India moves up in the ease of doing business index, click here to know more about EDB.
The challenges before India in terms of business doing remains formidable
What are the commitments of India in business doing?
Finance ministry has reiterated to achieve the commitment to pursue more business reforms.
India has set its target of entering the top 50 in the World Bank’s index.
Specific steps to cut red tape had been taken, with the Bank recognising India as one of the top 10 countries that have made improvement over the past year.
The introduction of the new insolvency and bankruptcy resolution process in line with sooner debt recovery.
Simplifications in the payment of statutory dues such as provident fund contributions and corporate taxes and easier access to credit spurred India’s latest ranking.
It is also notable that India is now the fourth best placed in the world for minority investors, well ahead of several developed nations.
By these commitments India is shifting from the ease of doing corruption to the ease of doing business.
What are the challenges before India?
There are various areas where the Index still rates India poorly among 190 countries.
The quality and pace of course correction on the GST in the coming months is uncertain and will determine if India can hold its 100th position or move up further.
The implementation efficiency of Insolvency and bankruptcy code is yet to be proved.
The enforcement of contracts in India now takes longer than it did 15 years ago.
The procedures to start a business or secure a construction permit remain cumbersome.
As the country’s largest urban agglomerations, Mumbai and Delhi cannot host the kind of large factories that India needs to generate adequate employment.
The procedural reforms so far taken as not been reached the entire hinterland.
No major legislative changes had been bought in the areas of Land acquisition
Foreign investors often take their signal from the mood of domestic businesses the GST challenges faced by domestic traders are yet to be addressed.
