Following India’s double-digit jump of 30 places to the 100th rank on World Bank’s ‘Ease of Doing Business’ index, Finance Minister Arun Jaitley on Tuesday pointed out that this is the highest jump that any country has made in the ranking.
Jaitley also said that Prime Minister Narendra Modi’s vision of taking India to top 50 in the ‘ease of doing business’ index was a doable task.
He added that India was the only country named in the World Bank report for undertaking structural reforms.
“We were ranked 142 in 2014, and 130 last year in ease of doing business World Bank list. The World Bank report says India has been undertaking numerous structural reforms,” he said while addressing the media.
"These 10 parameters are so tough that you don't get credit for the reforms introduced till you actually see their results on the ground," he said, adding that the World Bank's cut-off date for considering performance is June of every year.
Listing the areas which had boosted India's ranking, Jaitley said that on "protection of minority investors" India had come up to fourth place on account of reforms like bringing in the Companies Act and setting up of the National Company Law Tribunal (NCLT).
Jaitley also said that the biggest jump India got on the ease of doing business index eas on taxation reforms. “Biggest jump has been improving in taxation. Last year in 189 countries, we were 172.This year we have moved up 53 places,” he said.
Jaitley said that important work is in progress in the area of starting a business, adding that improve each criterion that is considered in the ease of doing business.
“It may take a few months for the policies to be effective at the ground level. As far as govt permissions go, you can set up a company in a day,” he said.
The Finance Minister noted that both on "ease of getting credit" and "electricity connections" India has come up to the 29th position this year.
"On resolving insolvency, we were 136... then we brought in the Bankruptcy Code and now we have climbed 33 places to 103rd position," he said.
While there has been substantial progress, India still lags in areas such as starting a business, enforcing contracts and dealing with construction permits, where there is a lot of work in progress that would help improve rankings further, he added.
On being questioned about the reason behind so many failed start-ups in the last three years, Jaitley said, “Start-ups are never 100% successful in anywhere in the world”.
Jaitley also said that the World Bank’s ease of doing business report will help improve the job sector.
However, he said that India still lag in building construction permits. "We are going to request states to expedite municipal permits," the finance minister said.
Also Read: Boost to Modi govt as India jumps 30 places to 100th spot in World Bank's Ease of Doing Business
He also hoped that it would be possible to make a bigger jump in rankings next year due to insolvency and arbitration reforms.
The Ease of Doing Business report is based on how easy it is for companies to do business as well takes in account certain regulations based on ten parameters including starting a business, getting electricity, dealing with construction permits and paying taxes among others.
The parameters that witnessed improvement in 2016-17 were India making it faster for start business, reduction in procedures and time required to obtain building permit, easier access to credit, protecting minority investors, ease of paying taxes, trading across borders, enforcing contracts and making resolving insolvency easier, the World Bank said.
Riding on government’s major economic reforms like demonetisation and Insolvency and Bankruptcy Code, India jumped to rank 100th in the 2018 edition of the World Bank's 'Ease of Doing Business' index.
Earlier in 2016, India was ranked among top 50 in three categories including minority investment, getting electricity and getting credit, but it ranked among the worst in the world in dealing with construction permits, resolving insolvency, registering property, trading across borders, paying taxes and enforcing contracts.