India has improved its score in the World Bank’s global Ease of Doing Business rankings, rising 14 notches to be placed 63rd out of 190 countries on the back of “sustained business reforms”.
India, along with other top improvers, implemented a total of 59 regulatory reforms in 2018-19, accounting for a fifth of all reforms recorded worldwide, stated the World Bank in a release.
“Special focus given by the top leadership of the country, and the persistent efforts made to drive the business reforms agenda, not only at the central level but also at the state level, helped India make significant improvements,” said Junaid Ahmad, World Bank Country Director in India. “The focus now needs to be on continuing this trend to maintain and improve its ranking.”
What are these reforms?
In the course of a year, India has made it easier to start a business in the country. It has further streamlined, in Delhi, the process and reduced the time and cost of obtaining construction permits and improved building quality control by strengthening professional certification requirements. In addition to this, Mumbai’s streamlining of obtaining building permits has made it faster and less expensive to get a construction permit.
Its efforts to make it easier to trade across borders and resolve insolvency have also helped improve its ranking.
The government’s goal was to be among the top 50 economies by 2020.
What are the problem areas?
The country still lags in areas like enforcing contracts and registering property. “It takes 58 days and costs on average 7.8 per cent of a property’s value to register it, longer and at greater cost than among OECD high-income economies. And it takes 1,445 days for a company to resolve a commercial dispute through a local first-instance court, almost three times the average time in OECD high-income economies,” stated the release.