Ease of Business Ranking of any country is calculated by the World Bank. It is the cumulative figure that indicates the ease of running a business in a particular country, based on certain parameters. A high ranking country is supposed to be liberal in its approach to aid the sustenance of a business. The benefits of the higher ranking directly affect the socio-economic condition of the country through its domestic and international businesses. And with budding new businesses, new technology becomes easily accessible to the people.
10 indicators are assessed to list the countries according to their ease of business feasibility. They are:
- Starting a business
- Dealing with construction permits
- Getting electricity
- Registering property
- Getting credit
- Protecting minority investors
- Paying taxes
- Trading across borders
- Enforcing contracts and
- Resolving insolvency
Last year, India performed remarkably well and leaped 30 spots to become one of the top 100 countries on the ease of doing business ranking list by World Bank. It was recorded as the highest jump ever by any country.
- Business Today quoted Finance Minister, Mr. Arun Jailey in the report published on Nov 1, 2017. “Historically India has been in the rage of 130-140. In last two years, we made it to 131, 130 places. This year we have jumped 30 points to 100. This is the highest jump any country has made in World Bank’s ease of doing business ranking.”
The government took several advanced steps to speed up the reformative measure to improve India’s ranking. After many years of liberalization, Indian government actually made the business environment responsive. The three major areas where India performed extraordinarily were: getting credit, electricity, and in protecting minority investors.
- Obtaining a commercial electricity connection in Delhi was made much easier and cheaper.
- With the advent of digital India, paying employee state insurance taxes in Delhi and Mumbai became much easier via an electronic system
- Special division for resolving contract issues were opened in Delhi and Mumbai.
- India launched launching Customs Electronic Commerce Interchange Gateway portal for the smoothening the import and export process.
- India’s advanced corporate law and regulations aided the minority investors and secured their investments.
While the above statements show India’s endeavor in opening various avenues for global business, will still need reforms to compete with the other nations. For entrepreneurs, it is still cumbersome to get the paperwork done in time. The procedures are lengthy and complicated. Permits for construction are still hard to get and we substantially lack behind in enforcing contracts. Eventually, the country holding a respectable position on the World Bank’s ease of doing business ranking list is a proof that we are advancing towards a better future and the government must be doing many things right on the business front, that led the country here.