Thanks to the efforts of Prime Minister Narendra Modi and his government to improve the ease of doing business in the country, India has jumped 12 ranks to occupy 130th position, according to the latest World Bank (WB) ranking. In 2015, it stood at 142nd.
Singapore has topped the chart once again, even as India’s distance to frontier (DTF) score used to compile the rankings improved to 54.68 in 2016 from 53.97 in 2015.
As the cut-off date for the ranking was June 1, it implied that the improvement has been achieved in a short span on one year of this government taking over. In 2015 ranking, during the second term of the UPA Government, India had slipped a few notches to 142.
The World Bank report says India is one of the countries that has made the most improvement. “India is the South Asian economy recording the biggest increase in the distance to DTF score since 2004,” the report said taking note of the fact that the country has cut down time taken to start a business.
The biggest improvement was in the ‘Getting Electricity” sub component with India’s rank jumping to 70 in 2016 from 137 the year before in the 139 country ranking. The Narendra Modi Government has set itself target of breaking into top 50 in this ranking.
“In 2014, the Government of India launched an ambitious programme of regulatory reforms aimed at making it easier to do business. Spanning a range of areas measured by Doing Business, the programme represents a great deal of effort to create a more business-friendly environment, particularly in Delhi and Mumbai,” the report said appreciating the effort but cautioned results will take time.
But if the efforts are sustained over the next several years, they could lead to substantial benefits for Indian entrepreneurs — along with potential gains in economic growth and job creation,” the report noted.
The ranking is based on business environment in Delhi and Mumbai with 53 and 47 respective weights for these cities. The report noted India made starting a business easier by eliminating the minimum capital requirement and the need to obtain a certificate to commence business operations. Several other initiatives were going on June 1, the cut-off date for this year’s data collection, the report noted.
“The utility in Delhi made the process for getting an electricity connection simpler and faster by eliminating the internal wiring inspection by the Electrical Inspectorate. The utility in Mumbai reduced the procedures and time required to connect to electricity by improving internal work processes and coordination,” the report noted flagging two areas of improvement.