In the recent World Bank’s Ease of Doing Business Ranking 2019, India has achieved a remarkable overall ranking of 77th position out of 190 countries, thereby, successfully shooting up 23 places from its earlier 100th rank.
The Doing Business report exhaustively covers business regulations and reforms in various cities and regions within a country and provides an overall ranking to the countries based on certain parameters including starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency.
India has been ranked in the following manner in each of the given parameters out of 190 countries:
Starting a business- 137th rank
a) India has made setting up of business easier and smoother by putting together multiple application forms in a common application form.
b) Further the registration process under Goods and Services Tax (GST) has been made faster.
c) Also, the city of Mumbai has abolished the practice of site inspections for registering companies under the laws governing shops and establishments.
Dealing with construction permits- 52nd rank
i) The process of obtaining a construction permit has been made faster and cheaper.
ii) Introduction of decennial liability and insurance on construction contractors and design professionals to penalize them for any latent defect or collapse of building that they have constructed or designed, as the case may be. This is to improve the building quality control.
The cities of Delhi and Mumbai have introduced such reforms.
Getting electricity- 24th rank
In Delhi, the time involved in getting electricity connection and the charges for low voltage connections has been reduced.
Registering property- 166th rank
Getting credit- 22nd rank
India has strengthened the insolvency law and provided security creditors priority over claims of other stakeholders during insolvency proceedings.
Protecting minority investors- 7th rank
Paying taxes- 121st rank
(i) With the introduction of GST, various indirect taxes have been subsumed under a uniform system of taxation in the country.
(ii) Further, the corporate tax rate and the employees’ provident funds scheme rate have been reduced.
Trading across borders- 80th rank
The time and cost involved in imports and exports has been substantially made faster and less costly with electronic sealing of containers, better port infrastructure and electronic submission of supporting documents with digital signatures.
Enforcing contracts- 163rd rank
Resolving insolvency- 108th rank
The business reforms and initiatives of the Indian Government in bringing ease of doing business in India have seen a drastic improvement.
Reportedly, Mr. Jim Yong Kim, the President of the World Bank has described the India’s jump in ease of doing business ranking as a historic and unprecedented achievement which has been attained as a result of the unwavering commitment and leadership of Shri Narendra Modi, the Prime Minister of India.
The further initiatives of Indian Government on making doing business in India easier are likely to improve India’s ranking in the World Bank’s Ease of Doing Business Ranking in the coming years.
Senior Legal Associate
The Indian Lawyer