LAKSH Career Academy

LAKSH Career Academy
Author: Hiren Dave

Wednesday, 28 October 2015

28 OCTOBER 2015: Improvement in Ease of Doing Business gives credibility to govt's economic commitments

Ø  India improved its position from last year’s 134 to 130 in the World Bank Doing Business 2016 ranking. Last year’s report ranked India at 140, but this year’s report features the recalculated 2015 rankings, in which India comes at 134, computed according to a new methodology. The WB Doing Business reports, started in 2002, review business regulations and their enforcement across 189 countries. My expectation…is that if this process continues, if it is sustained, and the authorities show the degree of determination which has been in evidence in the last year, then we could see substantial improvements in the coming year. Among South Asian economies, India made the biggest improvement in business regulation, increasing its distance to frontier score by 2 points and moving up in the ease of doing business ranking from 134 to 130. India ranks in the top 10 in Protecting Minority Investors (8), as its law grants minority shareholders strong protection from conflicts of interest and provides extensive rights to shareholders in major corporate governance. The improvement in two indicators, ‘starting a business’ and ‘getting electricity,’ pushed India up the ladder, according to the report. “Now, companies can get connected to the grid and get on with their business, 14 days sooner than before,” the report said, based on the recently simplified procedures in Mumbai and Delhi. The number of days it takes to start a new business has gone up marginally from last year, from 28.4 to 29 this year, but the report has taken note of other measures in the last year that made starting a business easier. The report commended the legislative changes that eliminated the minimum capital requirement and the requirement to obtain a certificate to start business operations.

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