Anda di halaman 1dari 2

The Big Picture Ease of Doing Business: What has changed?

insightsonindia.com/2015/11/02/the-big-picture-ease-of-doing-business-what-has-changed/

INSIGHTS

3/11/2015

The Big Picture Ease of Doing Business: What has changed?


Archives
Summary:
In the recently released Ease of Doing business report, India has climbed 12 spots to 130 among 189 countries. The
ranking was boosted by three of the 10 parameters, namely ease of starting a business, ease of getting electricity,
and dealing with construction permits. Union finance minister has said that there is optimism that India will get into
the top 100 next year, and it is possible with the slew of measures the government has taken since June. Since the
new government took over, there have been a lot of reforms in taxation, setting up consumer courts, fixing
anomalies in the Companies Act, etc.
In some parameters the performance of India is poor. These are: starting a business, dealing with construction
permits, registering property, getting credit, protecting minority investors, paying taxes, trading across borders,
enforcing contracts and resolving insolvency. With Indias ranking being 183, construction permits remain another
area that needs to be addressed. Procedural reforms have been neglected for too long.
Compared to china, India has still long way to go. Among South Asian economies, India made the biggest
improvement in business regulation. India ranks in the top 10 in Protecting Minority Investors. However, it is wellknown that the real hurdle in India for doing business is the maze of red tape, which is seen to be a legacy of the
license-permit raj. Domestic entrepreneurs as much as foreign investors need relief from the vice-like grip of
bureaucrats and bureaucratic structures.
The main problem with this World Bank released survey is that it considered only Mumbai and Delhi. Rajasthan,
Gujarat, Punjab, etc., which have undertaken a lot of reforms towards making it easier to do business, are not in its
purview. Another issue that does not figure in the report is the need for an ecosystem that spurs innovation and
research. Long-term investors would prefer a place where the workforce is skilled and healthy and where the
government delivers on civic amenities, social and physical infrastructure, and law and order.
For an investor-friendly business environment, whats required is greater transparency, including in political and
electoral funding, which will replace systemic corruption with easier-to-tackle opportunistic corruption. It is also
important to focus on challenges that entrepreneurs face at home because long-term economic growth can only take
place if driven by domestic start-ups.

Copyright (C) INSIGHTS ACTIVE LEARNING

1/2

2/2

Anda mungkin juga menyukai