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Doing Business in India: Comprehensive Report

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Doing_Business_in_India

Yesterday, I wrote about a step-by-step process on how one can start a business in India. Today’s report – Doing Business in India 2009released by World Bank takes a more holistic view of it.

Today’s report is a much comprehensive look at doing business in India and talks about business regulations and their enforcement across India. It also gives an overview of how India compares to other countries in “doing business” parameters.

The report also analyzes economic outcomes and  identify what re-
forms have worked, where, and why.

Doing Business in India – 2009


  • Where is it easiest to do Business in India?

Easiest for doing business in India

Now, there is difference between “doing business” and “starting business”, where the latter is just a subset of the former. The above ranking includes all the factors from starting a company to probably closing it down.

If you see the ranking, Ludhiana takes the cake when it comes to ease of doing business, followed by Hyderabad, Bhubaneswar, Gurgaon and Ahmedabad.

One would imagine that places like Mumbai and Bangalore would rank highly here, but they are placed at lowly 10th and 13th respectively.


  • In which cities are the most reforms happening ?

Citywise Reforms in doing business

Although, India is ranked quite lowly compared to other countries, there are quite a few local level reforms happening to ensure that the process of doing business gets easier.

Incidentally, Trade  is  the  area  where  India  has reformed  the most.  India  was  the  top reformer  on  the  trading  across  borders indicator  in  World Bank report Doing  Business  2008 and continued  reforming  in  Doing  Business 2009.

Gujarat (a.k.a – Narendra Modi) has come to limelight in last few years for making the state more business friendly and the chart above is the testament to that fact.

Ahmedabad Ranked at the top with heavy reforms in all categories of starting a Business, registering a property and dealing with Construction permits. Bangalore, Bhubaneswar, Chennai & Gurgaon wrap up the top 5 spots.


  • How does India Fare when compared to Best practices followed globally?

Best practices India doing business

India is has roughly 11 procedures, with most states having 12-13 processes if you want to start a company in India. This puts India at a very poor 137 rank when compared to other countries. Some European countries have just a couple of process if they need to start a business.

The area of “starting a business”seriously needs to see some reforms , if India has to promote Entrepreneurship and Innovation in India.

Even when it comes to number of days required, India is ranked outside of top 100 countries – In India it takes more than a month if you want to start a business (that too if everything goes well, which is rarely the case).

I think the only area in which India has able to create some reforms is the amount of time it requires to deal with construction permits where it has a ranking of 19.


  • In which Indian city is it easiest and fastest to start a Business?

Indian city easiest to start a business

The Indian capital – New Delhi – ranks the top where it is easiest to start your own business, where Bangalore fares the worst among the top cities in India.

..and when it comes to fastest in starting a Business it is the Financial capital of India, Mumbai along with another Industrial hub, Noida.

Fastest city for starting business


  • Comparative chart of time & cost to start a business in Indian cities along with other select economies

Time Cost graph to start a business
(click on the graph to view)

Take that – In New Zealand it takes just a single day to start a Business and just 0.4% of per capita income compared to 30 days and whooping 70% of per capita Income !

What would you say to that – Luckily we take slightly lesser time to start a business as compared to South East region !


The Following report by World Bank talks in complete details on below given parameters of doing business in India.

  1. Starting a business
  2. Dealing with construction permits
  3. Registering property
  4. Paying taxes
  5. Trading across borders
  6. Enforcing contracts
  7. Closing a business
  8. Indian City wise Rankings

Comprehensive Report on Doing Business in India 2009

, by World Bank.

 

[Note: Please click on upper right corner to see the pdf in full screen]

  1. Navin Pathak says

    Hello Arun,
    It will be super if you update this article to include the recent changes including GST, Govt. Programs like Make in India, Start Up India, etc.
    I have included Trak.in in the ENTRY INDIA Guide that I publish and distribute in USA. Take a look on Entry India’s website http://www.entryindia.com

  2. […] are as powerful as any minister who decides on economic regulations for any business in India. Moreover this isn’t as serious as match fixing in cricket. See the irony here – the […]

  3. Gazala Khan says

    This is very informative and well researched article.

  4. Ravi Shankar says

    Yours is an excellent aritcle. I have an article which I have published in a blog site. I would request you to read that and explore how you can help or contribute to explore the opportunities in education. I can send word document for you to read if you reply to my email id. However you can use the link as below. I am looking for educationists to explore education sector in India and Indian states.

    http://opportunityineducation.blogspot.com/

    I do not have a proposal but I do have a scenario where a lot can be explored.
    Looking forward to your feedback/ comments on this scenario.

  5. Arpan Kar @ Business Fundas says

    Somehow the basis of this research is not very clear to me.. whats the methodology for such criteria & their development process?

  6. tarun says

    nice information …..i would like to know about cotton related new kind of plants information if u hav any detailes pls let u tel me ,

  7. Jerrick says

    That great to see Delhi is the easiest to do business but Mumbai like more difficult.

  8. sharada says

    very informative!!
    If I can add, Intellectual Property is one very important aspects on which any start up has to concentrate. below is a very informative article on IP for statrt ups…
    “Intellectual Property protection provides business and competitive advantage to a company. While IP is important for all companies, its value for A Start Up Company, especially, a technology or knowledge based company, is very high. In addition to providing business and competitive advantage, IP can play a very important role in enabling a Start Up company to build business relationships, raise funds, face cut throat competition and so on. In the light of the value that can be derived by a Start Up company from IP, its protection and management is very important………. To read more please visit: http://www.sinapseblog.com/2009/11/intellectual-property-ip-for-start-ups.html”

  9. Diana Mathew says

    Hi! This is such a great article and I am sure a lot of entrepreneurs and business who would like to outsource workers from India are going to benefit from this. Keep it up! I am Diana Mathew, an Australian Entrepreneur, ebook author (The Money Tree by Diana Mathew) and a Saving Money guru. If you have time, maybe you can visit me too:
    money-savings-experts(dot)com

  10. ibf says

    A very nicely written article. Well done.

  11. ajay says

    Hi Arun,

    Good researched and very well written article.Keep it up.

  12. ashok says

    nice guide, but you just said which city is easy to start business, but the cities you said are the top cities and india and there are huge competition,, so it is difficult to survive in such big cities..

  13. Rosli says

    Great infos and certainly I am looking a way to do business in India and of course looking for a good business partner from India. Will explore the options and by the way this is definitely a great blog.

  14. emanuel says

    How can I start a Garment Business in Ludhiana from scratch as I am new in this field and can you suggest some agencies or consultants who can help me in this

    Rgds
    Emanuel

  15. Syam Menon says

    Hi Arun,
    We have to put things in perspective when talking about countries like India. Everything will look different if you know the right people in the right places. I think I can beat New Zealand in some states! Ethics I tell myself, ethics!

  16. surendar says

    how to start a power plant business in india?

  17. rahul says

    came here through the twitter handle, very nice informative blog!!

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