In Boost for PM Modi, India Jumps Four Places in Ease of Business Ranking
Mangalore Today News Network
New Delhi, Oct 28, 2015: Prime Minister Narendra Modi’s aspiration to turn India into one of the world’s top investment destinations got off to a positive start as India climbed four places in the "Ease of Doing Business" rankings (2016) compiled by the World Bank. Last year, PM Modi had said that he wanted India to be among the top 50 countries on the list.
Here are 10 facts about the rankings:
1) India moved up four places, and is now ranked 130th out of 189 countries in the ease of doing business, according to the World Bank. Last year, India ranked 142 on the list, but its rank was revised upwards to 134 based on a new methodology.
2) The rankings are based on 10 indicators such as how easy it is to start a business and sometimes form the basis of foreign investments in a country. India has made rapid strides in the "days to start a business" moving from a ranking of 127 in 2014 to 29 this year, the World Bank said.
3) India improved its ranking in the area of starting a business by 9 places to 155 this year, the World Bank said. In May 2015, the government eliminated the minimum capital requirement to start a business and also ended the requirement to obtain a certificate to commence business operations, which helped rankings, the World Bank said.
4) The biggest improvement, however, was seen in the area of providing power to businesses, where India’s ranking improved from 99 in 2015 to 70 in 2016, the World Bank said. "Now companies can get connected to the grid, and get on with their business, 14 days sooner than before," the report said.
5) The World Bank noted that India recorded the biggest increase in the distance to frontier (a measure of a country’s absolute performance) score in South Asia since 2004. "More reforms are ongoing-in starting a business and other areas measured by Doing Business-though the full effects have yet to be felt," it said.
6) India is ranked 8th in terms of protecting minority investors, 42nd in getting credit, 70th in getting electricity, but scores poorly in dealing with construction permit with a rank of 183 out of 189 countries.
7) Enforcing contract (rank 178), paying taxes (rank 157), resolving insolvency (rank 136) are other areas where India ranks poorly.
8) The World Bank signaled that India’s ranking could improve further as a number of initiatives taken by the government have not been factored in the current years’ report.
"Several other initiatives to simplify the start-up process were still ongoing on June 1, 2015, the cutoff date for this year’s data collection. These include developing a single application form for new firms and introducing online registration for tax identification numbers," the report said.
9) Terming the improvement in India’s ranking a "remarkable achievement", World Bank Chief Economist Kaushik Basu said, "Going from 142 in the world to 130, as India has done, is very good sign. It gives a good signal about the way things are moving in India.
10) 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 topped by Singapore.
Courtesy: NDTV