A new IFC and World Bank report finds that India has improved the regulatory environment for local entrepreneurs more than any other economy in South Asia since 2005.
In the past eight years India implemented a total of 17 institutional or regulatory reforms making it easier to do business.
The report assesses regulations affecting domestic firms in 185 economies and ranks the economies in 10 areas of business regulation, such as starting a business, trading across borders, and resolving insolvency. It also records regulatory reforms in those areas from June 2011 to June 2012.
The report finds that India is the first economy in the region to make dealing with construction permits easier for local firms since 2005.
In the past year India established strict time limits for preconstruction approvals, reducing the time needed to process permit applications.
“After establishing its first credit bureau in 2004, India focused mostly on simplifying and reducing the cost of regulatory processes in key areas such as starting a business, paying taxes, and trading across borders. These efforts notwithstanding, further progress is needed in coming years to release the vast potential of India’s private sector,” Augusto Lopez-Claros, Director, Global Indicators and Analysis, World Bank Group, said.