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India ranks 130 in ease of doing biz list; jumps 12 spots

Last updated on: October 28, 2015 11:24 IST

What is significant about India is that it is in the middle of what appears to be a very, very ambitious process of reforms affecting a broad range of areas captured by the Doing Business indicators.

Image: India has improved its ease of doing business score among global cities, says a report. Photograph: PTI

India now ranks 130 out of 189 countries in the ease of doing business, moving up 12 places from last year, according to a World Bank report.

"A forward movement of 12 spots in the ease of doing business by an economy of the size of India is a 'remarkable achievement," World Bank's Chief Economist and Senior Vice President Kaushik Basu said.

Image: Global firms prefer setting up businesses in Singapore due to its favourable policies, says a survey. Photograph: Reuters

"For any big economy, a rank improvement of 12 is a remarkable achievement. Going from 142 in the world to 130, as India has done, is very good sign.

Image: New Zealand offers sops for MNCs to set up shops in the country and hence it is one of the best destinations to set up any business. Photograph: Reuters

It gives a good signal about the way things are moving in India," Basu told PTI in an interview as World Bank released its annual report 'Doing Business 2016' which is topped by Singapore.

Image: Hong Kong has business-friendly policies that boosts investors' confidence. Photograph: Courtesy, Sham Hardy/Wikimedia Creative Commons

New Zealand is next in the list, Denmark, South Korea, Hong Kong, Britain and the US.

Image: Boats are seen anchored at the 17th century Nyhavn district, home to many shops and restaurants in Copenhagen. Photograph: Bob Strong/Reuters

China is ranked 84 and Pakistan is at 138th place.

Pakistan in fact has slipped 10 spots from 128 last year while China has moved six spots in a year from 90 since the last report.

Image: Image: A view of Times Square in New York City. Photographs: Chip East/Reuters

The World Bank said India, which has a global ranking of 130, implemented two reforms during the past year.

For example, in starting a business, India eliminated the requirements for a paid-in minimum capital and a certificate to commence business operations, significantly streamlining the process for starting a business.

Image: China is ranked 84 in the ease of doing business list. Photograph: Reuters

 "What is significant about India is that they are in the middle of what appears to be a very, very ambitious process of reforms affecting a broad range of areas captured by the Doing Business indicators," Lopez Claros, Director of the Global Indicators Group World Bank, said during a conference call.

"My expectation, therefore, is that if this process continues, if it is sustained, and the authorities show the degree of determination which has been in evidence in the last year, then we could see substantial improvements in coming year," he said.

Image: Pakistan ranks 138 in the ease of doing business list. Photograph: Reuters

Observing that the potential to see kind of a rapid economic growth in India is very high, Claros said it has very favourable demographics, and to the extent that some of the bottlenecks that the Doing Business data identified in India are removed, the potential benefits could be quite large.

"And India being India, that is a large economy. This could have also international repercussions in terms of the impact on the global economy," he said. 

Lalit K Jha
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