World Bank’s Doing Business 2020 report, which was published on 24th October 2019, showed India has improved its rankings, going up from 77 last year to 63 this year. The World Bank has named India as ‘one of the economies with the most notable improvement’. India has been adjudged the ninth-best performing nation in reforming the business environment.
Key Indicators where India improved its ranking this year
Resolving Insolvency:
One of the main reasons for improvement in India’s ranking is by the implementation of Insolvency and bankruptcy code. Where it jumped 56 places to take the 52nd spot. “The recovery rate in case of insolvency has improved to 71.6 per cent from 26.5 per cent last year. The time taken for resolving insolvency has also come down significantly from 4.3 years to 1.6 years.
Dealing with Construction Permits:
India streamlined the process of obtaining building permit and made it faster and less expensive to obtain construction permit . It is now the 27th easiest place to construct a business unit.
Trading across borders
The country’s third best improvement was in Trading across borders, where it ranks 68th globally . Trading across boarder is now made easier by enabling post clearance audit, integrating trade stakeholders in single electronic platform and enhancing the electronic submission of document.
Starting a Business:
India made starting a business easier by abolishing filing fees for the SPICe, company incorporation form and enabling electronic memorandum of association and article of association.
Areas demanding attention
The report also highlights the key reforms that need attention from the Center.
The World Bank has observed that the country needs to do more in areas such as enforcing contracts and registering property where it’s a laggard at 163rd and 154th globally.
Average time required to enforce a contract via court continued at the previous year’s level of 1,445 days, as against 590 days for OECD high-income countries.
India’s position on ease of ‘paying taxes’ also remains low at 115th.
Click here to read the report
