Yesterday the whole country went Gaga over how India has jumped 12 positions in a period of just one year in the World Bank's 'Doing Business 2016' report. Acquiring the 130th position among 189 economies, the country's this year ranking was a major improvement from its 142nd spot in the year 2014, which was later revised to 134 this year after data corrections.
Later, It dramatically turned out that India never moved 12 spots over last year.
The World Bank's website clarified that India only jumped 4 places, from 134 in 2015 to 130 in 2016. A dramatic change in methodology has meant that the ranking for 2015-a dismal 142-- was updated to reflect a new measurement philosophy. Based on data available as of June 2014 that changed the 142 rank to 130. This further implies that the substantial 8-point jump last year was updated to reflect the ease of doing business of policies implemented by the government in place till June 2014: 11 months of the UPA and 1 month of the current NDA government.
The overall rankings have been calculated on the basis of ten factors, which are-- registering property (138), getting credit (42), dealing with construction permits (183), getting electricity (70), protecting minority investors (8), paying taxes (157), enforcing contracts (178), trading across borders (133), resolving insolvency (136) and starting a business (155th rank).
While everything seems hunky dory from outside, India still has a long way to go when compared to other world powers. Even though India's ranking has improved to 155 from 164 in the year 2014 in terms of starting a business. It still takes 29 days and over 12 procedures to begin a venture in the country.
[cp_quote style="quote_normal_dark"]As per data collected for the report, 'Starting a business in India requires 12.90 procedures, takes 29 days, costs 13.50 per cent of income per capita and requires paid-in minimum capital of 0 per cent of income per capita.[/cp_quote]
Getting construction permits is still a fight for Indian entrepreneurs as the country's position in terms of getting construction permits marginally improved to 183 from 2014's ranking of 184. In terms of getting electricity, the ranking saw a jump of almost 30 positions to 70 from 99 in 2014.
REcent policies implemented by the government, the World Bank said, of forcing entrepreneurs to deposit Rs 100,000 to incorporate a new company have been done away with. That move brings India in line with the 105 countries out of 189 in the Doing Business ranking that have no minimum paid-in capital requirement.
Elaborating on the front of getting electricity, the report said, the utility in Delhi has made the whole process of getting a power connection much faster and simpler as it has eliminated the internal wiring inspection by the Electrical Inspectorate. Talking about Mumbai, it said, "The utility in Mumbai reduced the procedures and time required to connect to electricity by improving internal work processes and coordination."
Everything wasn't an upward movement for India. The country's rank tanked on two fronts - paying taxes and getting credit. India's position declined to 157 from 156 in terms of paying taxes and on the getting credit front, it declined to 42 from 36 last year.
In the light of the recent government's efforts to boost trade and business in India, how do we fare in the list next year, will be a thing to see.
Advertisements