A higher rank above last year’s 100 would indicate implementation of better business friendly policies
All eyes will be on the World Bank's latest Doing Business Report on October 31 with the government hopeful of a big jump in rankings, driven by the rollout of goods and services tax (GST) and the Insolvency and the Bankruptcy Code.
India leapfrogged into the 100th rank in the World Bank's Ease of Doing Business rankings last year, jumping 30 notches a year ago, in an endorsement of the string of reforms implemented by the Narendra Modi-led government.
A higher rank for India this year is expected to boost investor confidence, and will also come ahead of the assembly elections in five states—Chhattisgarh, Madhya Pradesh, Mizoram, Rajasthan and Telangana— scheduled in November-December as well as ahead of the crucial Lok Sabha elections, 2019.
This year, the government remains optimistic about India’s growing business-friendliness, driven by key reforms initiatives such as the implementation of the Goods and Services Tax (GST) in July, 2017.
India had set a target of achieving a rank of 90 in 2019 ( this year's report that factors in policy changes till June 2018) and to 30 by 2030.
A higher rank indicates that India has improved its business regulations in absolute terms—signalling that the country is continuing its steady shift towards best practices in business rules and regulation. A lower rank typically implies that there is a gap between policies and their implementation.
The World Bank every year publishes its Doing Business report that ranks 190 countries on business-friendliness, procedural ease, regulatory architecture, which includes following regulations based on ten parameters--starting a business, getting electricity, dealing with construction permits, getting credit, paying taxes, protecting minority investors, resolving insolvency, among others.
India was among the top 50 countries in three parameters—fourth position in protecting minority investors, 29th in getting electricity and credit. However, it lag in certain parameters and was ranked among the worst in dealing with construction permits, resolving insolvency, registering property, trading across borders, paying taxes and enforcing contracts.
The rankings are based on field surveys and interviews with corporate lawyers and company executives in Delhi and Mumbai. The report, which was first launched in 2003, considered reforms and policy changes taking place between June 1, 2017 and June 2, 2018.
The Modi-government has vowed to turn India into an investors' darling by removing bureaucratic sloth, eliminating red tape and reversing the country's image as a dodgy place to do business.It launched a string of signature initiatives such as "Make in India" and brought about significant legislative changes including a modern Insolvency and Bankruptcy Code.