India has set itself the ambitious task of climbing into the top 30 of the World Bank's ease of doing business rankings in three years and is confident of breaking into the top 100 in this year's list, which is to be released soon.
The Department of Industrial Policy & Promotion has sought help from the World Bank to achieve this target and held a meeting on Monday to discuss this.
“We have started preparing the road map to push India further up the rankings next year,“ a senior government official said. “The session was conducted to identify what India needs to do more and with timelines after interaction with the stakeholders. The target is to break into the top 30 in the next three years.“ India was ranked 142nd out of 189 countries below Sri Lanka and Pakistan in the World Bank's ease of doing business rankings benchmarked to June 2014. The list is based on 10 parameters such as starting a business, dealing with construction permits, getting electricity, paying taxes, enforcing contracts and resolving insolvency.
An eight-member World Bank team that met central and state government officials signaled that enforcing contracts is a key area of concern for India. Onno Ruhl, the World Bank's country director for India, also participated in the session, which deliberated issues such as making it easier to start a business, getting construction permits and enforcing contracts.
The government and World Bank took stock of progress on reforms related to construction permits in Mumbai and New Delhi, getting an electricity connection and doing business. The government looked at global best practices in key areas that could be adopted in India.
“The challenges are on two issues essentially -one is enforcement of contracts, where the judiciary needs to take action, and the other is the in solvency law, which the TK Viswanath an committee is working on,“ the of ficial said. “A lot of work has already been done on cutting paperwork and procedures.“ In enforcement of contracts, the World Bank follows the evolution of a sale of a goods dispute, tracking the time, cost and number of procedures involved from the moment the plaintiff files a lawsuit until actual payment. India requires 1,420 days and 46 procedures in enforcement of contracts and is ranked 186 on this count.
On the overall ranking in the current year, the official said, “We expect India to emerge as the biggest reformer with a substantial improvement in our rankings. We have done what best was possible in the last eight months. In fact, the work has already started for next year.“
India is ranked 137 in resolving insolvencies. Last year, the government set up a committee on bankruptcy law reform chaired by former law secretary TK Viswanathan, which released its interim report earlier this year. The interim report will form the basis for a new law on bankruptcy and look at corporate insolvency in the country .
Foreign direct investment inflows into India more than doubled to $3.6 billion in April from $1.7 billion a year earlier and increased 71% from the previous month.
Among steps taken to improve ease of doing business in the country are the withdrawal of the requirement of minimum paid-up capital and common seal for companies, allowing single-step incorporation of companies and integration of 14 government services on an online single-window portal. Cross-border trade has been made easier by cutting the number of forms for export and import to three from seven and nine, respectively . The DIPP will come out with its own ease of doing business rankings for the states by August 15. It will assess states on seven parameters, including setting up of a business, allotment of land and obtaining construction permit, complying with labour regulations and environment procedures and obtaining infrastructure-related utilities.
The Department of Industrial Policy & Promotion has sought help from the World Bank to achieve this target and held a meeting on Monday to discuss this.
“We have started preparing the road map to push India further up the rankings next year,“ a senior government official said. “The session was conducted to identify what India needs to do more and with timelines after interaction with the stakeholders. The target is to break into the top 30 in the next three years.“ India was ranked 142nd out of 189 countries below Sri Lanka and Pakistan in the World Bank's ease of doing business rankings benchmarked to June 2014. The list is based on 10 parameters such as starting a business, dealing with construction permits, getting electricity, paying taxes, enforcing contracts and resolving insolvency.
An eight-member World Bank team that met central and state government officials signaled that enforcing contracts is a key area of concern for India. Onno Ruhl, the World Bank's country director for India, also participated in the session, which deliberated issues such as making it easier to start a business, getting construction permits and enforcing contracts.
The government and World Bank took stock of progress on reforms related to construction permits in Mumbai and New Delhi, getting an electricity connection and doing business. The government looked at global best practices in key areas that could be adopted in India.
“The challenges are on two issues essentially -one is enforcement of contracts, where the judiciary needs to take action, and the other is the in solvency law, which the TK Viswanath an committee is working on,“ the of ficial said. “A lot of work has already been done on cutting paperwork and procedures.“ In enforcement of contracts, the World Bank follows the evolution of a sale of a goods dispute, tracking the time, cost and number of procedures involved from the moment the plaintiff files a lawsuit until actual payment. India requires 1,420 days and 46 procedures in enforcement of contracts and is ranked 186 on this count.
On the overall ranking in the current year, the official said, “We expect India to emerge as the biggest reformer with a substantial improvement in our rankings. We have done what best was possible in the last eight months. In fact, the work has already started for next year.“
India is ranked 137 in resolving insolvencies. Last year, the government set up a committee on bankruptcy law reform chaired by former law secretary TK Viswanathan, which released its interim report earlier this year. The interim report will form the basis for a new law on bankruptcy and look at corporate insolvency in the country .
Foreign direct investment inflows into India more than doubled to $3.6 billion in April from $1.7 billion a year earlier and increased 71% from the previous month.
Among steps taken to improve ease of doing business in the country are the withdrawal of the requirement of minimum paid-up capital and common seal for companies, allowing single-step incorporation of companies and integration of 14 government services on an online single-window portal. Cross-border trade has been made easier by cutting the number of forms for export and import to three from seven and nine, respectively . The DIPP will come out with its own ease of doing business rankings for the states by August 15. It will assess states on seven parameters, including setting up of a business, allotment of land and obtaining construction permit, complying with labour regulations and environment procedures and obtaining infrastructure-related utilities.
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