India ranked 100th in ease of doing business

Nov 01, 2017, 00:26
India ranked 100th in ease of doing business

Still, even investors with a long-term perspective can only remain long on a country for so long, which is why it is encouraging that the government has started focusing on making it easier to do business in the country. These indicators are: Starting a business, Dealing with construction permits, Getting electricity, Registering property, Getting credit, Protecting minority investors, Paying taxes, Trading across borders, Enforcing contracts and Resolving insolvency.

Russian Federation has steadily risen in the overall "Doing Business" rankings over the years.

In an annual report on 190 countries' efforts to encourage investment and job creation by cutting red tape and reforming regulations, the global lender also said sub-Saharan Africa was again the region that experienced the most progress - but countries there varied widely in performance.

His remarks came after India today jumped 30 places to rank 100th in the World Banks ease of doing business ranking. The World Bank, he said, has named 10 countries where structural reforms have been taken. India, which was ranked 142nd when the Narendra Modi government took office in 2014 and 130th a year ago, is the only country to make such a significant rise. However, Brazil is the only BRICS nation below India in terms of ease of doing business. The report placed India to the 4th position in protecting the interest of minority investors.

Also, with the enactment of the new bankruptcy law, India's ranking on insolvency resolution has also improved. China, for instance, is ranked 78th and Bhutan, at 75th place, is the highest ranked economy in South Asia.

The time taken to enforce a contract is longer at 1,445 days than it was 15 years ago. Furthermore, following improvements to the online system in 2016, the time needed to complete the applications for Employee's Provident Fund Organization (EPFO) and the Employee's State Insurance Corporation (ESIC) decreased.

"The hurriedly convened press conference by the Finance Minister to seek manufactured relevance from the World Bank report was evidence of the actual distance from ground realities and suffering of people of India", Surjewala said in a statement. The surge in ranking by as much as 30 places is an outcome of key reforms including digitisation of processes, enhancing tax payment and access to credit. The ranking does not include the impact implementation of Goods and Services Tax (GST) has created as the cut off for judging the business environment was June 1. "CII is confident that on the back of GST and other reforms that are planned, India would see an equally impressive improvement next year", he said.