India ranks 142/189 in WB's Doing Biz 2015 report, 2nd worst performing economy in South Asia
Updated: Sep 15, 2015 11:28:38am
New Delhi, Sept 15 (KNN) India ranks 142 out of 189 economies in the World Bank’s Doing Business 2015 report, the second worst performing economy in South Asia, said World Bank in its report adding that improving India’s regulatory framework for business is a key prerequisite for increasing investment in India and thereby creating jobs.
Singapore is at the top position, followed by New Zealand. Hong Kong SAR (China) is at the third spot. Other nations in the top 10 are Denmark (4th), Korea Republic (5th), Norway (6th), the US (7th), the UK (8th), Finland (9th) and Australia (10th).
According to the World Bank’s Enterprise Survey, businesses in India rank corruption as the number one constraint to growth, ahead of factors like electricity, access to finance and access to land.
Corruption arises due to lack of a transparent and effective regulatory framework; this is highlighted in a wide range of global analytics, it said.
The World Economic Forum’s Global Competitiveness Report ranks India as 71 out of 144 economies. India is ranked at 93rd on irregular payments and bribes, 59th on burden of government regulation, and 57th on the efficiency of the legal framework in settling disputes.
The assessment reveals that States are at very different levels of implementation of the 98-point action plan.
Gujarat took the top position in a list that ranked states on the ease of doing business. The government on Monday released the results of the ranking through a report on ‘Assessment of State Implementation of Business Reforms’.
Gujarat got a score of 71.14 per cent, based on the progress made on 98 action points identified to unleash competitive good governance. The score was, however, short of the minimum 75 per cent needed for a leadership status.
Andhra Pradesh, Jharkhand, Chhattisgarh and Madhya Pradesh feature in the top five in the report compiled by the Department of Industrial Policy and Promotion with technical assistance from the World Bank, consultancy firm KPMG, and CII and FICCI.
Punjab is ranked highest with an 81.4 per cent score for setting up a business. The state has launched an online single-window system for registrations and licences that cover most of the regulatory services.
Remarkably, Punjab is the only State in which the single window system allows application for all of the licenses studied in this assessment, although some others come very close, the report pointed.
Of the five top States, four are ruled by the BJP, and one (Andhra Pradesh) by the Telugu Desam Party, an ally.
"People love ranking but the challenge for states is to improve on various counts. We are excited to help them achieve this transformation," said Onno Ruhl, country director of World Bank.
No State has been able to demonstrate a fully comprehensive list of all licenses, NOCs and registrations required by a business to set up and operate, as a result of which no State allows entrepreneurs to filter the list by industry or number of employees to get a truly comprehensive sense of what his or her entire regulatory burden will entail, the report said.
Similarly, no State has focused on integrating data at sub-registrar, municipality and land records offices comprehensively to provide a sense of conclusive title on each property. Mutation is also not integrated with registration in most States.
On the inspections front, no State allows for all compliance inspections to be solely based on complaints with approval from the Head of Department. This implies that there is still a lot of scope for improvement in how inspections are administered in all States, the report added.
Investors and businesses often suffer from uncertainty about the exact regulatory requirements required to set up its operations. In addition to central registration and licensing, States often have a variety of “economy-wide” regulatory compliances; further, businesses in some industries may also require number of industry-specific licenses, noted the report.
Entrepreneurs are subject to various registrations for tax purposes at a State level, including VAT, CST, Entry tax, Entertainment tax, Luxury tax and Professional tax.
A separate registration number for each makes it difficult on the part of the entrepreneur to remember and file; similarly, separate registration numbers make it difficult for tax authorities to develop risk profiles as they often do not have access to the full tax compliance history of a business, said the report.
According to the report the maximum number of reforms has taken place in areas like taxation, VAT and CST registration, construction permits and land allotment. Reforms were lagging in starting electronic courts, tree-felling inspection and inspection of gratuity payment, wages and building plan among other things.
The full report can be accessed through the link below:
http://fisme.org.in/document/StateAssessmentReport_14Sept_2015.pdf
(KNN Bureau)
Singapore is at the top position, followed by New Zealand. Hong Kong SAR (China) is at the third spot. Other nations in the top 10 are Denmark (4th), Korea Republic (5th), Norway (6th), the US (7th), the UK (8th), Finland (9th) and Australia (10th).
According to the World Bank’s Enterprise Survey, businesses in India rank corruption as the number one constraint to growth, ahead of factors like electricity, access to finance and access to land.
Corruption arises due to lack of a transparent and effective regulatory framework; this is highlighted in a wide range of global analytics, it said.
The World Economic Forum’s Global Competitiveness Report ranks India as 71 out of 144 economies. India is ranked at 93rd on irregular payments and bribes, 59th on burden of government regulation, and 57th on the efficiency of the legal framework in settling disputes.
The assessment reveals that States are at very different levels of implementation of the 98-point action plan.
Gujarat took the top position in a list that ranked states on the ease of doing business. The government on Monday released the results of the ranking through a report on ‘Assessment of State Implementation of Business Reforms’.
Gujarat got a score of 71.14 per cent, based on the progress made on 98 action points identified to unleash competitive good governance. The score was, however, short of the minimum 75 per cent needed for a leadership status.
Andhra Pradesh, Jharkhand, Chhattisgarh and Madhya Pradesh feature in the top five in the report compiled by the Department of Industrial Policy and Promotion with technical assistance from the World Bank, consultancy firm KPMG, and CII and FICCI.
Punjab is ranked highest with an 81.4 per cent score for setting up a business. The state has launched an online single-window system for registrations and licences that cover most of the regulatory services.
Remarkably, Punjab is the only State in which the single window system allows application for all of the licenses studied in this assessment, although some others come very close, the report pointed.
Of the five top States, four are ruled by the BJP, and one (Andhra Pradesh) by the Telugu Desam Party, an ally.
"People love ranking but the challenge for states is to improve on various counts. We are excited to help them achieve this transformation," said Onno Ruhl, country director of World Bank.
No State has been able to demonstrate a fully comprehensive list of all licenses, NOCs and registrations required by a business to set up and operate, as a result of which no State allows entrepreneurs to filter the list by industry or number of employees to get a truly comprehensive sense of what his or her entire regulatory burden will entail, the report said.
Similarly, no State has focused on integrating data at sub-registrar, municipality and land records offices comprehensively to provide a sense of conclusive title on each property. Mutation is also not integrated with registration in most States.
On the inspections front, no State allows for all compliance inspections to be solely based on complaints with approval from the Head of Department. This implies that there is still a lot of scope for improvement in how inspections are administered in all States, the report added.
Investors and businesses often suffer from uncertainty about the exact regulatory requirements required to set up its operations. In addition to central registration and licensing, States often have a variety of “economy-wide” regulatory compliances; further, businesses in some industries may also require number of industry-specific licenses, noted the report.
Entrepreneurs are subject to various registrations for tax purposes at a State level, including VAT, CST, Entry tax, Entertainment tax, Luxury tax and Professional tax.
A separate registration number for each makes it difficult on the part of the entrepreneur to remember and file; similarly, separate registration numbers make it difficult for tax authorities to develop risk profiles as they often do not have access to the full tax compliance history of a business, said the report.
According to the report the maximum number of reforms has taken place in areas like taxation, VAT and CST registration, construction permits and land allotment. Reforms were lagging in starting electronic courts, tree-felling inspection and inspection of gratuity payment, wages and building plan among other things.
The full report can be accessed through the link below:
http://fisme.org.in/document/StateAssessmentReport_14Sept_2015.pdf
(KNN Bureau)
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