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India’s success story in ‘Ease of Doing Business’ continues

Akshay Narang by Akshay Narang
1 November 2018
in Economy
ease of doing business, India

PC: The Indian Express

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In a development that comes as a commendable achievement for the incumbent government, India has registered a massive improvement in the World Bank’s ‘ease of doing business’ rankings. This is the second straight year in which the nation has shown improvement. India has leapfrogged 23 places to 77th rank in the World Bank’s global ‘Ease of Doing Business’ rankings. India was ranked 100th in the World Bank’s ‘Doing Business’ report last year. This major feat comes as a corroboration of the government’s reform credentials, making the country an attractive destination for investors. This year, New Zealand topped the list of 190 countries in ease of doing business, followed by Singapore, Denmark, and Hong Kong. The most phenomenal improvement has been with regard to ‘construction permits’ with a whopping 129 notches, 66 points in ‘trading across borders’, 19 in ‘starting a business’, and 7 points in ‘getting credit’.

PM Modi tweeted that he was delighted at this achievement of the nation. He also stated, “We are unwavering in our commitment towards economic reforms, which will ensure an environment that fosters industry, investment and opportunities.” BJP president Amit Shah, mentioned in his tweet that the government has simplified processes, quickened clearances and decision making, and has came down heavily on corruption and middlemen.

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In its annual ‘Doing Business’ 2019 report, World Bank said about India that it has improved its rank on six out of the 10 parameters related 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 has been put among the top 10 economies to have made the most improvements by the World Bank. The World Bank also observed that the two economies with largest populations, China and India, showed impressive reforms. It also highlighted the Indian effort of streamlining its business processes.

The World Bank has given positive reviews in two such areas on which the critics of BJP and PM Modi have been trying to corner the Modi government- implementation of GST and debt recovery. It said that India has made the process of starting a business easier by integrating multiple application forms into a general incorporation form. The World Bank added, “India also replaced the value-added tax with the GST (Goods and Services Tax) for which the registration process is faster.” It also emphasised that under the new system (GST), payment of taxes has become easier. About the debt recovery issue, the World Bank said that the establishment of debt recovery tribunals in India has reduced the non-performing loans by 28 per cent and lowered interest rates on larger loans, suggesting that faster processing of debt recovery cases cut the cost of credit.

India was ranked at the 142nd position among 190 countries when Modi government came at the helm of affairs in 2014. The nation has, therefore, registered a massive jump of 65 ranks throughout the tenure of the incumbent government. The rise has been tremendous and unbelievable, particularly, over the last two years. India rose to the 100th rank last year from the 130th rank in 2016. Therefore, the jump on the part of India is massive and exemplary in the ‘Ease of doing Business rankings’ and this establishes the reforms agenda pursued by Modi government to be strong and effective.

This, indeed, is a welcome development and on the political front it corroborates the dedication, commitment and efficiency of the Modi government in making India a favoured destination for investments. Its landmark reforms along and their smooth implementation is on the verge to make India a power to reckon with.

Tags: Ease of Doing Business.Indian EconomyPM ModiWorld Bank
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