India jumped 23 ranks in the World Bank’s Ease of Doing
Business Ranking this year to be ranked at 77. Upward move of 53 ranks in the
last two years is the highest improvement in 2 years by any large country since
2011. India now ranks number one in Ease of Doing Business Report among South
Asian countries compared to 6th in 2014.
So far, India has improved its rank in 6 out of 10
indicators and has moved closer to international best practices (Distance to
Frontier score) on 7 out of the 10 indicators. The most dramatic improvements
have been registered in the indicators related to construction permits and
trading across borders. India's rank improved from 181 in 2017 to 52 in 2018,
in grant of construction permits, an improvement of 129 ranks in a single year.
When comes to trading across borders, India's rank has improved by 66
positions, moving from 146 in 2017 to 80 in 2018.
The Department of Industrial Policy and Promotion ,Ministry
of Commerce and Industry, in collaboration with the World Bank conducts an
annual reform exercise for all States and Union Territories under the Business
Reform Action Plan (BRAP) to improve delivery of various Central Government
regulatory functions and services in an efficient, effective and transparent
manner. States and UTs have conducted reforms to ease their regulations and
systems in areas like labour, environmental clearances, construction permits,
contract enforcement, registering property and inspections. The States have
also enacted Public Service Delivery Guarantee Acts to enforce the timelines on
registrations and approvals.
Ease of Doing Business ranking improved, and it has been
possible because of the transformative measures taken by the Government of India
which includes legislative and regulatory reforms. To support start-ups and
lower tax rates for MSMEs quicker environmental clearances from 600 days to 140
days has been implemented, abolition of inter-state check post after
implementation of GST has been done, enhanced input tax credit and electronic
GST network has been put in place and the creation of commercial courts to fast
track enforcement of contracts and faster security clearances has lent support
to the start-ups in the country.
Among BRICS countries, India has improved its rank from 5th
in 2010 to 3rd in 2018. Various measures were undertaken to ensure this
improved ranking is issuance of construction permits where India’s rank is 52,
in getting electricity connection India’s rank is 24 and in Trading Across
Borders India now ranks at 84. In paying taxes India’s ranking is 121 and in
resolving insolvency India’s ranking stands at 108.
For ease of doing business for start-ups Twenty-One
regulatory changes have been made. For optimization of resource utilisation and
enhance the efficiency of the manufacturing sector, DIPP launched the
Industrial Information System, a GIS-enabled database of industrial areas and
clusters across the country in May 2017. This portal serves as a one-stop
solution to the free and easy accessibility of all industrial information
including availability of raw material – agriculture, horticulture, minerals,
natural resources, distance from key logistic nodes, layers of terrain and
urban infrastructure.
IPRS is proposed to be translated into an annual exercise
covering all the parks across India. The coverage would be widened and updated
to bring in deeper qualitative assessment feedback, bring in technological
intervention and develop it as a tool that helps effectively for demand driven
and need based interventions both by policy makers and investors.
Image Courtesy: Google
Latin Manharlal Group
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