Study Material | Test Series | Crash Course
Drishti IAS
call1800-121-6260 / 011-47532596
Drishti The Vision Foundation
(A unit of VDK Eduventures Pvt. Ltd.)
Current Affairs Crash Course Download Player Download Android App
India Stands 130th in Doing Business Report
Nov 05, 2016

India improved its position from last year’s 134 to 130 in the recently released World Bank report—‘Doing Business 2017: Equal Opportunity for All’ Last year’s report ranked India at 140, but this year’s report features the recalculated 2015 rankings, in which India comes at 134, computed according to a new methodology. 

  • This makes India the lowest-ranked country among the BRICS (Brazil, Russia, India, China and South Africa) nations. Russia is placed at 40, South Africa at 74, China at 78 and Brazil at 123.
  • New Zealand tops this year’s ranking, dethroning Singapore. The World Bank highlighted Indonesia, Pakistan, Brunei and seven other economies for making the biggest improvements in their business environments in the past year.
  • Among South Asian economies, India made the biggest improvement in business regulation, increasing its distance to frontier score by 2 points and moving up in the ease of doing business ranking from 134 to 130. 
  • India ranks in the top 10 in Protecting Minority Investors (8), as its law grants minority shareholders strong protection from conflicts of interest and provides extensive rights to shareholders in major corporate governance. 
  • Getting an electricity connection in Delhi and Mumbai, the two Indian cities covered by the survey, has been made vastly easier. Two years ago, the process took an average Delhi company more than four months to complete. Today, it would require 45 days, and cost significantly less than it used to. India this year ranks 26th on the ease of getting a power connection, up from 51st last year.
  • The number of days it takes to start a new business has gone up marginally from last year, from 28.4 to 29 this year, but the report has taken note of other measures in the last year that made starting a business easier. 
  • The report commended the legislative changes that eliminated the minimum capital requirement and the requirement to obtain a certificate to start business operations. 
  • The report said, “It is still the case that in India, it takes 29 days to get a business started.  It’s a lot less than it used to be, which is good, but it’s certainly quite a bit higher than the global average. There are now 132 countries where it takes less than 20 days to get a business started, India is not one of them.
  • Still, due to even-larger improvements in other economies, India’s ranking in several areas fell this year. On the ease of starting a business, it slipped to 155th from 151st. On dealing with construction permits, it stumbled to 185th from 184th. On paying taxes, it held steady at 172nd.

Out of 10 parameters, India’s ranking this year improved in two, remained unchanged in three and worsened in five. The government was expecting at least a 10-spot jump on the back of several ease of doing business measures taken in the past two years. The World Bank, however, does not take into account government notifications of reforms, basing the rankings instead on field surveys and interviews with corporate lawyers and company executives.

The World Bank Doing Business reports, started in 2002, review business regulations and their enforcement across 189 countries. 

 


Helpline Number : 87501 87501
To Subscribe Newsletter and Get Updates.

http://www.drishtiias.com/upsc-current-affairs-article-India-Stands-130th-in-Doing-Business-Report