The ease of doing business which was released on Thursday stated that “India is not a place for starting a business”. While India has jumped 14 places to take the 63rd position on the World Bank’s ease of doing business ranking, the country moved at a snail’s pace on starting a business front.
The change in starting a business front in India was registered by the World Bank. Simply put, India is not a place for starting a business.
India on Thursday figured among the top 10 performers on the list for the third time in a row mainly due to the successful implementation of the insolvency and bankruptcy code. With the new ease of doing business rankings, it looks like the government’s push for structural changes in the country is finally paying some dividends.
Jumping 14 points, India improved its ranking in the World Bank’s ease of doing business report, 2020 and landed at 63rd place this time. This is significant as in 2019, the country stood at 77th place rank.
Between 2014 and 2019, India improved its rank by 79 positions. In 2014, India stood at a dismal 142nd place. India improved its rank in seven out of 10 indicators and according to the World Bank, the country is now moving closer to international best practices.
The country has made significant improvements in ‘Resolving Insolvency’ with an astonishing jump of 56 positions made on this front in the last one year, second-highest jump was seen in construction permits, a jump of 25 positions.
Another area which saw significant improvement was the trading across borders indicator which saw a jump of 12 places. From 80th place in 2018, India now stood at 68th place in 2019.
Finance Minister, Nirmala Sitharaman acknowledged the fact that India moved at a sluggish pace on starting business front in the country and said, “The government is aware of what news is to be done. Even in this recent ranking, we have lagged behind and we will improve on this front as soon as possible and constant measures are being taken to improve the ease of doing business in the country.”
India is also moving a sluggish pace when it comes to providing electricity to the citizens. From 24th place in 2018, the country has moved only two positions and stood at 22nd place in 2019.
The finance minister took cognisance of this as well and said that the government is on a mission to provide electricity to every citizen.