STOCK MARKET BSE NSE

Eyebrows raised over India's ease of doing business ranking by World Bank

In the recent World Bank’s ease of doing business 2020 report, the country jumped to 63rd position, among 190 nations.

Published: 29th August 2020 12:09 PM  |   Last Updated: 29th August 2020 12:09 PM   |  A+A-

Rs 2000, cash,money

Private banks sanctioned loans to the tune of Rs 74,715.02 crore, out of which Rs 45,762.36 crore has already been disbursed. (Photo | PTI)

Express News Service

NEW DELHI: With the World Bank all set to review its flagship 'Doing Business' report of last five years, India’s monumental gain in the business climate index during the period is being questioned. This year, World Bank won't be publishing its Doing Business report as it conducts its assessment.

India has improved its ranking by 79 positions in five years (2014-19). In the recent World Bank’s ease of doing business 2020 report, the country jumped to 63rd position, among 190 nations.

India also figured among the top 10 performers on the list for the third time in a row. "India’s ranking witnessed improvement even as the Central Government took drastic steps such demonetization and ghastly implementation of Goods of Service Tax. These two steps alone uprooted lakhs of small businesses," said a senior economist at a brokerage firm requesting anonymity.

Consultancy firm McKinsey in a report released on Wednesday said that even as India rose from 130th overall in 2016 to 63rd in 2020 in the business index, Indian companies still face obstacles ranging from delayed payments for public procurement to tedious and slow processes for obtaining permits.

"Construction permits, for example, take 106 days, almost double the time in peer emerging markets. These and other issues could be resolved if the government adopted global best practices in relevant areas," the report said.

Taking to Twitter, former union minister and Congress leader Jairam Ramesh slammed the Modi government for chasing "bogus rankings" over the years while MSMEs continued to languish. However, the government is confident that there won’t be much change in India’s position as numerous reforms taken during the last six years has made India a favourite destination for doing business.

NITI Aayog CEO Amitabh Kant said that India’s business climate has been continuously improving, not for the sake of World Bank’s Index but to make India easy and simple. "All of us in the government will continue to work tirelessly to ensure efficient and effective norms... and make India one of the easiest countries to invest and create wealth," Kant was quoted as saying.

NITTY-GRITTY OF WORLD BANK’S RANKING

  • The rankings are based on a country’s performance on 10 indicators such as starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, etc.

  •  In 2014, India was ranked 142nd. It jumped to the 63rd position among 190 countries in May 2019.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp