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.
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
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
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
Here we do well (yeah relatively), as we have other BRIC nations faring even worse.
Getting Credit to start a Business
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
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 :))
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
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 !
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.
Suggested Reading: Simplified step by step Process to start business in India