{"id":34253,"date":"2018-10-30T16:32:27","date_gmt":"2018-10-30T11:02:27","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=34253"},"modified":"2018-10-30T16:32:27","modified_gmt":"2018-10-30T11:02:27","slug":"ease-of-doing-business-in-an-uneasy-india-hides-not-reveals","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/ease-of-doing-business-in-an-uneasy-india-hides-not-reveals\/","title":{"rendered":"Ease of Doing Business in an uneasy India hides, not reveals:\u00a0"},"content":{"rendered":"<p><a href=\"http:\/\/indianexpress.com\/article\/opinion\/ease-of-doing-business-in-an-uneasy-india-hides-not-reveals-4916706\/\"><span style=\"font-weight: 400;\">Ease of Doing Business in an uneasy India hides, not reveals<\/span><\/a><span style=\"font-weight: 400;\">:\u00a0<\/span><\/p>\n<p><b>Context<\/b><\/p>\n<p>The World Bank Group\u2019s Doing Business 2018 report ranks India at 100 out of 190 countries<\/p>\n<p><strong>What is Ease of Doing Business Index?<\/strong><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">The Ease of doing business index is an index released by the World Bank Group in its Doing business report.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Higher rankings indicate better, usually simpler, regulations for businesses and stronger protections of property rights.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">New Zealand has topped the Ease of Doing Business rankings in 2017.<\/span><\/li>\n<\/ul>\n<p><strong>What are the indicators on which this index is calculated?<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Starting a business<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Dealing with construction permits<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Getting electricity<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Registering property<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Getting credit<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Protecting investors<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Paying taxes<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Trading across borders<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Enforcing contracts<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Resolving insolvency<\/span><\/li>\n<\/ul>\n<p><b>Where does India stand in the Ease of Doing business index?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India ranked 130 among 190 countries however, has not made any improvement from the last year as its rank has been downgraded to 131. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> This lack of improvement in the rankings though Indian Government was hoping to jump substantially this year has triggered a strong reaction and disappointment.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Though several reform measures have been taken by the Government, it feels they are not reflected in these rankings.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> The only bright side in these rankings is that India has improved substantially in getting electricity for businesses and enforcing contracts.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Out of the 10 parameters, India has slipped down in 5 parameters and on other 3, there is a status quo.<\/span><\/li>\n<\/ul>\n<p><strong>Why India should not base its result on basis of this index?<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">World Bank index is based on limited data.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There is a disjunct between how things get done in india and Bank\u2019s methodological approach .Many achievements have not been covered by the report due to methodological issues.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Eg- According to DIPP, Online filing and payment of returns at the Employee Provident Fund Organisation has been implemented, but it was not considered by the World Bank, even after it shared \u201clogs and voluminous evidence\u201d of the same.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Bank\u2019s report is based on <\/span><b>data collected from very few cities<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Centre has only partial control over several of these sub indices as it needs states support to bring the required legislations.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It does not directly measure more <\/span><b>general conditions<\/b><span style=\"font-weight: 400;\"> such as a nation\u2019s proximity to large markets, quality of infrastructure, inflation, or crime.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Rankings are<\/span><b> incompletely reflective<\/b><span style=\"font-weight: 400;\"> of the significant transformation in the overall business environment in key areas such as openness to FDI, online procedures, MSME facilitation<\/span><\/li>\n<\/ul>\n<p><b>What are the loopholes in the ease of doing business index?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> In India\u2019s case, the business environment in only Delhi and Mumbai are used to compile the national ranking. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">These rankings also focus a lot more on the laws and rules that are on the books and do not necessarily capture the daily experiences of businesses.<\/span><\/li>\n<\/ul>\n<p><b>Conclusion<\/b><b>:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The government initiated an online single window clearance system for faster approvals of building plans. This will presumably lead to obtaining building permits faster<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Government should not be obsessed about this Index although all other BRICS nations are ahead of India.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It should go ahead and keep on doing what it thinks is necessary for betterment of small and medium enterprises in coordination with the state governments.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">However, setting a national target of attaining a certain rank has also helped in bringing consensus across other parties involved like state governments and judiciary to improve overall environment of India in doing business.<\/span><b> \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/b><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A lot of the parameters on which our rankings are poor are the ones where the processes are yet to be modernized.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Ease of Doing Business in an uneasy India hides, not reveals:\u00a0 Context The World Bank Group\u2019s Doing Business 2018 report ranks India at 100 out of 190 countries What is Ease of Doing Business Index? The Ease of doing business index is an index released by the World Bank Group in its Doing business report.&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/ease-of-doing-business-in-an-uneasy-india-hides-not-reveals\/\">Continue reading <span class=\"screen-reader-text\">Ease of Doing Business in an uneasy India hides, not reveals:\u00a0<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-34253","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704591660},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34253","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=34253"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34253\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=34253"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=34253"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=34253"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}