Ease of Doing Business: India
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Competitiveness Index, Global: 2015
See seven graphics for 2015, and one for 2016.
2016: India jumps 16 places
ii) India vis-à-vis other BRICS countries.
India jumps 16 places in competitiveness index, Sep 28 2016 The Times of India
India jumped 16 places in the World Economic Forum's (WEF) 2016-17 Global Competitiveness Index (GCI) to emerge as the highest rising economy due to improvement in goods market efficiency, business sophistication and innovation.
India was ranked 39 out of 138 countries which were reviewed. This is the second year in a row that the country has climbed 16 places in the ranking, according to WEF.
Switzerland, Singapore and the US remain as the world's most competitive economies. China ranks 28 in the index. Among the other BRICS countries, Russia is ranked 43rd, South Africa at 47, while Brazil declined six notches to end up at 81.
“Thanks to improved monetary and fiscal policies, as well as lower oil prices, the Indian economy has stabilized and now boasts the highest growth among G20 economies,“ according to the GCI report. It measures 12 areas which include institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods and market efficiency , labour market efficiency among others. Economists said the go vernment's push to plug gaps in the economy had helped. “Relative to other economies, the Narendra Modi government has focussed on repair and reform of the economy which is pushing up India's competitiveness,“ said D K Joshi, chief economist at Crisil.“India's ranking in the World Bank's Ease of Doing Business is also likely to go up.“
Ease of business
Enforcing contracts
May 25 2015
Tedious legal process top hurdle to ease of doing biz
Sidhartha
The Narendra Modi administration's focus on ease of doing business is expected to help India report significant gains when the new rankings are released but enforcing contracts is one area where the government seems to have run up against legal hurdles, resulting in fewerthan-expected moves to simplify the cumbersome process. When it comes to enforcing contracts, India ranked a lowly 186th among 189 countries, with only Angola, Bangladesh and Timor-Leste placed lower.While officials say that the attitudes have a major role to play , experts reckon that the Indian legal process is long and cumbersome. World Bank arm International Finance Corp's Doing Business report measures the efficiency of the judicial system in resolving commercial disputes based on the time taken, the procedures involved and the cost incurred. On an average, it costs almost 40% of the claim, involves some 46 procedures and takes almost four years, 1,420 days to be precise, in Mumbai or Delhi. What's more, the Doing Business report has not recorded a single reform move in India for the last eight years.
As a result, when the government prepared a detailed blueprint for all parameters, eight steps were planned, beginning with commercial courts in Delhi and Mumbai two centres which are studied by IFC team. But apart from the commercial courts and the recent Supreme Court order paving the way for the establishment of the National Company Law Tribunal, things have moved rather slowly . The moves to be initiated include enabling district courts to completely switch over to e-management of commercial cases, which includes e-filing of complaints, e-service of summons and availability of digitally signed judgments on the web. The plan also included sensitizing district courts about exploring mediation, arbitration and conciliation under section 89 of the Code of Civil Procedure.
Similarly , there should be a limited number of adjournments so that cases are decided in a shorter span of time.
Sources in the government acknowledge that there has been little progress on several of the proposals that have been discussed over the past year to improve India's ranking on enforcing contracts. And, it is unlikely that the IFC team misses that, making it tougher for India to make significant gains in the Ease of Doing Business Rankings, sources acknowledged.
2014:India Ranks 142 in the world
Jan 17 2015
Pradeep Thakur
Ranks 142 on bank's ease of doing business list
Large pendency of cases in Indian courts and non-implementation of judicial reforms have been cited by the World Bank as one of the key reasons for India's low rank on the Bank's Index of `Ease of Doing Business'.India was ranked 142 among 189 countries last year. In a memorandum to the department of industrial policy and promotion (DIPP) under the commerce ministry, the World Bank suggested linking judges' appraisal with reduction of pendency in courts.Sources said the matter was discussed at a meeting organized by the DIPP recently to refine the performance evaluation system of judges to link their performance to the resolution of specific bottlenecks as suggested by the World Bank.
The DIPP is also coordinating implementation of the `Make in India' campaign of the Modi government.
Interestingly, the World Bank suggested that there was an urgent need for reforms in the system of performance appraisal of judicial officers in the country to bring about uniformity and infuse objectivity and standardization.
The Bank cited an example from Malaysia where implementation of a reform index for judges improved case disposal rates and reduced backlog by 50% in less than three years. Another exam ple was cited from the United Arab Emirates, where rewards were instituted for the best performers.
According to the memorandum, the liberal grant of adjournments was an often cited reason for delays in court proceedings in India. It recommended monitoring the number of times judges granted adjournments and the reasons for granting them. “This can be done through case management systems and linked to performance management evaluations,“ it said.
It asked the government to ensure that adjournments were not indefinite by setting a time limit.
Just a few weeks ago, the Modi government had written to chief justices of all 24 high courts to ensure speedier settlement of commercial and other disputes for creating a conducive investment climate and success of `Make in India' campaign.
2015: India jumps 12 places
The Times of India, Oct 29 2015
India jumps 12 places in ease of biz
Turns around many years of decline in World Bank's ranking on reforms
India has jumped 12 places in the World Bank's Ease of Doing Business index on the back of reforms undertaken by the government to improve the investment climate. The country ranks 130 out of 189 economies in the world in this year's (2016) report (ranked 142 in Doing Business 2015), marking a significant shift in the trend after several years of decline in ranking. Under the new methodology , its rank has moved to 130 from 134 in the previous year. The Doing Business 2016: Measuring Regulatory Quality and Efficiency , released on Tuesday , captures reforms implemented in 189 countries between June 2, 2014 and June 1, 2015.
In the global ranking stakes, Singapore retains its top spot. Joining it on the list of the top 10 economies with the most business-friendly regulatory environments are New Zealand, in second place; Denmark (3rd), Republic of Korea, Hong Kong SAR, China, UK, US, Sweden, Norway , and Finland. The report comes as a shot in the arm for the government battling to revive growth, attract investment and remove the regulatory and bureaucratic hurdles to business.
The report highlights two reforms that India has imple mented during the past year. It was able to amend the Companies Act in just under six months and made starting a business easier by eliminating the minimum capital requirement and the need to obtain a certificate to commence business operations, saving entrepreneurs an unnecessary procedure and five days' wait time, the World Bank said.
In both Delhi and Mumbai, the process for getting an elec tricity connection was made simpler and faster. “This year's improvement in ranking marks a significant shift in trend after several years of decline. With sustained reforms, India can make signi ficant improvements in its rankings in the next few years,“ said Onno Ruhl, World Bank country director in India.
The report also highlights a number of reforms already underway in India, which were not fully felt by the majority of businesses by June 1, 2015 but will help India further improve its rank in the coming years. In particular, it notes India's efforts to streamline the process of obtaining a construction permit in Mumbai, and new systems for e-filing and e-payment of taxes.
Ongoing efforts to introduce and enact the bankruptcy Code, movement on operationalizing commercial benches and courts in Delhi and Mumbai, efforts to introduce automation in judicial processes in courts, further digitization of land records, and integration of registration and mutation processes, and introduction and launch of National Single Window for trade may also help India improve its rank in future.
2016-17/ India rises 1 place, to 130; trails Nepal, Sri Lanka
The ranks of China, Nepal, Pakistan, Sri Lanka
Ease of business 2016-17 Despite govt's efforts, India still not an easy place for biz Oct 26 2016 : The Times of India
Ranked 130th By IFC, Far Below Top-50 Target
India moved up only one position in the International Finance Corporation's (IFC) ease of doing business rankings, triggering a strong reaction from the government which said the string of reform initiatives undertaken by it in the last one year had not been factored in by the World Bank arm.
PM Narendra Modi has set a target of reaching the top 50 by 2017, a government official told TOI.
The Doing Business 2017 report released on Tuesday showed that India was placed 130th among 190 countries that had been surveyed for the annual rankings, with Russia, Bhutan, South Africa, China, Nepal, Sri Lanka and Brazil ranking higher. New Zealand replaced Singapore as the easiest place for doing business.
While the Centre's focus on improving India's ranking and overhauling the Companies Act was lauded in the report, labour laws were flagged for creating economic distortions even as IFC took note of the plan to overhaul the regime. India's overall score improved marginally to 55.27. India's overall score im proved marginally to 55.27 as it climbed up the rankings for providing electricity connections, enforcing contracts through commercial divisions in Bombay and Delhi High Courts, easier rules for trading across borders and making Employee's Social Insurance Corporation's payments. Improving India's ranking in the ease of doing business survey has been identified as a key priority by the Modi government. The government is keen to improve attractiveness as an investment destination and has undertaken several measures to make it easier to do business in the country.
But it slipped on various other parameters and the government said that at least a dozen steps initiated by it were not recognised by IFC this year, prompting it to put in place a strategy to focus on several reform initiatives in the coming coming year. For instance, the enactment of the Insolvency and Bankruptcy Code was not factored in as the IFC team argued that the law had not been implemented, something that the government now intends to do by December-end. Similarly , it is hoping that GST implementation from April will boost India's ranking at least when it comes to ease of starting business.
“There were several areas where the World Bank team decided to go by feedback it had received although we presented detailed logs to argue that reforms had been implemented... We will continue to engage with the World Bank and address its concerns to include these reforms in next year's report. We will also engage more with stakeholders to get their feedback on the steps we take,“ industrial policy and promotion secretary Ramesh Abhishek said.
For instance, the government said the new process to get a name for incorporating a company took1.86 days but the IFC's feedback showed that it took two-seven days, Abhishek said.
States and the ease of doing business
2013: Easiest to start business in Delhi, close in Hyderabad: World Bank
PTI | Oct 30, 2013 [1]
In the 'Ease of Doing Business' ranking of 189 economies, India has dropped from 131 spot to 134 position, while Singapore continues to remain at the top.
WASHINGTON: It is easiest to start a business in New Delhi within India, while Hyderabad is the fastest for closing an enterprise, says a World Bank study.
On the other hand, Kolkata is the toughest place for closing a business among 17 cities, while Bengaluru requires the maximum efforts to start a company, it says.
The city-wise details are part of separate 216-page report by World Bank and International Finance Corporation (IFC) on doing business in India, which was on Tuesday ranked 134th globally in terms of ease of doing business.
According to the report, it requires 32 days for starting a business in New Delhi, while it takes 40 days to register a company in Bengaluru. Besides, a total of 11 procedures (any interaction of the company founders with external parties such as government agencies, lawyers and auditors) is required to register a firm in New Delhi, while 13 procedures need to be followed in case of Bengaluru, the study said.
In terms of ease of doing business within India, New Delhi is followed by Patna, Jaipur, Hyderabad and Bhubaneshwar. When it comes to closing a business, Hyderabad is best place as it takes an average of seven years to wind up an enterprise, while Kolkata is the toughest place for closing a firm by taking an average of 10.8 years.
Among other top five cities, where closing a business is easy are Ludhiana, Mumbai, Ahmedabad and Bhubaneshwar.
In the 'Ease of Doing Business' ranking of 189 economies, India has dropped from 131 spot to 134 position, while Singapore continues to remain at the top.
The rankings are based on various parameters including starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.
Overall, India's business environment has come for criticism on various issues in the past including in Vodafone tax dispute.
2016: Telangana replaces Andhra at no. 1
Sidhartha, Ease of doing business race hots up among states, Oct 10 2016 : The Times of India
After Bihar & U'khand, Now Telangana At No. 1, Replaces Andhra
The race to decide the easiest state for doing business in India has gone down to the wire.
If the year began with Bihar in the lead, it was Uttarakhand that led the race for the past few months. Now, Telangana is on top, dethroning arch rival Andhra Pradesh. The gap between the two is just one hundredth of a percentage point. On Sunday evening, India's youngest state, Telangana, had a score of 96.98% compared to Andhra's 96.97%.
And last year's winner Gujarat, which dropped to the sixth position just 10 days ago, is now placed third with a score of 94.99% as a World Bank team goes through the last 100 steps taken by Indian states before releasing the rankings. When the rankings were released for the first time last year, states were gauged on 98 parameters for improving the regulatory framework for business. This year, they are being graded on the basis of their performance on 340 parameters -so far the most detailed exercise of its kind.
States were asked to submit the steps they had taken on performance indicators such as ushering in transparency , sing le-window clearances, availability of land, construction permit enablers and environmental registration enablers. Their submissions are still being validated and marks assigned.
“We are taking a little time in releasing the rankings because we want to be sure that the steps that states are claiming to have initiated are properly verified,“ said an officer.
The idea of releasing the rankings -which are dyna mic and available online -is to prod states to move ahead with improving business processes, often a crucial factor in investors choosing where to invest.
States have taken it very seriously , with some hiring consultants to ensure that the steps that are taken do not go waste.
Data shows that Telangana has a positive response on 321 parameters, one more than Andhra but less than Gujarat's 322. In all cases, the maximum number of reform initiatives has come on environment registration enablers. Environment and forest-related clearances were seen as the biggest stumbling block for investors, especially at the state level.
Telangana has taken 27 steps each on easing construction permit related regulations and setting up systems for single-window clearances.
Oct 2016: AP, Telangana top-- DIPP, World Bank
- Andhra Pradesh and Telangana emerged as joint toppers
- Gujarat lost its top slot and was placed third
- Himachal, Tamil Nadu and Delhi were identified as states where acceleration is required.
Andhra, Telangana easiest states to do business
NEW DELHI: Andhra Pradesh and Telangana emerged as joint toppers in the ease of doing business, according to the rankings for states released by the government on Monday, while Gujarat lost its top slot and was placed third.
Telangana and Andhra ended the closely-contested contest with a score of 98.78 per cent on the 340 parameters that states were ranked on.
Chattisgarh retained its fourth position and was followed by Madhya Pradesh, Haryana, Jharkhand, Rajasthan, Uttarakhand and Maharashtra. They were classified as leaders in the rankings by the department if industrial policy and promotion along with the World Bank.
Karnataka, Uttar Pradesh, West Bengal and Bihar were classified as "aspiring leaders", while Himachal, Tamil Nadu and Delhi were identified as states where acceleration is required.
Ease Of Doing Business ranks
(Department of Industrial Police and Promotion and World Bank Report)
1. Andhra Pradesh and Telangana
3. Gujarat
4. Chhattisgarh
5. Madhya Pradesh
6. Haryana
7. Jharkhand
8. Rajasthan
9. Uttrakhand
10. Maharashtra
Financial transparency ratings
2015
The Times of India, Nov 04 2015
Dipak Dash
India betters financial transparency ratings
Jumps 13 spots in 2 years, now at 45th
India has made significant progress in the past two years in financial transparency . According to the global financial secrecy index (FSI) report released by Tax Justice Network (TJN), India ranked 45 in the list of 92 countries in 2015 in comparison to 32 in 2013, which is seen as a big jump. The ranking takes into account the processes put in place to bring transparency and reduce secrecy around financial dealings.
'Innovative' Index
2016
The Times of India, Aug 17, 2016
India has been ranked 66th in a list of most innovative economies, jumping 15 places from last year, according to a new UN report which calls for more transparent policies if the country aspires to become a global driver of innovation.
In the report by the UN World Intellectual Property Organisation (WIPO), India moved up 15 spots from 81st last year to 66th this year in the overall global rankings.
The Global Innovation Index 2016, released by the WIPO, Cornell University, and the multi-nation business graduate school INSEAD, said India ranks among the top 50 economies overall in two pillars: Market sophistication, 33, and Knowledge and technology out-puts, 43.
The country maintains stable or improved rankings across all pillars, with the most significant improvements in Human capital and research, up 40 spots and Busines sophistication, up 59 spots. Within Human capital and research, India data coverage increased, specifically in graduates in sciences and engineering, ranked eighth overall in 2016 while this was a missing value last year, affecting the jump in its ranking. India's ranking in the Business sophistication pillar is affected most by a substantial improvement in Knowledge workers, up 46 spots and Knowledge absorption, up 33 spots.
India also improves in the ranking of firms offering formal training by 56 spots to reach 42nd place. "Furthermore, India improves across all indicators within the Knowledge absorption sub-pillar and it turns in a solid performance in the GII (Global Innovation Index) model's newly incorporated research talent in business enterprise, where it ranks 31st," the report said.
However, India shows weakness in two sub-pillars of business environment, 117th, and education, 118th and within this has potential to improve in the the ease of starting a business and pupil-teacher ratio. "India has all the ingredients needed to become a global driver of innovation: A strong market potential, an excellent talent pool and an underlying culture of frugal innovation. Innovative countries have demonstrated the leverage of their cultural advantage to capture markets," the report said.
Similarly, India can build on its cultural bias of frugality and sustainability to capture markets not only within its shores but globally. "For this to happen India's industries need to have the hunger to be at the top of the value chain, its customers have to be more demanding, its policies have to be more transparent, and its talent pool has to get more hands-on experience while simultaneously growing to leverage the global talent pool," the report said. Stay updated on the go with Times of India News App. Click here to download it for your device.
