Reform linked borrowing permissions are facilitating Ease of Doing Business reforms. Five states have so far completed the stipulated reforms in the Ease of Doing Business. Andhra Pradesh, Karnataka, Madhya Pradesh, Tamil Nadu and Telangana have been granted permission to mobilize additional financial resources to the tune of 16,728 crore rupees through open market borrowings. 

The Ease of Doing Business is an important indicator of the investment friendly business climate in the country. Improvement in the ease of doing business will enable faster future growth of the state economy. Therefore, the government had in May this year decided to link grant of additional borrowing permissions to states which undertake reforms to facilitate ease of doing business.