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India Placed 142 in 'Ease of Business' Ranking
Dec 20, 2014

India has slipped further on the World Bank's Ease of Doing Business index, at 142 among 189 countries as on June 1 from 134 last year, but the global lender has taken care to distance from this slide the new government which took charge barely a week earlier and soon set about improving the country's business environment and perception among overseas investors.

While India made starting a business easier by considerably reducing the registration fees, it also made it more difficult by introducing a requirement to file a declaration before the commencement of business operations.

The World Bank has made changes to how the rankings are compiled by increasing the number of indicators and extending the coverage to Delhi, the second largest business city in the country, which has also been taken into account this year along with Mumbai.

Doing Business 2014's 10 indicator sets are: starting a business, dealing with construction permits, getting electricity, registering property , paying taxes, trading across borders, getting credit, protecting investors, enforcing contracts, resolving insolvency . This year marks the 12th edition in the series, which has faced criticism from some governments for the methodology that is used.

Doing Business in India to Get Easy: In order to make India a better place to do business, the government is working to cut down the time for registering a business from 27 days to a single day. Towards this end, it has readied a raft of measures, such as, single registration for all labour laws, overhaul of tax systems, reduction in the number of permits required, easing up property registration, quick electricity connection and property registration - measures that are expected to make the country a friendlier investment destination.

The Department of Industrial Policy and Promotion (DIPP) has been made the nodal agency for pushing these procedural reforms. In turn, DIPP has set a time frame of 3-6 months for implementing the changes. It has asked all ministries to come on board and work to reform the regulatory structure and overhaul the investment climate. States are also being encouraged to join the Centre's efforts to improve the regulatory structure and cut down delays.


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