Notching up the biggest improvement among all countries, India has jumped 30 places to rank 100th in the World Bank's 'ease of doing business' ranking among 190 countries, on the back of slew of reforms in taxation, licensing, investor protection and bankruptcy resolution. Last year, India was ranked 130th, this is the first time India has broken into top 100 nations. The report also recognised India as one of the top 10 improvers in this year’s assessment, having implemented reforms in eight out of 10 Doing Business indicators.
In its annual report 'Doing Business 2018: Reforming to Create Jobs', the World Bank (WB) has said that India's ranking reflects nearly half of the 37 reforms, adopted since 2003, implemented in the last four years. However, the ranking does not take into account business environment post implementation of the Goods and Services Tax (GST), which weaved the country of 1.3 billion into one market with one tax and removed inter-state barriers for trade. It also said India is the only large country this year to have achieved such a significant shift. On the ‘distance to frontier metric’, one of the key indicators in the survey, India’s score went from 56.05 in Doing Business 2017 to 60.76 in Doing Business 2018.
As per the report, the parameters that witnessed improvement in 2016-17 were, India making it faster for start business, reduction in procedures and time required to obtain building permit, easier access to credit, protecting minority investors, ease of paying taxes, trading across borders, enforcing contracts and making resolving insolvency easier. But it still lags in areas such as starting a business, enforcing contracts and dealing with construction permits. The report pointed out that it takes 30 days now to register a new business, down from 127 days 15 years ago, but the number of procedures is still cumbersome for local entrepreneurs who still need to go through 12 procedures.
According to the World Bank, New Zealand is the easiest place on the planet to do business, followed by Singapore, Denmark, South Korea and Hong Kong. The US and the UK are ranked 6th and 7th on the list. Among BRICS countries, Russia tops the list with 35th position, followed by China which has retained its ranking at the 78th place for the second consecutive year.
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