For the first time ever, India has jumped to 100th in the World Bank’s ease of doing business ranking this year, a massive jump of 130th to 100th which drive by reforms in access to credit, power supplies and protection of minority investors.
“ Historic jump in “Ease of Doing Business” rankings is the outcome of the all-round & multi-sectoral reform push of Team India” PM Narendra Modi Tweeted
Historic jump in ‘Ease of Doing Business’ rankings is the outcome of the all-round & multi-sectoral reform push of Team India. pic.twitter.com/DhrEcuurgi
— Narendra Modi (@narendramodi) October 31, 2017
Prime Minister Narendra Modi called this achievement “historic” India. In the World Bank’s report last year India was on 130 among with the 190 economies assessed and it was ranked 142 in 2014.
After Modi govt took a charge over three years government had discredited the World Bank’s methodology by stating that it failed to consider the federal nature of India and varying levels of development in each state by attempting to rank India on the basis of the feedback it gets from two metro cities- Delhi and Mumbai. World Bank has not changed their ranking parameters or methodology, so the only way to change in fortunes for India was the government have to take a proactive action to influence the results.
Inability to handle insolvency cases, India has improved from 136th last year to 103th this year. This 33 point jump contributed most to change India’s fortune when it comes to World Bank’s Ease of Doing Business rankings this year was the long pending law the country enacted to fasten the process of winding up loss-making companies. This law itself has contributed so much to the overall ranking, the practice of law will give the results in the coming years.
The World Bank also recognized India’s efforts to improve the business, it becomes one of top 10 improvers this year. India is also the only large country to have achieved such significant shift in this year. The World Bank stated that India continues to perform well in the areas of Protecting Minority Investors, Getting Credit and Getting Electricity.
The 8 indicators on which reforms were implemented in two metro cities Delhi and Mumbai both covered by the report are: starting a business, dealing with construction permits, getting credit, protecting minority investors, paying tax and resolving insolvency.
In the press conference sharing details of the report, Finance Minister Arun Jaitley said on Tuesday
“The Prime Minister said we should be in the top 50. The fact that in three years we have jumped from 142 to 100, I believe this is doable”