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Subnational India Data

For the first time, EBA conducted a subnational pilot study to assess how sensitive EBA indicators are to differences among different locations within a country. Four Indian states were selected: Bihar, Maharashtra, Odisha and Uttar Pradesh. For topics where EBA considers a case study that assumes that the company operates in the country’s largest business city, the following cities were selected on the basis of population data: Patna (Bihar), Mumbai (Maharashtra), Bhubaneswar (Odisha) and Lucknow (Uttar Pradesh). When discrepancies were found across Indian states in specific topics, Maharashtra data were considered as the proxy for India for the cross-country results presented in this EBA17 report. 

The main result of this pilot study is that while the legal and regulatory framework for agriculture and agribusiness is largely harmonized across the country, some differences emerge regarding the implementation of administrative procedures by state-level or local government agencies.

Laws governing entry and operations, quality control and trade for fertilizer, machinery, seed, transport and finance are either federal or state-level with very similar provisions across states. For example, in the finance area, the Federal Guidelines for Engaging of Business Correspondents 2010 and the Payment and Settlement Systems Act 2007 apply to all Indian states, providing global best practice for the branchless banking indicator. However, financial cooperatives are governed by state-level laws; they are similar across the four states analyzed, lacking a deposit insurance system and disclosure requirements. 

Some differences exist in the area of water and environment. Under India’s Constitution, water management is largely decentralized to the state level. Across the four states, only Odisha has established the legal foundation for a water use permit system that applies to farms that are medium-size or larger. In only two out of the four cities (Maharashtra and Odisha) does the legal framework include mandates for the establishment of basin-level institutions, and only Maharashtra and Uttar Pradesh set a legal requirement for the preparation of basin plans and the creation and maintenance of a registry of water users. Within the environment topic, plant genetic resources aspects are managed at the national level, but some differences persist in soil health management; namely, only Odisha and Maharashtra have a specific mandate for the development of land use plans. Other areas, such as producer organizations, are regulated by both central and state-level governments.

The time and costs to comply with government regulations vary across the four states in some EBA topics. For example, registering a tractor costs 500 Rupees and takes seven days in Bihar, while it costs only 200 Rupees and takes two days on average in Uttar Pradesh. Also the cost of tractor roadworthiness inspection is highest in Bihar (300 Rupees) than in the other three states (200 Rupees). The cost to obtain a truck-level state permit in Maharashtra is slightly lower (18,300 Rupees) than in Bihar, Uttar Pradesh (both at 20,000) or Odisha (23,000). While regulations related to plant protection and export documents remain national, phytosanitary certificates are issued by local government offices. There are other specific state-level licenses and permits, such as those related to domestic agricultural markets and inter-state transport.

Download data for the four Indian states