India fares better in Doing Business; climbs 12 spots to rank 130
Updated: Oct 28, 2015 04:18:07pm
New Delhi, Oct 28 (KNN) India has improved its ranking in World Bank's doing business report by rising up to 130 out of 189 economies from 142 in 2015, marking a significant shift in trend after several years of decline in ranking.
Doing Business 2016: Measuring Regulatory Quality and Efficiency, released on Tuesday, captures reforms implemented in 189 countries in the period June 2, 2014 to June 1, 2015, according to an official release.
In the global ranking stakes, Singapore retains its top spot while others joining it on the list of the top 10 economies with the most business-friendly regulatory environments are New Zealand, in second place; Denmark (3); Republic of Korea (4); Hong Kong SAR, China (5); United Kingdom (6); United States (7); Sweden (8); Norway (9); and Finland (10).
As far as India is concerned, the report highlights two reforms that India has implemented during the past year. It was able to amend the Companies Act in just under six months and made starting a business easier by eliminating the minimum capital requirement and the need to obtain a certificate to commence business operations, saving entrepreneurs an unnecessary procedure and five days’ wait time.
In both Delhi and Mumbai the process for getting an electricity connection was made simpler and faster. The utility in Delhi made the process for getting an electricity connection simpler and faster by eliminating the internal writing inspection by the Electrical Inspectorate. At the same time, the utility in Mumbai reduced the procedures and time required to connect to electricity by improving internal work processes.
The report also highlights a number of reforms already underway in India which were not fully felt by the majority of businesses by June 1, 2015 but will help India further improve its rank in the coming years. In particular, it notes India’s efforts to streamline the process of obtaining a construction permit in Mumbai, and new systems for e-filing and e-payment of taxes.
Further, ongoing efforts to introduce and enact the Bankruptcy Code, movement on operationalizing commercial benches and courts in Delhi and Mumbai, efforts to introduce automation in judicial processes in courts, further digitization of land records, and integration of registration and mutation processes, and introduction and launch of National Single Window for trade may also help India improve its rank in future.
If the efforts are sustained over the next several years, they could lead to substantial benefits for Indian entrepreneurs—along with potential gains in economic growth and job creation, the report states.
This year’s report unveils a two-year effort to significantly add more measurements of the quality of institutions supporting the business environment, to better capture realities on the ground. For example, in the area of Registering Property, a new index on the quality of land administration measures the reliability, transparency and geographic coverage of land administration systems as well as aspects of dispute resolution for land issues.
As for South Asia, six of the region’s eight economies implemented a total of nine reforms – the second largest share of any region after Europe and Central Asia. Economies that implemented several reforms included India, Bhutan and Sri Lanka. The region’s highest ranked economy is Bhutan (71), followed by Nepal (99), Sri Lanka (107), Pakistan (138) and Bangladesh (174).
Economies are ranked on their ease of doing business, from 1–189. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm. The rankings are determined by sorting the aggregate distance to frontier scores on 10 topics, each consisting of several indicators, giving equal weight to each topic. The rankings for all economies are benchmarked to June 2015.
Doing Business measures regulations affecting 11 areas of the life of a business. Ten of these areas are included in this year’s ranking on the ease of doing business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures labour market regulation, which is not included in this year’s ranking. (KNN Bureau)
Doing Business 2016: Measuring Regulatory Quality and Efficiency, released on Tuesday, captures reforms implemented in 189 countries in the period June 2, 2014 to June 1, 2015, according to an official release.
In the global ranking stakes, Singapore retains its top spot while others joining it on the list of the top 10 economies with the most business-friendly regulatory environments are New Zealand, in second place; Denmark (3); Republic of Korea (4); Hong Kong SAR, China (5); United Kingdom (6); United States (7); Sweden (8); Norway (9); and Finland (10).
As far as India is concerned, the report highlights two reforms that India has implemented during the past year. It was able to amend the Companies Act in just under six months and made starting a business easier by eliminating the minimum capital requirement and the need to obtain a certificate to commence business operations, saving entrepreneurs an unnecessary procedure and five days’ wait time.
In both Delhi and Mumbai the process for getting an electricity connection was made simpler and faster. The utility in Delhi made the process for getting an electricity connection simpler and faster by eliminating the internal writing inspection by the Electrical Inspectorate. At the same time, the utility in Mumbai reduced the procedures and time required to connect to electricity by improving internal work processes.
The report also highlights a number of reforms already underway in India which were not fully felt by the majority of businesses by June 1, 2015 but will help India further improve its rank in the coming years. In particular, it notes India’s efforts to streamline the process of obtaining a construction permit in Mumbai, and new systems for e-filing and e-payment of taxes.
Further, ongoing efforts to introduce and enact the Bankruptcy Code, movement on operationalizing commercial benches and courts in Delhi and Mumbai, efforts to introduce automation in judicial processes in courts, further digitization of land records, and integration of registration and mutation processes, and introduction and launch of National Single Window for trade may also help India improve its rank in future.
If the efforts are sustained over the next several years, they could lead to substantial benefits for Indian entrepreneurs—along with potential gains in economic growth and job creation, the report states.
This year’s report unveils a two-year effort to significantly add more measurements of the quality of institutions supporting the business environment, to better capture realities on the ground. For example, in the area of Registering Property, a new index on the quality of land administration measures the reliability, transparency and geographic coverage of land administration systems as well as aspects of dispute resolution for land issues.
As for South Asia, six of the region’s eight economies implemented a total of nine reforms – the second largest share of any region after Europe and Central Asia. Economies that implemented several reforms included India, Bhutan and Sri Lanka. The region’s highest ranked economy is Bhutan (71), followed by Nepal (99), Sri Lanka (107), Pakistan (138) and Bangladesh (174).
Economies are ranked on their ease of doing business, from 1–189. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm. The rankings are determined by sorting the aggregate distance to frontier scores on 10 topics, each consisting of several indicators, giving equal weight to each topic. The rankings for all economies are benchmarked to June 2015.
Doing Business measures regulations affecting 11 areas of the life of a business. Ten of these areas are included in this year’s ranking on the ease of doing business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures labour market regulation, which is not included in this year’s ranking. (KNN Bureau)
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