India ranks 130th, move up by only one rank in ease of doing business index

Despite many efforts of the government, India remained at the 130th position out of 190 countries globally, and managed to move up just one rank in the World Bank's ease of doing business ranking this year, even the one place improvement was because the last year's ranking was revised lower to 131 from which the country has improved its place by one spot. The government was expecting at least a 10-spot jump on the back of several ease of doing business measures taken in the past two years. The list of countries in the Doing Business 2017 is topped by New Zealand while Singapore is ranked second.

The rankings are based on ten parameters which includes 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. Out of 10 parameters, India’s ranking this year improved in two, remained unchanged in three and worsened in five. Though, in the ranking, India has made a substantial improvement in some areas such as electricity connection, but slippage in other areas, including payment of taxes and enforcing contracts, prevented improvement on the rankings that is followed widely by global investors.

The report titled ‘Doing Business 2017: Equal Opportunity for All’,noted that the country has embarked on a fast-paced reform path, and the Doing Business 2017 report acknowledged a number of substantial improvements, mentioning electricity connections to businesses, paying taxes, electronic system for paying employee state insurance contributions, electronic filing of integrated customs declarations, the Companies (Amendment) Act, passage of the commercial courts and the Insolvency and Bankruptcy Code.

The government has been making efforts to further improve the ease of doing business and aims to bring the country in the top 50. Expressing disappointment over no change in India's ranking in the World Bank's index, Indian government regretted that the report did not take into consideration 12 key reforms undertaken by the government. Industry secretary Ramesh Abhishek has said that the government will soon appoint an external agency and launch a portal for round-the-clock feedback from users on the policy steps launched by the government.