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Doing Business in India: Getting even worse !

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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 !

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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 !

Doing-business-Sout-Asia

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

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

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

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.

Suggested Reading: Simplified step by step Process to start business in India

  1. […] over the long term offers unique advantages, which cannot be overlooked for a long period of time. Despite its share of woes, those businesses that walk in and stay enjoy healthy returns over a period of […]

  2. Rohit Charurvedi says

    Nice facts (negative) about doing business in India, but there are many positive reasons as well that are making people invest in India, start a new business in India or expand their existing businesses. I would like you to have a look at the PPT created by me itself, here it is: http://www.slideshare.net/expandinindia/top-reasons-to-expand-in-india

    1. Arun Prabhudesai says

      Thanks for your comment.

      Can you write a post for us on this… We can feature it on trak.in along with the slideshare presentation that you have pointed out..

      Thanks
      Arun

      1. Rohit Chaturvedi says

        Sure,

        I will be writing an article on this and provide you the same within few days,

        Thanks
        Rohit

  3. Yash Upadhyay says

    Nice article Arun. I stumbled upon this article and really liked it. I guess statistics would have changed by now. I would like to know that do you happen to have same statistics for different states in India?

  4. Yash Upadhyay says

    Nice article Arun. I stumbled upon this article and really liked it. I guess statistics would have changed by now. I would like to know that do you happen to have same statistics for different states in India?

  5. Rosli says

    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 :)

  6. skv says

    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…

  7. Ashley Alfred says

    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.

  8. indian says

    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…

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