India jumps to 77th rank in World Bank’s ease of doing business

Source: The Hitavada      Date: 01 Nov 2018 08:50:50


 

By Lalit K Jha,

WASHINGTON/NEW DELHI,


India was ranked 100th in the World Bank’s Doing Business report last year

INDIA improved its ranking on the World Bank’s ‘ease of doing business’ report for the second straight year, jumping 23 places to the 77th position on the back of reforms related to insolvency, taxation and other areas. India was ranked 100th in the World Bank’s Doing Business report last year.


The ranking comes as a shot in the arm for the Narendra Modi Government which faces strong dissenting voices from Opposition parties ahead of the general elections next year. In its annual ‘Doing Business’ 2019 report, World Bank said India improved its rank on six out of the 10 parameters relating to starting and doing business in a country. These parameters include ease of starting a business, construction permits, getting electricity, getting credit, paying taxes, trade across borders, enforcing contracts and resolving insolvency.


India was ranked at the 142nd position among 190 nations when the Modi Government came to power in 2014. It rose to the 100th spot in the last ranking from 131st rank in the previous year.


New Zealand tops the list of 190 countries in ease of doing business, followed by Singapore, Denmark, and Hong Kong.
The United States is placed eight and China has been ranked 46th. Neighbouring Pakistan is placed at 136. World Bank put India among the top 10 economies to make the most improvements.


Observing 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, it said, made starting a business easier by integrating multiple application forms into a general incorporation form. “India also replaced the value-added tax with the GST for which the registration process is faster,” it said.


Also, “India made paying taxes easier by replacing many indirect taxes with a single indirect tax, the GST, for the entire country. India also made paying taxes less costly by reducing the corporate income tax rate and the employees’ provident funds scheme rate paid by the employer,” the World Bank said.


World Bank said India has further streamlined the process of obtaining a building permit and made it faster and less expensive to obtain a construction permit. It also improved building quality control by introducing decennial liability and insurance.

India can improve further, says Arun Jaitley

 

NEW DELHI,

BUOYED by a 23-place jump on World Bank’s ease of doing business ranking, Finance Minister Arun Jaitley on Wednesday said India can crack into top 50 if it improves on time taken for registering real estate, starting business and enforcement of contracts.


Addressing a news conference soon after the World Bank released its 2019 ranking, Jaitley said areas that require improvement include time taken for registering property, starting business, insolvency and taxation, and enforcement of contract areas. The BJP-led Government, since coming to the power, has reduced red-tape and corruption, and its reforms have ensured India jumps ranks from 142 to 77, he said.


Improvements have already done on enforcement of contracts, taxation and insolvency laws and would be reflected in future rankings, he said. Jaitley said Prime Minister Narendra Modi had soon after coming to power in 2014 set a target of breaking into top 50 and it seems probable if improvements are done on time taken to start business, registering property, enforcement of contracts, paying taxes and insolvency laws.