India leaps to 77th rank on World Bank’s ‘Ease of Doing Business’ Index

Pic Credits: FirstPost

News Desk

New Delhi, Nov 1 (ANI): India has jumped 23 places to be ranked 77 out of 190 countries in the Ease of doing a business index, according to the World Bank. The jump marks a significant shift in the constant improvisation of the ranking for India, with its rank rising by 53 positions in the last two years and 65 positions in the last four years.

The doing business assessment provides objective measures of business regulations and their enforcement across 190 economies on ten parameters affecting a business through its life cycle. The report ranks countries based on the Distance to Frontier(DTF), a score that shows the gap of an economy to the global best practice. India’s DTF score has improved from 60.76 to 67.23.

India has improved its rank in six out of ten indicators and has moved closer to international best practices on seven out of the ten indicators. However, India has taken a breathtaking leap in two sectors namely construction permits and trading across borders. In the grant of construction permits, India’s rank improved from 181 in 2017 to 52 in 2018, an improvement of 129 ranks in a single year. In ‘Trading across Borders’, India’s rank improved by 66 positions moving from 146 in 2017 to 80 in 2018.

Apart from these parameters, India has also improved in the sphere of getting an electricity connection. The time to obtain a connection in Delhi has dropped from 138 days four years ago to 45 days now, which is much below the 78-day average in high-income economies. India ranks 29th among 190 countries with regard to this parameter. In the sphere of starting a business, the scenario has drastically improved by merging the applications for the Permanent Account Number (PAN) and Tax Account Number (TAN) through an online system.

India has moved up 33 places from the previous year with regard to resolving insolvency in this year’s Doing Business Index. This drastic jump can be credited to the enactment of the landmark Insolvency and Bankruptcy Code that was approved by Parliament in May 2016, with certain provisions imposed in August 2016

Pic Credits: Hindustan 360

to bring India’s legal and institutional machinery in line with the global standards for dealing with the issue of debt default. With the enactment of the IDC, there has been renewed interest in entrepreneurship and a positive shift in the access to credit. All the laws related to reorganization and insolvency Resolution of various entities, such as companies and limited liability entities, unlimited liability partnerships and individuals have been consolidated to ensure a clear, coherent and speedy process.

Ramesh Abhishek, Secretary, Department of Industrial Policy and Promotion said, “India has been recognized among the top ten improvers for the second consecutive year and is ranked first among the South Asian countries as opposed to being ranked sixth in 2014.”

After the new ranking was announced, India’s Prime Minister Narendra Modi said this “historic jump is a testament to the multi-sectoral reform push of Team India”. He added, “India welcomes the world to explore economic opportunities our nation has to offer. Guided by the mantra of Reform, Perform and Transform, we are determined to further improve our rankings and scale greater economic growth.”

New Zealand topped the list of 190 countries in ease of doing business, followed by Singapore, Denmark, and Hong Kong. The United States is placed eight and China have been ranked 46th whereas rivals Pakistan are placed at 136.