World Bank released its annual Ease of Doing Business report and India has fared quite well. India jumped 23 ranks in the Ease of doing Index in 2018 to 77 from 100 in 2017.
World Bank ranks 190 countries taking into account 10 indicators from the entire process of business development, starting from establishing the business to resolving insolvency. The 10 properties that this Index takes into consideration to rank these 190 countries are: –
- Starting a business
- Construction permits
- Getting credit
- Protecting minority investors
- Paying taxes
- Getting electricity
- Registering property
- Border Trade
- Enforcing contracts
- Resolving Insolvency
This improvement statistically can pave way for humungous influx of foreign investment into the country. India’s strong will to reform and improve the business climate for small and medium enterprises has resulted in this enhancement of trust and rank in this report.
World Bank has set May 1st as the deadline for measurement for next year’s measurement. By that time several other measures taken by the government in aspects like Insolvency Bankruptcy Code, Goods and Services Tax would reflect their effects. However there are many areas like registering a property, starting a business, taxation, insolvency and enforcing a contract which need more attention from the government.
The measures taken by the government last year are: –
- Fully integrating multiple application forms into a general incorporation form
- Replacement of Value Added Tax with The Goods and Services Tax
- Mumbai abolishes the practice of site inspection process for registering companies under the shop and establishment acts.
Apart from India another South Asian country that fared well in the report is Afghanistan. Both India and Afghanistan made it to top 10 global improvers list.
