Economic Environment Index- Measuring the enabling environment for households and firms at district level

Economic Environment Index- Measuring the enabling environment for households and firms at district level
July 2009-Santosh Singh, Somasundaram L, Chinmaya Kumar
Lead Center : Centre for Development Finance
Focus Area :Infrastructure & Governance

The Economic Environment Index (EEI) study in the state of Tamil Nadu, India comes in the wake of the recognition to foster inclusive growth through a decentralised planning process. Such recognition inherently implies the existence of regional diversity that may not be visible in state level analyses. Often, we find that in districts and small towns beyond the metros, ability of firms and households to maximise their economic benefits is constrained by local factors that constitute the economic environment. Therefore, improving the economic environment available at the regional level for firms and households – the ultimate economic constituents to whom governmental schemes are targeted – can help them leverage their existing resources and benefit from the government programmes for their economic growth


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The Economic Environment Index (EEI) study in the state of Tamil Nadu, India comes in the wake of the recognition to foster inclusive growth through a decentralised planning process. Such recognition inherently implies the existence of regional diversity that may not be visible in state level analyses. Often, we find that in districts and small towns beyond the metros, ability of firms and households to maximise their economic benefits is constrained by local factors that constitute the economic environment. Therefore, improving the economic environment available at the regional level for firms and households – the ultimate economic constituents to whom governmental schemes are targeted – can help them leverage their existing resources and benefit from the government programmes for their economic growth