
th in 2012 just falling behind 131st ranked West Bank & Gaza (one country). While one leading Indian newspaper described the news as a big vindication of the NDA Government, a Stock Market Analyst called it a blockbuster development which would surely shore up international interest in the country. So what is the World Bank’s ease of doing business index? According to the Bank, economies are ranked on ten topics – 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. A high ease of doing business ranking, the Bank surmises, means the regulatory environment is more conducive to the starting and operation of a local firm. Sort of the Mecca for all investors. When India was rubbing shoulders with war-torn Afghanistan in the bank’s Index List Indian governments dismissed the World Bank’s findings as bunkum. The present government, however, has taken the Bank ranking more seriously and worked to improve on the parameters to get India’s ranking up higher in the list. Is that very difficult? Yes and No. No. Because the Bank’s rank is only based on a survey of business and industry in two Indian cities – Delhi and Mumbai. The Bank claims but many may well doubt how authentic and exhaustive the exercise is. The Bank itself has comprehensive footage of words to justify its thoroughness. There are no surprises in what the Bank is looking for and the government can work on policy and procedural improvement in these two cities to win over the Bank. The second answer is Yes. Because while India can easily scale the Bank Index year on year, the fact remains that the country actually needs to be a place where there is ease of doing business. And that task is difficult but by no means impossible. If we are going to be one of the top economies of the globe and have equitable economic and social development across the country, governments – both at the Centre and in the States – need to work on policy and implementation to ease the present herculean mess of doing business in all parts of the country. And in that sense the 10 areas identified by the World Bank is a good place to start. India today has the manpower, skill and commitment to fast-forward economic growth. What the country has always been waiting for are the right policy makers and administrative action. Perhaps then we will all be doing High-Fives for the right reasons. (Mainak De tweets @mainakde) ]]>
Prime Minister Narendra Modi on Saturday attacked Congress for questioning the World Bank Report on ease of doing business in India and said with GST and other reforms, its report next year would show further improvement in ranking. The Prime Minister said those who had worked with the World Bank previously were now raising doubts over India’s ranking. “Some people do not understand the impact of India’s ranking going up from 142 to 100, they are not bothered by it. After coming up 42 positions from 142, I don’t feel like sleeping,” he said while addressing ‘India’s Business Reforms’ event at the Pravasi Bharatiya Kendra here. Modi also said: “I am a Prime Minister who has never seen the World Bank building even while those who were there (in government) earlier knew the World Bank very well. They are now questioning the World Bank ranking.” Modi said he did not want to “sleep” over the 30 place jump this year – the biggest leap by India ever, and wants to do more. The Prime Minister said India would be at an even better place in 2018 ranking since issues raised by traders, businesses on Goods and Services Tax (GST) have been positively accepted by the government. The ranking took into account reforms initiated only till May-end, he said. It did not reflect the impact of GST, which was implemented from July 1, he added. The GST has not just integrated the nation of 1.2 billion into one market with one tax rate but also provided a stable and transparent taxation regime, he said. “This reform plus others that have already happened but need gestation and stabilisation time before they are taken into account by the World Bank, will improve the ranking. All these combined, gives me confidence that India will occupy a place of pride in World Bank’s report in 2018 and the year thereafter,” Modi said. The Prime Minister said when the government decided to bring GST, people were unsure about its implementation. Three months after the tax reform, the GST Council meeting was organised and issues raised by traders and business communities were addressed, he said. He said the GST Council at its next meeting on November 9-10 will make necessary changes. On the implementation of GST, Modi said GST is the biggest tax reform in the history of India and it was “fulfilling global expectations”. The Prime Minister said that bringing change to the country and its 1.25 billion people was his mission. He said that ease of doing business also leads to ease in life. He said India has moved 19 places up on the logistics performance index. Modi said India has reached a position from where it is easier to improve further. “Our efforts have gathered momentum. The World Bank has recognised the tremendous work done by us to improve the ease of doing business. In the short time of three years, we have moved up 42 ranks. India has delivered with the highest improvement in rank in a year,” Modi said on the economy. Jump in ease of doing business ranking is an example of good governance, Modi said. “Our mantra is ‘reform’, ‘transform’ and ‘perform'”, Modi said. The Prime Minister said the government is improving the investment climate in the country. “More than 90 per cent of FDI approvals have been put on automatic route. FDI inflow has been at all time high. Total FDI has gone up by 67 per cent in the last three years,” said Modi. Emphasising on the importance of technology, he said the use of technology should maximise governance. “Along with technology we also need to change mindsets. The past mindset of excessive control should be replaced with minimum government maximum governance.”
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It has never been easier to do business in India. India welcomes the world to explore economic opportunities our nation has to offer!
— Narendra Modi (@narendramodi) October 31, 2017 “India has moved to 100th rank as a result of a number of reforms by the government. India is moving ahead in absolute ranking as well,” Annette Dixon, Vice President, South Asia region, told reporters earlier in the day. It will be only over a period of 1-3 years that the full impact of GST reform on ease of doing business can be assessed, she added. The report captures reforms implemented in 190 countries between the period June 2, 2016 to June 1, 2017.When you visit any web site, it may store or retrieve information on your browser, mostly in the form of cookies. Control your personal Cookie Services here.