India’s Ease Of Doing Business Ranking Jumps 30 Places To #100 In A Year!
This is a big leap forward for India and its economy!
Some analysts are terming it sheer magic, while some are explaining it as a miracle. India has jumped 30 places in a year, in the coveted, and much anticipated Ease of Doing Business Ranking by World Bank.
Thus, after this massive improvement, we are now ranked #100 out of 190 economies. Last year, we had ranked a lowly #130.
However, despite such incredible improvement, we are still lagging behind countries like China, Thailand and Bhutan, which have shown even greater improvements.
New Zealand has beaten Singapore this year to become the World’s #1 country for Ease of Doing Business. USA is ranked #6.
Ease Of Doing Business Ranking – India Jumps 30 Places
It seems that PM Modi’s revolutionary business reforms, and laser-focused Digital India push is finally bearing fruits, and the evidence is right in front of us.
The World Bank report said,
“India stands out this year as one of the 10 economies that improved the most in the areas measured by doing business,”
Only Brunei, Thailand, Malawi and Kosovo showed better improvement than what India showed, in the last one year, when it comes to creating favourable conditions for doing business.
While we improved 12 spots last year, we were ranked #130 in 2016.
Insiders are stating that after last year’s disappointing results, PM Modi had specifically instructed all bureaucrats and officials to make sure that the rankings are improved in 2017.
What Improved This Year?
As per the World Bank report, India has shown considerable improvement in areas such as construction permits, landing credit, protecting minority investors, paying taxes, cross-border trade and resolving insolvency.
Interestingly, demonetization, the massive step against black money, was not considered in the Ease of Doing Business ranking methodology.
This was confirmed by Annette Dixon, vice-president, South Asia Region at World Bank, as he said,
“One-time event such as demonetization, which is particular only to India, was not taken into consideration,”
But Road Ahead Is Tough
Although we showed considerable improvement, we are still lagging behind countries like China, which is ranked #78; Japan which is ranked #34; Thailand, which is ranked #26 and even Bhutan, which is ranked #75.
As per the World Bank report, we are lacking behind in critical areas such as getting electricity, registering for property, besides cross-border trading permissions, enforcing contracts and more.
As per the report, “inefficient licensing and size restrictions” is wasting our precious resources, and reducing productivity. Manufacturing industry’s growth is actually disappointing, especially due to these reasons.
And this means less jobs.
The report said, “The study shows that removing these restrictions would boost total factor productivity by an estimated 40-60 percent,”
As per the data released in the report, and based on current observations, India needs considerable amount of reforms in these areas:
- Shortening time needed for incorporating startups
- Make rules for enforcing contracts
- Make simpler rules and regulations
- Archaic rules on audit should be eased
- Make the process of shutting down companies easier
- Optimally use Rs 10,000 crore startup fund
What else improvements are needed in India, for improving Ease of Doing Business in India? Do let us know by commenting right here!