Tuesday, 20 November, 2018

India Jumps 23 Places on World Bank’s ‘Ease of Doing Business’ Rankings

India jumps 23 places to take 77th rank in World Bank's 'Ease of Doing Business' index New Zealand is best place to do business but UK slips to ninth – report
Nellie Chapman | 01 November, 2018, 04:28

At that time, the country was battling perceptions of excess red-tape and policy paralysis.

India was ranked 100th in the World Bank's Doing Business report past year.

It was 130th in 2017 when it was ranked lower than Iran and Uganda.

Also attributed to the improvement is the ease in accessing credit a section that advanced to a global rank of eight from 29 previous year.

Commenting on government's new initiative of monitoring Ease of Doing Business in the district level, he said this step will further enable India to improve in micro-levels thereby affecting the macro picture. Pakistan is ranked 136 in the index that surveys 190 countries.

In New Delhi, Jaitley said a focussed approach would ensure getting within "the 50th rank target is not out of reach".

The World bank ranks 190 countries based on 10 parameters, including starting a business, construction permits, getting electricity, getting credit, paying taxes, trade across borders, enforcing contracts, and resolving insolvency.

"Legislation is already in place with regard to enforcement of contract, taxation, and insolvency".

He said, it is all because of teamwork of Central government, State governments and Local government. Jaitley also said the impact of GST has not been entirely accounted for in the ranking due to an early cut off date.

Commerce and Industry minister, Suresh Prabhu said, today's ranking is an indication of collective work between various ministries. "I believe it is entirely possible for the country to transform the regulatory environment and create a more competitive business environment, however, this improvement needs to be sustained and accelerated".

Noting that the two economies with the largest populations - China and India - demonstrated "impressive reform agendas", the World Bank said India also focused on streamlining business processes. "India, with six reforms, is among the top-ten improvers for the second consecutive year", the report said.

During the past year, starting a business was made easier by enhancing the online one-stop registration system, replacing several forms for incorporation with a single application, and establishing information exchange between the registry and the tax authority. India's performance on the World Bank's assessment is a positive sign for foreign investors and is likely to reap benefits in the coming days, said Arun Kumar, Chairman and CEO, KPMG.

The government also introduced the reorganisation procedure and improved the continuation of the debtors' business during insolvency (bankruptcy) proceedings for Karachi and Lahore. The WB data showed that various measures undertaken by the Narendra Modi-led NDA government - the Goods and Services Tax (GST) in July, relaxed construction permit, ease in starting a business and trading across borders - helped India jump 23 places from its rank of 100 in 2017.

China and India - two economies with the largest populations - are among top 10 improvers this year.