Doing Business in India: Getting even worse !

I have been following the World bank reports for last 4 years and have featured it earlier on this blog as well. India is actually getting worse every year !

Infact, even in comparison to 8 South Asian Countries, India comes 2nd last just above Afghanistan. It is easier to do business in Bhutan, Nepal and Bangladesh as compared to India. Pakistan, is the easiest country to do business among all South Asian Countries !

And where does India stand Globally?

India ranks 133rd of total 183 countries when it comes to ease of doing Business. It is a shame that over years, instead of getting better, India is becoming worse !

Out of total 183 countries, India was Ranked 120 in 2007, 122 in 2008 and 133 in 2009.

Doing Business in India Global rank

Here are some of the highlights of various areas of doing business as compared to other countries.

Cost & Time taken to start a business in India

Days taken to start a Business

India performs worst here – it takes more cost & money to start a business in India that most of the countries worldwide. India was placed 166th last year, and this year they have fallen further to 169 !

Dealing with Construction Permits

Dealing with Construction permits

Here we have China in toe with us – The emerging superpowers of world are ranked to lowest, India at 175 and China at 180

Employing Workers in Business

Emplying workers

Here we do well (yeah relatively), as we have other BRIC nations faring even worse.

Getting Credit to start a Business

Getting Credit

This is where India ranks the best. At 30th position, it is easier in India to get credit than most other countries in the world. Its easiest to get credit in Malaysia ! I think I should move there :)

Protecting investors of the Business

Protecting Investors

India actually does well in protecting its investors, which I think is a really good – China on the other hand is ranked lowly 93rd (I dont know why do I keep comparing India & China all the time :))

Paying Taxes

Everyone knows it is extremely difficult to pay taxes in India and the 169th rank is justified. The good news is that, our Finance Minister has launched the Direct Tax Code bill that will make a huge difference when the ranking comes out next. This is one area, I am quite confident, that India will improve in coming years.

Trading across Borders

Trading Across borders

Its difficult to trade across borders compared to half of 183 countries surveyed. Its much easier to do it in China – and why not, China’s economy is heavily dependent on trading across borders !

Enforcing Contracts

I dont have to say anything here – India ranked at 182 when it comes to enforcing contracts – It just does not happen in India ! Conversely, it happens very well in China.

Closing a Business

You cannot close your business easily in India – ranked 138th – Think about the difficulties involved in closing the business first, even before you start your business.

You can find full reports released by World bank here.

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Author: Arun Prabhudesai

Arun Prabhudesai is founder / chief editor at trak.in. He jumped the Entrepreneurship bandwagon in early 2008 after a long 13 year stint in I.T Industry. You can follow him on twitter @trakin or get in touch with him at admin-at-trak-dot-in or 91.9822575676.

Doing Business in India: Getting even worse !

Tagged as: business-india, closing a business, Cost & Time taken to start a business in India, countries in the world, Dealing with construction permits, Doing business, Doing-business-in-india, Employing Workers in Business, finance-minister, Getting Credit to start a Business, india india, india pakistan, India-Business, money to start a business, paying taxes, Protecting investors of the Business, south asian countries, Starting-a-business, superpowers

{ 4 comments… read them below or add one }

1 indian September 10, 2009 at 3:56 pm: Dear Brother,
We No Need to worry, many people are doing paper and numbers business, to get the Foreign Investors to there countries, we only do the ethical business, and true business, thats why if you compare in paper and , if you see reality it is different in India. No need to worry we only do the truly business, TRUE will won oneday. For the business Profit is important, it does not matter which way you get the profilt. But there any some Business are there since CENTURIES which is having TRUE values , still those business are sustaining, because they do ethical and true business. similarly we no need to show in the papers what we don’t have,we pass our feature generations with ethics and true for log losting powers in features, one day people will identify, we have many what they don’t have.
We no need to competitive with other countries, if we have self sustainability power ourself and to protect from other countries who want to face ur from social,economical,army, that is enough for us, IF YOUR TRUE YOUR SELF , GOD GIVE THE POWER AUTOMATICALLY.
That is what ,how i believe.
Thanks…
2 Ashley Alfred September 11, 2009 at 2:04 pm: Some of the main problems to start business in India are lack of professionalism and lack of organization also. Corruption is a big problem here. You shouldn’t have to bribe to get everyday things done. If all these can be eliminated, India would be doing so well. I have clients who want to come here but are afraid to come. I personally can bring in a lot of people. India grows so much food but a lot of it is wasted as there is no proper storing mechanism.
3 skv September 24, 2009 at 2:14 am: Doing Business WITH India is much easier than doing business in India, as the outsourcing of services to India has shown. Indians speak your language, Indians are flexible, Indians are hard working, Indians are smart, Indians think logically and Indians cost very little! But, dont go there yourself, let the Indians manage India for you…
4 Rosli January 6, 2010 at 7:16 am: To me doing business in any countries you need to find a local partners who know the country inside out. That will help you in the long run. Same with you, if you wanna do a business in Malaysia just look for me :)

Doing Business in India: Getting even worse !