India has leapt 30 ranks over its rank of 130 in the Doing Business Report 2017, according to the the World Bank, released the Doing Business (DB) Report, 2018 on 31 st 2017. In an communique, the Department of Industrial Policy and Promotion (DIPP) announced that India ranks 100 among 190 countries assessed by the Doing Business Team. This edition of the report acknowledges India as a top improver, with an improvement of 30 ranks compared to last year’s report, the highest jump in rank of any country in the DB Report, 2018. India is the only country in South Asia and BRICS economies to feature among most improved economies of the DB Report this year.
The DB Report is an assessment of 190 economies and covers 10 indicators which span the lifecycle of a business. The table below provides a comparison of this year’s and last year’s report. India has improved its rank in 6 out of 10 indicators and has moved closer to international best practices (Distance to Frontier score). The credit for this significant improvement is credited to the mantra of “Reform, Perform, Transform” given by the Prime Minister, wherein a strong leadership has provided the political will to carry out comprehensive and complex reforms, supported by a bureaucracy committed to perform.
The Government has undertaken an extensive exercise of stakeholder consultations, identification of user needs, government process re-engineering to match Government rules and procedures with user expectations and streamlined them to create a more conducive business environment. An extensive exercise is also undertaken to increase awareness among users about reforms to ensure extensive use of newly created systems.
Major achievements in the World Bank in the Doing Business Report
Resolving Insolvency – Rank improved from 136 to 103
Paying Taxes – Rank improved from 172 to 119
Getting Credit – Rank improved from 44 to 29
Enforcing Contracts – Rank improved from 172 to 164
Protecting Minority Investors – Rank improved from 13 to 4
Construction Permits – Rank improved from 185 to 181
PM hails India’s historic jump in ‘Ease of Doing Business’ rankings
The Prime Minister, Narendra Modi has hailed India’s historic jump of 30 ranks in the World Bank’s Doing Business Report, 2018 released today. India’s rank has risen to 100 in the latest report compared to 130 in the Doing Business Report, 2017. While terming the improvement in the rankings as historic, the Prime Minister in a series of tweets, said that the jump is the outcome of the all-round and multi-sectoral reform push of Team India.
“Historic jump in ‘Ease of Doing Business’ rankings is the outcome of the all-round & multi-sectoral reform push of Team India. Easier business environment is leading to historic opportunities for our entrepreneurs, particularly MSME sector & bringing more prosperity. Over the last 3 years we have seen a spirit of positive competition among states towards making business easier. This has been beneficial. It has never been easier to do business in India. India welcomes the world to explore economic opportunities our nation has to offer! Guided by the Mantra of ‘Reform, Perform & Transform’ we are determined to further improve our rankings & scale greater economic growth”, the Prime Minister said.
India Inc expects improvement in India’s ranking in World Bank’s Ease of Doing Business Report will boost investor confidence
At time, when the Indian economy has been the focal point of attack by the opposition on the Modi Government- the World Banks Ease of Doing Business Report has surely added a spark in eyes of India Inc.
The Confederation of Indian Industry (CII) warmly felicitated the Government led by Prime Minister Narendra Modi for achieving a milestone shift of 30 places in India’s rank in just one year in the World Bank’s Doing Business Report 2018 released today. The report placed India at 100, up from 130 last year and 142 just three years ago.
“Prime Minister undertook a moonshot challenge to improve India’s rank and he has delivered through proactive leadership and constant monitoring with the rank going up from 130 to 100 within a year. This imparts a huge fillip to investors that the reform process is on track and would continue to be addressed intensively,” said Shobana Kamineni, President, CII.
“The Government has strategically addressed choke points of the business ecosystem in a mission mode to improve India’s rank and break into the list of top reforming nations. With the active participation of the states, industry is seeing visible impact at the grassroots in the investment climate,” she added.
Echoing similar sentiments, Pankaj Patel, President, FICCI, said, “The focused attempt with which the Government of India has sought to improve India’s ranking in the World Bank’s “Doing Business Rankings” has been rewarded with a significant jump in the rank from 130 to 100.”
“FICCI welcomes this. The policy effort that has contributed to this has been broad-based and encompasses a range of areas including taxation, finance, legal and administrative procedures. With GST, the government has laid the foundation for a more efficient indirect tax system and likewise, with the enactment of Insolvency and Bankruptcy Code, India now has an efficient institutional mechanism for ease of exit as well. Significant steps have also been taken to simplify and speed-up the entry and starting up of businesses”, he added.
“An improvement by 30 places in the rankings is significant and should boost investor confidence in doing business in India. FICCI would continue to seek policy measures and bureaucratic reform that would contribute to a sustained improvement in India’s rank. As a nation of entrepreneurs India is destined to be among the top economic powers of the world if governments continue to make it easier for businessmen and innovators to invest in India.” said Patel.
“The responsibility for making it easier to do business in India is that of both the Central and State governments. Reform at the State level has become even more important”, added Patel.
CII lauded the Government for initiatives and actions such as single window for building approvals, digitisation, and easier tax compliance, which have been noted in the World Bank report. Digital platforms such as ICEGATE, SWIFT and SPICe have placed clearances and approvals for starting a business, trading across borders and other processes online for transparency and efficiency. The Distance to Frontier scores have improved notably across most parameters, going up by 4.71 to cross 60, indicating rapid progress, said CII.
The CII press release noted that with the huge jump in Doing Business rankings, the country emerges as an even more attractive place for investors. There are indications of the Indian economy turning the corner for faster growth in the second half of the year. FDI in the last three years has crossed $175 billion, more than a third of the total since April 2000, and it continues to increase at 37% in the first quarter of 2017-18, said CII.
CII expects that the Government’s strong action under the Business Reform Action Plan 2017 with partnership of states covering regulations, labour returns, commercial dispute resolution and so on would further push up India’s rank next year.