India has become a better place for entrepreneurs to get a loan, but at the same time the overall process to start a business here has become tougher in the last one year, a World Bank study has found.

According to the 'Doing Business 2008' report published by the World Bank and its private sector lending arm IFC, India has moved up 12 positions in terms of ease of business, but is still ranked in the bottom half at 120th position among 178 economies across the world.

The overall ranking is based on ten different indicators of business regulation that track the time and cost to meet government requirements for business start-up, operation, trade, taxation and closure.

India has improved significantly when it comes to getting credit, trading across the world, but its position has deteriorated in areas like starting a business, employing workers, registering property, paying taxes and closing taxes.

The country has been ranked 111th for starting business, down from 93rd a year ago. For dealing with licences, it has dropped one rank to 134th, while for employing workers it has been placed two ranks down at 85th position.

However, for getting credit, it has climbed 26 positions to 36th as compared to 62nd last year.

On the indicator of paying taxes, the country has lost seven positions to 165th, up from 158th during last year. For registering a property, India has dropped four positions standing at 112 against 108 last year. For closing a business, it is down two places at 137th rank.

In starting a business, the entrepreneurs have to follow 13 official procedures in a span of 33 days and in dealing with the licences it requires six procedures and 62 days.

Noting that Indian government was taking steps to speed up the reforms, the report said the time to obtain a business licence in India ranges from 159 days in Bhubaneshwar to 522 in Ranchi, while the time to register property ranges from 35 days in Hyderabad to 155 in Calcutta.

The report said other economies in South Asia region were also taking up reforms to improve the business environment. Smaller countries like Bhutan has also cut the number of procedures required for starting a business.

Besides, Sri Lanka has eliminated burdensome approvals, introduced a flat registration fee cutting the procedures for start-up from eight to five and the time from 50 to 39 days.

On taxes, the report said, a medium-size firm has to make 60 types of payment a year in India. The number of hours spent preparing, filing, and paying the tax account to 271 hours and the percentage of profits they must pay in taxes is 19.6 per cent.

For trading across the boundaries, the cost to import each container is 910 dollars, while that to export is $820 a container.

There is, on the other hand, a marginal difference of one document to be submitted during the export and import of goods across borders. The number of documents submitted for exports are eight as compared to nine documents filed for the purpose of imports.

Among other countries in South Asia, Pakistan has made the working hours more flexible for the retail workers.

Afghanistan has cut the number of procedures for transferring property and has also begun to digitise the title deeds. Bhutan has implemented its first labour law prohibiting forced labour, discrimination, sexual harassment and child labour.