Mumbai: With the World Bank’s ‘ease of doing business’ rankings ready to be revealed on Tuesday, India may expect quite a leap in its position this year, having undertaken a series of reforms.
Last year, India ranked at 130 out of the 190 countries on the index, just one rank up from the previous year's 131.
According to a report by Economic Times, the government is expecting an improvement in the ranking on three parameters—‘starting a business’, ‘dealing with construction permits’ and ‘resolving insolvency’.
Obtaining a construction permit
India ranked a lowly 185 among 190 nations on this parameter last year. Until 2016, it reportedly took 164 days in Mumbai and 213 in Delhi to get a construction permit. The whole procedure was also not digital.
Government officials in July said that the process for granting permits had been eased and now it takes only 60 days to get a construction permit in Delhi and Mumbai.
Starting a business
India had ranked 155 among 190 countries last year on this parameter. In June, the government informed the World Bank that processes involved in starting a business had been reduced from 14 to five. Obtaining DIN, PAN and TAN have been merged, employee provident fund has been moved online, bank accounts are not required mandatorily for any forms – this way many processes have been eased.
Insolvency resolution process
The introduction of the Insolvency and Bankruptcy Code, 2016 had not been taken into consideration last year as it was implemented post the last date for compilation of the report. India was ranked 136th on this parameter last year. This law is expected to transform the insolvency resolution process.
However, the Goods and Services Tax, that was introduced this year will not be taken into account for the rankings this year as it was introduced after the compilation of reports. The new tax reform, which subsumes a string of levies is expected to increase the ease of business in the country.
