In the latest ranking for countries in ease of doing business ranking, the World Bank has placed India 63rd out of 190 countries — an improvement of 14 places from its 77th position last year.
- The country’s score improved from 3 last year to 71.0 this year, as per The Doing Business 2020 study.
- The indicator measures the performance of countries across 10 different dimensions in the 12-month period ending May 1, 2019.
- The report called India’s reform efforts “particularly commendable” given the country’s size.
The Doing Business 2020 study:
- The indicator, however, is not necessarily representative of each country. For 11 countries, two cities were selected to construct the indicator – Delhi and Mumbai in the case of India.
- India also featured, for the third consecutive year, in the list of 10 economies where business climates had improved the most.
- This list comprises Saudi Arabia, Jordan, Togo, Bahrain, Tajikistan, Pakistan, Kuwait, China, India and Nigeria.
- The country’s improved ranking was on the back of four reforms: starting a business, dealing with construction permits, trading across borders and resolving insolvency.
- The report said there were improvements in the efficiency of acquiring building permits. Building a warehouse, for example, cost 4% of the warehouse value compared to 5.7% in the preceding year.
- Imports and exports became easier with a single electronic platform for trade stakeholders, among other things.
- The ‘resolving insolvency’ indicator, however, was mixed.
- The reorganization proceedings had been promoted in practice, a positive for the indicator, but resolving insolvency had also been made harder because dissenting creditors would receive less under reorganization than under liquidation.
- Additionally, the report noted that the ‘Make in India’ program and the government’s attention to the Ease of Doing Business indicator were a means to demonstrate ‘tangible progress’. The report also noted the government’s goal of making it to the top 50 list by 2020.
- However, India’s performance is still below par in enforcing contracts, registering property, starting a business and paying taxes
- To improve more in the rankings, governments can foster market-oriented development and broad-based growth by creating rules that help businesses launch, hire, and expand.