prepared by the World Bank in association with the MIPD.
The exercise aims to promote competition among States to improve the business climate to attract domestic and foreign investment.
In the latest report of the World Bank's "Doing Business", instead of India remained unchanged from the initial ranking 130 of 190 economies evaluated on various parameters. But the ranking of last year was revised to 131, from which the country has improved its position by a place.