India on Tuesday notched a 30-point jump to break into the top 100 nations league in ease of doing business.
The ‘Doing Business 2018: Reforming to Create Jobs’ report of the World Bank also recognised India as one of the top 10 improvers in this year’s assessment having implemented reforms in eight out of 10 ‘Doing Business’ indicators.
“India is getting into a different league now. India is no longer in the 130-140 league. India is making a giant leap,” Finance Minister Arun Jaitley told reporters minutes after the World Bank released its report that showed India ranking 100 from the 130th position last year.
The achievement is flaunted by the Modi government as a big thumbs up to its economic reforms process.
The WB report is an assessment of 190 economies, covering 10 indicators which span the life-cycle of a business.
Jaitley credited the improved ranking to reforms such as amendments to the Companies Act, introduction of the Insolvency and Bankruptcy Code and drastic reforms in the Indian Arbitration laws to bring it on par with global standards.
However, the report stated that India still lagged in areas such as starting a business, enforcing contracts and dealing with construction permits.
Jaitley was quick to point out that the indirect tax reform – Goods and Services Tax, the amendments to the Companies Act that made registration of new businesses easier were not captured in the World Bank report which covers reforms carried out till June 1 every year.
The report ranks New Zealand, Singapore and Denmark as the easiest countries in the world to do business, while China is at 78 – 22 spots above India.
“There is huge scope to jump from 100. There are reasons to believe that we have the capacity to further improve our position. I believe it is doable,” the finance minister said, adding that the government will push reforms with “greater force”.
The report appreciated India’s progress in areas of Protecting Minority Investors, Getting Credit, and Getting Electricity.
The country’s corporate law and securities regulations have been recognised as highly advanced, placing India in 4th place in the global ranking on Protecting Minority Investors.
And the time to obtain an electricity connection in Delhi has dropped from 138 days four years ago to 45 days now, almost 20 days less than the 78 days average in OECD high-income economies.
India is placed 29th in the global ranking on the Getting Electricity indicator.