India has moved up 30 spots in World Bank (WB’s) ease of business ranking. The positive leap pushed India up to the 100th rank on the 190 country list, still 50 points behind the current government’s target of the 50th spot.
Importantly, Improving India’s ranking in the report has been a key component of India’s PM Narendra Modi’s economic agenda. The dramatic improvement of 30 spots is being credited to the recent reforms in taxation, licensing, investor protection, ethical reformative actions, digital drive, involvement of states in faster clearance of projects and bankruptcy resolution.
“Faster permits for construction, combining the application for the Permanent Account Number (PAN) and the Tax Account Number (TAN) into a single submission, reduction in the time needed to complete the applications for Employee’s Provident Fund Organization (EPFO) and the Employee’s State Insurance Corporation (ESIC), reduction in export and import border compliance costs and improved access to credit are among the reforms noted by the report.…the establishment of debt recovery tribunals reduced non-performing loans by 28% and lowered interest rates on larger loans, suggesting that faster processing of debt recovery cases cut the cost of credit,” the report said.
According to India’s Finance Minister Arun Jaitley, "Historically India has been in the rage of 130-140. In last two years, we made it to 131, 130 places. This year we have jumped 30 points to 100. This is the highest jump any country has made in World Bank's ease of doing business ranking”.
As a consequence of the historic leap, Nifty crossed the 10,400-level for the first time by gaining 67.85 points, or 0.65 percent, to trade at a fresh life-time high of 10,403.15, surpassing its previous intra-day high of 10,384.50 touched on October 30. The news triggered a series of positive sentiments about sustaining the momentum by economists, bankers and ministers.
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 taxes, Trading across borders, Enforcing contracts and Resolving insolvency. Each one of these indicators carries equal weightage.