Ease of Doing Business: India takes a big leap

Oscar Cross
November 1, 2017

Commenting on the India's unprecedented performance in ease of doing business, Prime Minister Narendra Modi stated, "The Government has undertaken an extensive exercise of stakeholder consultations, identification of user needs, government process re-engineering to match government rules and procedures with user expectations and streamline them to create a more conducive business environment. India is moving ahead in absolute ranking as well", Annette Dixon, Vice President, South Asia region, told reporters earlier in the day. But it ranked among the worst in dealing with construction permits, resolving insolvency, registering property, trading across borders, paying taxes and enforcing contracts.

The report pointed out that GST hadn't shown its full impact which will be visible in the next 2-3 years.

India has been ranked 100th among 190 countries and territories in the report released by the World Bank on Tuesday.

According to the World Bank, India's rank on "ease of doing business" scale has risen from 130th to 100th this year, helped by a slew of reforms in taxation, licensing, investor protection and bankruptcy resolution. Moreover, World Bank listed names of 10 countries which have taken structural reforms, and India is the only major economy to feature in this list.

He said the government lives in "a make believe cuckoo world" as it is blinded by the blinkers of "Achhe Din" and was unable to "see, feel, judge or address India's pain".

"Crores of job losses in the informal sector have resulted in a "cease of doing small businesses". He expected India will soon reach the 50 position. This year we have moved up 53 places to 119.

"India performs well in the areas of protecting minority investors, getting credit and getting electricity".

"The country's corporate law and securities regulations have been recognised as highly advanced, placing India in fourth place in the global ranking on protecting minority investors", the World Bank said.

India's state governments should work on reducing burden on courts, engineer land reforms, boost electricity, get construction permits quickly, the report said. We are reinforcing our economic turnaround by a vigorous and active implementation of the Economic Recovery and Growth Plan (ERGP) so businesses operating in Nigeria can thrive and be competitive globally. The time to enforce a contract takes 1,445 days compared with 1,420 days 15 years ago and while starting a business takes 30 days compared with 127 days 15 years ago, local entrepreneurs still need to go through 12 procedures to start a business in Mumbai, much more than in OECD countries. "In fact, India is well on its way to emerge as a global leader in protecting minority interests and is now ranked 4th in the world".

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