India Jumps 23 notches in Ease of Doing Business Ranking
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Businessmen in India have a reason to rejoice. In the report released by the World Bank, India is placed at the 77th spot that is, 23 notches higher than the last time. India was earlier at the rank 100. India is a top scorer among the South Asian countries.
Where did India Score?
Ease of doing business is an important marker for any economy because countries need to thrive on income that is generated domestically. Starting a business is not a cake walk especially in countries like India. “India made starting a business easier by fully integrating multiple application forms into a general incorporation form.” said the international agency. According to the World Bank, there are 11 indicators to measure a country and India scored several parameters that determine the ease of doing business ranking such as dealing with construction permits, getting electricity, getting credit, paying taxes and trading across borders.
India has been undergoing various sectoral and structural reforms. GST which has removed the cascading effect of taxes despite a few implementational glitches has still managed to push India in the rankings and the report acknowledges this aspect, “India also replaced the value-added tax with the GST (Goods and Services Tax) for which the registration process is faster.” The report also recognized that Mumbai abolished the practice of site inspections for registering companies under the Shops and Establishments Act.
The report highlights that this marker of business is important in terms of “national competitiveness.” How well a nation is doing is reflected by the growth and prosperity of its SMEs or Small and Medium Enterprises, something India has been struggling for a long time but the efforts are manifesting into concrete results.
Asians as Top Scorers
New Zealand has clinched the top spot in the ranking system. Asian countries are trailblazing the list with Singapore, Hong Kong and Korea at the second, fourth and fifth position respectively. World superpowers such as the U.S., which is caught in a trade war with China, and U.K. are tightly clutching to the top 10 with ninth and tenth positions respectively. China remains in an ever progressive mode by its leap at the 46th position from last time’s 78th. The scoreboard consisting of 190 economies in total placed Somalia in the last.
The Commerce and Industry statement said in a statement, “India's leap of 23 ranks in the ease of doing business ranking is significant considering that last year India has improved its ranking by 30 places, a rare feat for any large country of the size of India.”
Prime Minister Narendra Modi said that the government is eyeing top 50 for next year and all reforms and measures that are going to be taken will be thought in similar lines.