"We have asked World Bank to add Kolkata and Bengaluru in the list of cities to be surveyed for the rankings," Finance Minister Nirmala Sitharaman said.
The Indian government has asked World Bank to represent India's diversity and said more than two cities need to be surveyed for Ease of Doing Business (EODB) rankings.
"Till now, only two cities used to be covered for ease of doing business rankings. We have asked World Bank to add Kolkata and Bengaluru in the list of cities to be surveyed for the rankings," Finance Minister Nirmala Sitharaman said at a press briefing on October 24.
India jumped to 63rd position in World Bank's latest Ease of Doing Business rankings, soaring 14 notches from last year, as the multilateral body endorsed a string of reforms—from the signature 'Make in India' initiative to insolvency resolutions — that the Narendra Modi government has launched over the last few years.
India's ranking jumped to 52 in 2019 from 108 last year, a 56 position jump, in resolving insolvency. The credit for this goes to the Insolvency and Bankruptcy Code (IBC), which came into force in 2016.
In the three years of the incorporation of the Insolvency and Bankruptcy Code (IBC), 21,000 cases were referred to the National Company Law tribunal (NCLT).
Of these 21,000 cases, 10,000 have been settled and 8,500 cases settled prior to admission. Another 1,500 cases were settled through resolution or liquidation. The remaining cases are at different stages of insolvency.
So far, close to 150 cases have been resolved and 600 companies have been ordered to liquidate. Close to 300 cases have been withdrawn or rejected by the NCLT.
Sitharaman said the government will make necessary efforts to improve rankings in the 'starting business' category, where the jump has been of only one position.
"All efforts will be taken to reach top 50 rankings for EODB. Efforts taken by the industries ministry will help in fixing issues faced by businesses in the country. We want to make sure steps are taken to improve GST compliance," Sitharaman said.
Significant improvements have been registered in 'resolving insolvency, dealing with construction permits, registering property, Trading across boards and paying taxes indicators, the government said in a press release.
India has improved its rank in 7 out of 10 indicators and has moved closer to international best practices, according to a press release from the Finance Ministry.
"India has made a significant jump in EODB rankings from 142 in 2014 to 63 in 2019," said DPIIT Secretary Guruprasad Mohapatra.
He also said that India has made the highest improvement in 3 years by any large country since 2011."Recovery rate improved to 71.6 percent from 26.5 percent last year," Mohapatra said.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.