New Delhi: In a shot in the arm for the Narendra Modi government, India made a big jump in World Bank’s Ease of Doing Business ranking. Ranked at 77th spot, India made a leap of 23 places from its last year’s rank of 100 among 190 nations. Also Read - 'COVID-19 Vaccine Will Come by Next Year', Health Expert Ashish Jha to Rahul Gandhi | LIVE
In 2017, India had jumped 30 places to 100th place in World Bank’s ‘ease of doing business’ index and was one of the 10 countries that had shown improvement in 8 out of 10 indicators for “Doing Business”. Also Read - India-China Ladakh Face-off: PM Modi Chairs High-Level Meet, Rajnath Too Takes Stock of Situation | Top 10 Points
This year too, India has been recognised among 10 countries that have showed improvement on World Bank’s indicators that decide the ranking of “ease of doing business”. Also Read - Ladakh Standoff: Xi Jinping Tells Chinese Military to Scale-up Battle Preparedness
In its annual ‘Doing Business’ 2019 report, World Bank said India has improved on six of the 10 parameters relating to starting and doing business in a country.
These parameters include ease of starting a business, construction permits, getting electricity, getting credit, paying taxes, trade across borders, enforcing contracts and resolving insolvency.
PM Modi ‘Delightful’, Govt Hopeful of Entering Top-50 Club
Elated over the big leap in ‘ease of doing business’ raking, PM Modi said, “Delighted at yet another rise in India’s ‘Ease of Doing Business’ rank. We are unwavering in our commitment towards economic reforms, which will ensure an environment that fosters industry, investment and opportunities”.
When the government was formed, India was ranked at 142nd spot, said Finance Minister Arun Jaitley as he highlighted New Delhi’s significant jump in World Bank’s ‘ease of doing business’ index in the last four years.
“When we came to power the PM had said that we have to come within the top 50 ranks. Today, we are at Rank 77. DIPP has worked on how to up the ranking on each criterion. You have to crack the code and try and improve on the criterion in which we lack,” he said.
Crediting the economic reforms brought by the government for the jump in ‘ease of doing business’ index, Jaitley said registering property, Starting a Business, Insolvency, Enforcement of Contracts and Taxation are the key areas of improvement.
He added that by focusing on key these key areas, India can achieve PM Modi’s target of entering the top 50 club.
“The ease of doing business is to maximise the governance with minimum government personnel and procedures and the investment environment is guided by this,” he said.
Entering Top-50 Bracket Tough Nut to Crack: World Bank Officials
India, which jumped more than 50 spots in the ease of doing business ranking in just two years, has emerged as one of the top reformers, World Bank officials said Wednesday, but cautioned that entering the top 50 bracket is tough as the next set of reforms is difficult.
In the coming years, India could very well improve its ranking further given that the impact of some of the ongoing reforms has not been fully realised or captured yet, they said.
At the same time, they cautioned that entering the top 50 bracket — a goal set by Prime Minister Narendra Modi in 2014 — is a tough nut to crack, even though at this point of time, it no longer seems to be impossible for India.
“India is one of our top reformers, one of our top 10 performers. It was also on the top 10 list last year.. Two years in a row, which is sometimes very difficult to do,” Shanta Devarajan, the World Bank’s Senior Director for Development Economics and Acting Chief Economist, told PTI in an interview.
As per the latest World Bank report, there are some areas where India is lagging far behind the global rankings, the officials pointed out. For instance, India is placed at 137th when it comes to starting a business. India takes 1,445 days on an average to resolve a commercial dispute. In high income economies, it is 582 days.
India is also lagging behind when it comes to registration of properties where it is ranked 166 among 190 countries.
Rita Ramalho, Senior Manager of the World Bank’s Global Indicators Group said such massive improvement in India’s ranking in few years means that for a domestic entrepreneur now it is easier, less cumbersome to do business.
Ramalho said the new ranking is reflective of the reform announced in the previous years, but was implemented last year like the Goods and Services Tax (GST).
The ranking comes as a shot in the arm for the Narendra Modi government which faces strong dissenting voices from opposition parties ahead of the general elections next year.
India was ranked at the 142nd position among 190 nations when the Modi government came to power in 2014. It rose to 100th spot in the last ranking from the 131st rank in the previous year.
New Zealand topped the list of 190 countries in ease of doing business, followed by Singapore, Denmark, and Hong Kong. The United States is placed eight and China has been ranked 46th. Neighbouring Pakistan is placed at 136.