India surges 23 places in ease of doing business rankings

Andrew Cummings
November 1, 2018

Secretary of the Department of Industrial Policy and Promotion (DIPP) said that India has been recognised among top 10 improvers for the 2nd consecutive year.

The Doing Business report is published by World Bank, which measures the performance in ease of doing business in 190 countries. Since then, Israel has slipped in the rankings, reaching 54th place past year. Ghana's ease of doing business score formerly called distance to the frontier has increased by 2.06 to 59.22.

The biggest improvements have been in the indicators related "construction permits" and "trading across borders", the ministry added. Mr Jaitley said, reaching to 50 from the 142nd position is an unprecedented growth in World Bank business Ratings. India's centrally planned economy in the years after independence was renowned for the complex system of permits required to run a business in the country.

While talking to the media, Fareena Mazhar, Executive Director General BOI, explained that in addition to introduction of reforms, other positive data corrections also contributed to the unprecedented improvement in ranking of Pakistan. For example, getting an electricity connection now takes 185 days as compared to 215, previously.

Also, "India made paying taxes easier by replacing many indirect taxes with a single indirect tax, the GST, for the entire country".

The reforms of the past year covered the doing business areas of starting a business, registering property and resolving insolvency. Today, we are at Rank 77. After all ease of doing business is all about minimum governance and your investment process is guided by it. We need to crack the code and try and improve on the criterion in which we lack, the FM said. "India also made paying taxes less costly by reducing the corporate income tax rate and the employees' provident funds scheme rate paid by the employer", the World Bank said. His objective was to make India easy and simple and enhance the ease of living of citizens. Since the launch of DB report in 2002, it is the first time that Pakistan has jumped 11 points in one year. Further, India reduced the time and cost of export and import through various initiatives, including the implementation of electronic sealing of containers, the upgrading of port infrastructure and allowing electronic submission of supporting documents with digital signatures, it said.

Kenya strengthened access to credit by introducing a new law on secured transactions that created a unified secured transactions legal framework. However, it is ahead of oil rich country Oman, which holds 78th rank. The report notes that India has supported its ambitious reform agenda by providing regular training to both customs officials and private sector agents, as well as by establishing Customs Clearance Facilitation Committees which bring together actors involved in global trade at regular meetings. This is also due to a notable reduction in time and cost to import and export, in terms of documentary and border compliance.

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