India jumps to 77th rank in the ease of doing business index


What is Important?
UPSC perspective:
Prelims:Highlights
Mains:Highlights,Reforms taken by India & its Concerns



Why in News?

The World Bank released its latest Doing Business Report (DBR, 2019) in New Delhi.India has recorded a jump of 23 positions against its rank of 100 in 2017.

Highlights:

*India climbed another 23 points in the World Bank’s ease of doing business index to 77th place in the assessment of business regulation across 190 economies.
*The top 10 economies in the index are New Zealand, Singapore and Denmark, which retain their first, second and third spots, respectively, for a second consecutive year.
*It was followed by Hong Kong SAR, Republic of Korea, Georgia, Norway, United States, United Kingdom and FYR Macedonia.
*India jumps 23 spots to 77th rank in World Bank's latest report, while it was ranked 100th last year, moving up from 131th position that it recorded in 2016.
*India now becomes the top-ranked country in South Asia for the first time and third among the BRICS.
*India is now the best-ranked country in South Asia and has almost caught up with other competitors such as Indonesia (73) and Vietnam (69).
*The DBR ranks countries on the basis of Distance to Frontier (DTF), a score that shows the gap of an economy to the global best practice.
*This year, India’s DTF score improved to 67.23 from 60.76 in the previous year.

India’s reform:

*India’s strong reform agenda to improve the business climate for small and medium enterprises is bearing fruit.
*It is also reflected in the government’s strong commitment to broaden the business reforms agenda at the state and now even at the district level.
*Going forward, a continuation of this effort will help India maintain its goal of strong and sustained economic growth and we look forward to recording these successes in the years ahead.
*The six reforms recognised in this year’s report are starting a business, getting electricity, dealing with construction permits, getting credit, paying taxes and trading across borders.
*In dealing with construction permits, India has implemented an online single window system, introduced deemed approvals and reduced the cost for obtaining these permits.
*In the electricity sector, the time taken for obtaining a new connection has reduced from 105 to 55 days.

Concerns:

*Since the World Bank sets May 1 as the deadline for measurement, there are several initiatives taken by the government that will only reflect in next year's rankings including the effects of the Insolvency and Bankruptcy Code and the full effect of the Goods and Services Tax.
*Despite the sharp improvement India has made in several of the categories in the Index, there were others such as registering a property, starting a business, taxation, insolvency, and enforcing a contract where a lot of work still needs to be done.
**Moreover, it must be underscored again that these rankings are based on improvement in two of the main cities, Delhi and Mumbai, both of which benefit from being the political and financial capitals of the country.
*The reality in other prominent cities and smaller towns is most likely worse.











India jumps to 77th rank in the ease of doing business index India jumps to 77th rank in the ease of doing business index Reviewed by The Hindu Current Affairs on November 01, 2018 Rating: 5

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