India Jumps From 100th To 77th Position In This Year's Ease Of Doing Business Index
India attained the 77th spot in the World Bank’s ease of doing the business index. It has become the top-ranked country in South Asia for the first time. India has climbed 23 places from the last year’s ranking, last year, it was on 100th position, and this year it has achieved the 77th position in the list of 190 countries according to the report by NDTV. The report was released in New Delhi on 31st October.
This shows the government’s effort to ease the process of doing business, creating a business-friendly environment and attracting foreign investment in the domestic economic sphere. Finance Minister Arun Jaitley said, “We have made progress in leaps and bounds, probably the most significant in the history of Ease of Doing Business”. He also said that to get such an achievement one has to crack the code.
India at the 77th position
World Bank’s Ease of Doing Business Index is decided on the basis of 10 parameters. These parameters include starting a business, getting electricity, registering property and paying taxes. World Bank believes that these parameters best describe the ease (or its lack thereof) with which a new business can operate.
It may be noted that for this year’s ranking, two metropolitan cities of India- Delhi and Mumbai were considered.
Experts believe that even as the better condition in these two major cities, paves way for other Indian cities to take inspiration from, however, arriving at the ranking based on just these two would mean it is hardly representative.
What is Ease Of Doing Business Index?
The World Bank’s Ease of doing business is an index; they define an aggregate figure which includes different parameters and the ease of doing business. The business report ranks countries by the distance to frontier (DTF), which shows the gap of an economy in global practice.
The World Bank has acknowledged India as one of the top risers among the economies. It has improved its ranking in 6 out of 10 indicators this year. According to the report in the three parameters of – getting electricity, getting credit and protecting minority investors, department of industrial policy and promotion India ranks in the top 25 countries in the world. The first rank was given to New Zealand followed by Singapore, Denmark and Hongkong. The USA is placed on eighth rank and China on 46th, as reported by Economic Times.
Shanta Devarajan, the World Bank’s Senior Director for Development Economics and Acting Chief Economist, said, “India is one of our top reformers, one of our top 10 performers. It was also on the top 10 list the last year.. two years in a row, which is sometimes very difficult to do.” She also praised the Prime Minister for his approach towards implementing reforms and initiating measures to make it possible to ease doing business in the country.
According to World Bank India can improve its position by applying the reform agenda as it did during last year when it implements six significant reforms. The officials have said India will develop further in future as the result of some changes are still to be realised and absorbed entirely in the time to come according to the report by India Today.
Areas where India lags
There are few parameters where India is lagging, there are certain areas in which the country fails to show any improvement and sign of betterment. For instance, India takes on an average of 1,445 days to resolve a commercial dispute. Apart from this, the registration of properties is another graving issue.