India Improves 12 Spots In World Bank’s Ease of Doing Business List; Govt’s Business Reforms Really Working?
World Bank has released their updated global ranking of “Ease of Doing Business”, and there is some massive improvement in India’s position. Compared to last year, we have jumped 12 spots to be ranked at 130 out of 189 countries. Last year, we were ranked 142 in this same list, as we had actually slipped two positions.
On one hand it yet again proves that India’s economic standing and worth is undergoing a tremendous change; on the other hand, it’s evidence that PM Modi’s major business reforms introduced within the last one and half years are actually working.
While releasing this list, World Bank’s Chief Economist and Senior Vice President Kaushik Basu said, “A forward movement of 12 spots in the ease of doing business by an economy of the size of India is a ‘remarkable achievement,”
This list has been yet again topped by Singapore, which was ranked #1 last year as well.
The top 7 countries in the world, where it’s easiest to start a new business are:
- New Zealand
- South Korea
- Hong Kong
Pakistan has been ranked 138th (slipped 10 spots) while China is ranked 84th (improved 6 spots) in this list.
What Is Changing in India?
The report specifically mentions two major business reforms, which has helped India to beat all expectations and climb the ranking:
a) Now, there is no requirement for a minimum paid up capital to start a business in India; and there is no need to obtain a ‘certificate’ to become an entrepreneur. These were considered as major hindrances in launching a new business
b) Both Delhi and Mumbai removed the mandatory ‘Internal Wiring Inspection’ done by Electrical Inspectorate. This has made the process of procuring a new electricity connection relatively easy, and without much paperwork.
India has improved in various niches such:
- India jumped 9 ranks under “Starting a Business” category; it was earlier ranked #164, which has now improved to 155
- We improved one position under “Dealing with construction permits”, as India is now ranked #183
- Under “Getting Electricity” category, we have jumped massive 29 spots to be ranked at #70
However, for “Getting Credit” category, we have slipped 6 ranks at #42; under “Paying Taxes”, we have slipped one position to be ranked at #157.
For other categories such as “Registering Property”; “Protecting Minority Investors”; “Trading Across Borders”; “Enforcing Contracts”; “Resolving Insolvency”, there has been no change.
Although many changes and reforms are still needed, we are atleast going on the right path.
The 13th edition of World Bank’s “Doing Business 2016 – Measuring Regulatory Quality and Efficiency” can be downloaded here.