{"id":53767,"date":"2019-11-06T19:00:29","date_gmt":"2019-11-06T13:30:29","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?p=53767"},"modified":"2019-11-06T15:57:46","modified_gmt":"2019-11-06T10:27:46","slug":"7-pm-what-makes-doing-business-easier-6th-november-2019","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/7-pm-what-makes-doing-business-easier-6th-november-2019\/","title":{"rendered":"7 PM | What makes doing business easier | 6th November, 2019"},"content":{"rendered":"\n<p><strong>Context:\n<\/strong>Ease\nof doing Business Report and improvements India made.<\/p>\n\n\n\n<p><strong>More\nin news:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>India&#8217;s rank jumps 14 places in World\nBank&#8217;s ease of doing business ranking.<\/li><li>India\u2019s ranking improved 79 places from 142nd in 2014 to 63rd\nfor 2020, a record for a major economy<strong><\/strong><\/li><\/ul>\n\n\n\n<p><strong>Ease\nof doing Business Report:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Ease of doing business is an index published by the World Bank. It is an aggregate figure that includes different parameters which define the ease of doing business in a country.<\/li><li>It is computed by aggregating the distance to frontier scores of different economies. The distance to frontier score uses the \u2018regulatory best practices\u2019 for doing business as the parameter and benchmark economies according to that parameter.<\/li><li>For each of the indicators that form a part of the statistic \u2018Ease of doing business,\u2019 a distance to frontier score is computed and all the scores are aggregated. The aggregated score becomes the Ease of doing business index.<\/li><li>Doing Business covers 12 areas of business regulation. <ul><li>Ten of these areas\u2014starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency\u2014are included in the ease of doing business score and ease of doing business ranking. <\/li><li>Doing Business also measures regulation on employing workers and contracting with the government, which are not included in the ease of doing business score and ranking.<\/li><\/ul><\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"604\" height=\"201\" src=\"https:\/\/i0.wp.com\/blogadmin.forumias.com\/wp-content\/uploads\/2019\/11\/op.jpg?resize=604%2C201&#038;ssl=1\" alt=\"\" class=\"wp-image-53768\"\/><\/figure>\n\n\n\n<p><strong>Reforms\nthat improved the rank of India:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Starting a business:<\/strong> India\nmade starting a business easier by abolishing filing fees for the SPICe company\nincorporation form, electronic memorandum of association, and articles of association.\nThis reform applies to both Delhi and Mumbai. <\/li><li><strong>Dealing with construction permits:<\/strong> India\n(Delhi) streamlined the process, reduced the time and cost of obtaining\nconstruction permits, and improved building quality control by strengthening\nprofessional certification requirements. India (Mumbai) streamlined the process\nof obtaining a building permit and made it faster and less expensive to get a\nconstruction permit. <\/li><li><strong>Trading across borders: <\/strong>India\nmade trading across borders easier by enabling post clearance audits,\nintegrating trade stakeholders in a single electronic platform, upgrading port\ninfrastructures, and enhancing the electronic submission of documents. This\nreform applies to both Delhi and Mumbai. <\/li><li><strong>Resolving insolvency:<\/strong> India\nmade resolving insolvency easier by promoting reorganization proceedings in\npractice. Resolving insolvency has shown a jump of 56 spots, endorsing the\nsuccessful implementation of the Insolvency and Bankruptcy Code, 2016.India also made resolving insolvency\nmore difficult by not allowing dissenting creditors to receive as much under\nreorganization as they would receive in liquidation. This reform applies to\nboth Delhi and Mumbai. <\/li><\/ul>\n\n\n\n<p>In 2015, the government&#8217;s goal was\nto join the 50 top economies on the ease of doing business ranking by 2020.\nWhile the competition to move up the ladder would increase and become much\ntougher, India is on track to be within top 50 of the Ease of Doing business in\nthe next year or two, the World Bank said.<strong><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"639\" height=\"388\" src=\"https:\/\/i0.wp.com\/blogadmin.forumias.com\/wp-content\/uploads\/2019\/11\/tp.jpg?resize=639%2C388&#038;ssl=1\" alt=\"\" class=\"wp-image-53769\"\/><\/figure>\n\n\n\n<p><strong>India:\nAreas of Weakness <\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Enforcing\nContracts: <\/strong>Across key parameters, India\u2019s weakest spot remains\nenforcing contracts. Here India ranks at 163. It\u2019s rank remained unchanged. The\nreport did not comment specifically on India\u2019s track record in this area but\nsaid that it takes into account the \u201ctime and cost to resolve a commercial\ndispute and the quality of judicial processes\u201d while judging ranking.<\/li><li><strong>Protection\nOf Minority Investors: <\/strong>While India ranks relatively high in\n\u2018protection of minority investors\u2019, it saw its rank slip in the latest survey.\nThe country\u2019s rank slipped from 7 to 13 even though its score remained\nunchanged.<\/li><\/ul>\n\n\n\n<p><strong>What\nelse can be done to improve the rank?<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Enable\nthe self-employed: <\/strong>Largest numbers of working Indian are self\nemployed. However, the World Bank report only covers two cities- Delhi and\nMumbai. It gives a narrow coverage to the diverse India. Any business cannot\nflourish on its own as its fortunes are tied to the health of the economy.\nThere is need to focus on improving the overall economic structure of Indian\neconomy.<\/li><li><strong>Creating\ndemand: <\/strong>There\nis need to focus equally on generating aggregate demand while focusing on\nimproving ease of doing business. At the present scenario it is unwise to judge\nthe state of economy on basis on the ease of doing business Index. India is\nfacing an aggregate demand slowdown, thereby require fiscal stimulus.<\/li><li><strong>Focusing\non Public Capital Formation:<\/strong> During the global economic crisis of\n2008-09, the fiscal deficit was hiked from 2.5% to 6% of GDP. The composition\nof the public spending matters for growth. Increase in the fiscal deficit took\nthe form of rise in public consumption rather than public capital formation,\nwhich had temporary effects. The focus needs to shift to the capital formation\nfor increasing aggregate demand and raising the potential supply of the\neconomy. <\/li><\/ul>\n\n\n\n<p><strong>Conclusion:\n<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>India is among top 10 improvers in 2020\nreport. The 10 top improvers are Saudi Arabia, Jordan, Togo, Bahrain,\nTajikistan, Pakistan, Kuwait, China, India, and Nigeria. <\/li><li>However, India still lags in areas such as\nenforcing contracts (163rd) and registering property (154th). It takes 58 days\nand costs on average 7.8% of a property\u2019s value to register it, longer and at\ngreater cost than among OECD high-income economies. <\/li><li>It takes 1,445 days for a company to resolve a commercial\ndispute through a local first-instance court, almost three times the average\ntime in OECD high-income economies. <\/li><li>World Bank pointed out that, to make it to\ntop 50 in Ease of Doing Business, India should focus on enforcing contracts,\nland administration system.<\/li><\/ul>\n\n\n\n<p><strong>Source:\n<\/strong><a href=\"https:\/\/www.thehindu.com\/opinion\/lead\/what-makes-doing-business-easier\/article29891844.ece\">https:\/\/www.thehindu.com\/opinion\/lead\/what-makes-doing-business-easier\/article29891844.ece<\/a><strong><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Context: Ease of doing Business Report and improvements India made. More in news: India&#8217;s rank jumps 14 places in World Bank&#8217;s ease of doing business ranking. India\u2019s ranking improved 79 places from 142nd in 2014 to 63rd for 2020, a record for a major economy Ease of doing Business Report: Ease of doing business is&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/7-pm-what-makes-doing-business-easier-6th-november-2019\/\">Continue reading <span class=\"screen-reader-text\">7 PM | What makes doing business easier | 6th November, 2019<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49370,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[130,9],"tags":[],"class_list":["post-53767","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-7-pm","category-public","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2019\/07\/7-PM.png?fit=1000%2C500&ssl=1","views":{"total":0,"cached_at":"","cached_date":1704771687},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/53767","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=53767"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/53767\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49370"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=53767"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=53767"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=53767"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}