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Ease Of Doing Business In India Improves, Ranking Jumps 12 Spots


Here is some news that will surely cheer you up if you are an entrepreneur interested in doing business in India. India’s ranking has improved by 12 notches with respect to the ease of doing business in India. Amongst the list of 189 countries, India now stands 130. This ranking was released by the World Bank as part of its annual Doing Business in 2016 report.

According to Kaushik Basu, World Bank’s Chief Economist and Senior Vice President, “For any big economy, a rank improvement of 12 is a remarkable achievement. Going from 142 in the world to 130, as India has done, is very good sign. It gives a good signal about the way things are moving in India.” It is a particular pertinent point, especially when coming from Kaushik Basu, who was at the helm of economic affairs in India during the previous government in India.

The World Bank report further reiterates that the improvement in ranking has been a direct outcome of implementation of key reform measures like streamlining the business operation procedure and elimination of paid-in minimum capital and a certificate to start a business. The Director of the Global Indicators Group World Bank, Lopez Claros says, “(India) they are in the middle of what appears to be a very, very ambitious process of reforms affecting a broad range of areas. My expectation, therefore, is that if this process continues, if it is sustained, and the authorities show the degree of determination which has been in evidence in the last year, then we could see substantial improvements in coming year.”

Perhaps in this context it makes sense to do a comparative study of how it fares against its immediate neighbours in the report. China has been ranked within the top 100 at 84 while Pakistan stands at 138th. Experts believe that India’s improvement in ranking will get a further boost if it expedites some fundamental reforms like GST implementation and working towards a more inclusive growth. Alongwith cutting down bureaucratic delays and transactional costs, a constructive effort at providing quality and comprehensive infrastructure is extremely important. The momentum in this area needs to be continuous and unabetted.

So will India break into the 100 zone next year? Well, Amitabh Kant, Secretary in Department of Industrial Policy & Promotion says, “”We hope to jump 30-40 places in next year’s report. Given the pace of reforms, we will definitely break into the top 100 next year.”

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