India notches up in Ease of Doing Business ranking worldwide
New Delhi : India improved its ranking in the category of ‘Starting a business’ and ‘Ease of doing business.’ It jumped upwards 12 places, reaching to the 130th position this year on the ease of doing business ranking. Out of 189 countries featuring in the list of ‘ease of doing business’, according to the World Bank data release, India has made a significant progress trotting above 12 places and vacating its previous position of 142 with ease and confidence.
This comes in as a major boost to the aspirational vision of Modi-led NDA government as Prime Minister always laid emphasis on ‘Ease of doing business’ and extended facilities to several countries by opening a direct facility window from the PMO itself to a few, and delivering on the promise. India has often been considered as a place of paper trail and complex business mechanisms in the past, and has many times lost to other countries, many an investment opportunities due to non-friendly ease of business practices. This complicated system has found some relief after the present NDA government took oath and occupied Central government Union cabinet.
The notch up in ranking justifies the intent of present government and would be seen as a major investment opportunity for worldwide business platforms. countries which have been waiting in the sidelines and contemplating on whether or not, to put their investments in the complex Indian system of business practices. This rank upwards would certainly facilitate such investment plans to take a step forward and venture into the country.
Prime Minister Narendra Modi’s aspiration to turn India into one of the world’s top investment destinations has gained a positive momentum as India climbed four places in the ‘Ease of Doing Business’ rankings (2016) compiled by the World Bank. World Bank’s Chief Economist and Senior Vice President Kaushik Basu remarked on this move-up saying, ‘A forward movement of 12 spots in the ease of doing business by an economy of the size of India is a remarkable achievement.’
India improved its ranking in the area of ‘starting a business’ too by moving up by 9 places to 155 this year, the World Bank said. Steps taken by the government in areas such as elimination of minimum capital requirement to start a business, and doing away with requirement to obtain a certificate to commence business operations, helped rankings, as indicated by World Bank.
In the category of ‘providing power to businesses’, improvement has been tremendous where India’s ranking improved from 99 in 2015 to 70 in 2016. World Bank interpreted it saying, ‘Now companies can get connected to the grid, and get on with their business, 14 days sooner than before.’
India is ranked 8th in terms of protecting minority investors, 42nd in getting credit, 70th in getting electricity. Ranks in which India still fares badly and needs to catch up big time are – dealing with construction permit(183rd rank), enforcing contract (178th rank), paying taxes 157th rank), resolving insolvency 136th rank). World Bank clarified that India’s ranking could improve further as a number of initiatives taken by the government have not been factored in, yet, into the current year report.
China – the world’s second biggest economy – moved up six places to 84th rank, while Pakistan slipped 10 spots to 138th place in the ease of business rankings, the list topped by Singapore.