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India has jumped 30 positions on the World Bank’s Ease of Doing Business 2018 ranking to move into the top 100 on the back of sustained reforms. It is also one of the 10 economies that improved the most in the areas measured by the international financial institution.
Last year the report had ranked India at 130.
The annual report, which ranks countries on business-friendliness, procedural ease, regulatory architecture and absence of bureaucratic red tape, could not have come at a more opportune time for the government that is battling to help the economy claw out of a three-year slowdown.
Also read: India jumps 30 places, breaks into top 100 of World Bank's Ease of Doing Business rankings
The rankings could jump further in the coming year after factoring in the GST, which kicked in from July 1.
The report, which was first launched in 2003, considered reforms and policy changes taking place during June 1 of 2016 to June 2 of 2017.
Here are the key takeaways from the World Bank report:
-India is among top 5 economies that improved the most in terms of the overall distance to frontier (DTF) score among the 190 countries studied.
- The Doing Business 2018 report said that India has adopted 37 reforms since 2003 and nearly half of these reforms have been implemented in the last four years.
-The report said that the reforms making it easier to do business were implemented in 8 out of 10 indicators.
-The score on overall distance to frontier metric, one of the key indicators, has improved to 60.76 this year compared to 56.05 last year
The indicators that saw ranking go up are — Starting a business, dealing with construction permits, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency.
-The ranking improved the most for Paying Taxes indicator from 172 last year to 119 this year.
-The ranking on Resolving Insolvency indicator jumped to 103 this year from 136 last year on the back of implementation of the Insolvency and Bankruptcy Code.
-In Starting a Business, India has reduced the time needed to register a new business to 30 days now, from 127 days 15 years ago. However, the number of procedures is still cumbersome for local entrepreneurs who need to go through 12 procedures to start a business in Mumbai compared to five procedures on an average in OECD high-income economies.
South Asia is the only region not represented in the top 50 ranking for ease of doing business.
-Regions with the highest share of reforming economies in Doing Business 2018 are Europe and Central Asia, South Asia and Sub-Saharan Africa.
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