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India Jumps 30 Places to 100th Rank
Nov 2, 2017

India has jumped a massive 30 places to 100 in the World Bank's 'Ease of Doing Business' rankings this year, thank to these initiatives:

  • digitization of the tax system;
  • dissolution of the insolvency problem;
  • set up of processes enabling access to credit; and
  • regulatory reforms for the protection of minority investors.

With the increase in rank, India has become the first country to register such a major growth in terms of ease of doing business. interestingly, among the BRICS (Brazil, Russia, India, China, South Africa) countries in the ranking, India settled at the bottom, and has risen above the tide to overshadow Brazil (ranked 125) on the list.

The World Bank's 'Ease of Doing Business' index ranks the nation based on the 10 indicators. These indicators are:

  • Starting a business,
  • Dealing with construction permits,
  • Getting electricity,
  • Registering property,
  • Getting credit,
  • Protecting minority investors,
  • Paying of taxes,
  • Trading across borders,
  • Enforcing contracts and
  • Resolving insolvency

Each one of these indicators carry equal weightage.

It appears that the Indian government's efforts are beginning to register. It is important to note that, this ranking has an impact on the sentiments of global investors and their decision making. With the government's focus on improving the ease of doing business, which was one of Modi's promises, citizens can expect change.

The introduction of the Goods and Services Tax (GST), which was not taken into account this year, is expected to raise India's position next year.

That said, India still lags in areas such as starting a business (ranked 156), enforcing contracts (ranked 164) and dealing with construction permits (ranked 181). Tackling these challenging reforms will be key to India sustaining the momentum towards a higher ranking.

Data Source: World Bank

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