Skip to main content

India slips in World Bank ranking on starting business, registering property; overall 30 point jump is from pre-GST data

Ease of doing business ranking: Blue 2018, Red 2017
By Rajiv Shah
Prime Minister Narendra Modi may have tried to extract political capital out of the 30 point jump noted in the World Bank’s latest Ease of Doing Business report, calling the 100th ranking among 190 countries “historic”, a result of what he called “all-round and multi-sectoral reform push of Team India”, but a comparison with the last year’s report suggests there is little cheer about it.
In fact, India’s ranking in what could be considered as perhaps the most important factor for calculating ease of doing business, “starting a business”, has actually slipped by one point, from 155th to 156th. In yet another factor, which could be considered equally significant, "registering property", India’s ranking has slipped even more – from 138 to 154.
While the World Bank also notes slip in two other factors, “getting electricity” from 26 to 29 and “trading across borders” from 143 to 146, in a few other factors, the improvement is not as drastic – for instance, the ranking was 185th in “dealing with construction permits” last year, which reached 181st this year, and “enforcing contracts” it was 172nd and has come up to 164th.
Interestingly, the biggest jump in ease of doing business, from 172 to 119, a 50 point jump, is the factor “paying taxes”.
It is, however, not known how the World Bank experts – who depended on their data for the period up to June 2017 – would react to this factor now, as the new tax regime, Goods and Services Tax (GST), began being implemented in India on July 1, 2017. GST is known to be facing all-round opposition from virtually all sections of the business for being implemented in an extremely roughshod manner.
Tax payment analysis is based on pre-GST data 
There is also an improvement in a few other factors – such as “getting credit”, from 44th to 29th, “protecting minority investors” from 13th to 4th, and “resolving solvency”, from 136 to 103.
Interestingly, a comparison between the eight countries covered for the South Asia region – Bhutan, India, Nepal, Sri Lanka, Maldives, Pakistan, Bangladesh and Afghanistan – suggests that, insofar as the factor “starting a business” is concerned, India ranks 8th, worse than even the backward Afghanistan, which ranks 7th.
While overall India is found to be ranking No 2nd in the region (Bhutan is No 1), in “dealing with construction permits” India ranks 7th, as against Pakistan 5th and Bangladesh 4th. Further, India ranks 5th in “enforcing contracts” as against Pakistan’s 4th; 4th in “resolving insolvency” and “trading across border”, 3rd in paying taxes, and 1st in “getting electricity”, “getting credit” and “protecting minority investors”.
Titled “Doing Business 2018: Reforming to Create Jobs”, the new World Bank report praises India for standing out this year “as one of the 10 economies that improved the most in the areas measured by Doing Business”, other countries being Brunei Darussalam, Thailand, Malawi, Kosovo, Uzbekistan, Zambia, Nigeria, Djibouti and El Salvador.
Even as pointing out that India is among the “top improvers”, along with Brunei Darussalam and Thailand, for implementing “the highest number of business regulation reforms in 2016/17”, the World Bank does not fail to note “inefficient licensing and size restrictions cause a misallocation of resources, reducing total factor productivity by preventing efficient firms from achieving their optimal scale and allowing inefficient firms to remain in the market.”

Comments

Uma said…
Till now no one bothered about this report - in fact, most people had not even heard of its annual release. That is why it is easy for the government to hoodwink the public - no one bothers to clarify that the report is from July 2016 to June 2017 and therefore the effects of demonitisation and shoddy implementation of GST are not taken into account.

Let us see what happens next year.

TRENDING

ISKCON UK 'clarifies' after virus infects devotees, 5 die due to big temple meet

By Rajiv Shah
The International Society for Krishna Consciousness (ISKCON), United Kingdom (UK), has admitted that at least 21 of its devotees were infected because of the spread of the coronavirus amongst the UK devotee community following the March 12 funeral and March 15 memorial of the Bhaktivedanta Manor temple president, in which about 1,000 people participated. Regretting that five of the devotees have passed away, the top Hindu religious in Britain body does not deny more may have been infected.

Mallika Sarabhai releases speech she was 'not allowed' to give at NID Convocation on Feb 7

Counterview Desk
The National Institute of Design (NID) in Ahmedabad, a Ministry of Commerce and Industry body, landed itself in controversy following its decision to put off its 40th convocation ceremony, where noted danseuse Mallika Sarabhai was invited as chief guest. The ceremony was scheduled to be held on February 7.

As corona virus 'travels' to rural areas, NGO begins training tribals, marginalised women

By Souparno Chatterjee*
The World Health Organization (WHO) has declared corona virus a pandemic. Originating from Wuhan in China, it has traversed the entire globe, almost, and claimed more than 16,000 lives already. That’s largely the urban population. In India, despite all the preparedness and war-like promptness to safeguard against the pandemic, several lives have been lost , and hundreds of individuals have tested positive.

Rani Laxmi Bai, Tatya Tope 'martyred' by East India Company, Scindia's forefathers

By Our Representative
In an email alert to Counterview, well-known political scientist Shamsul Islam has said that was “shameful for any political party in democratic India to keep children of Sindhias in their flock” given their role during the First War of Indian Independence (1857). In a direct commentary on Madhya Pradesh Congress leader Jyotiraditya Scindia moving over to BJP, Prof Islam has quote from a British gazetteer to prove his point.

COVID-19: Dalit rights bodies regret, no relief plan yet for SCs, STs, marginalized

By Our Representative
In a letter to Prime Minister Narendra Modi, the National Dalit Watch-National Campaign on Dalit Human Rights, endorsed* by several other Dalit rights organizations, have insisted, the Government of India should particular care of the scheduled castes and tribes, trans folks, persons with disabilities and the women and children from these communities, while fighting against COVID-19 pandemic.

Coronavirus scare ‘pushing’ people from Northeast India into more hardship

By Rishiraj Sinha, Biswanath Sinha*
“No one is born hating another person because of the colour of his skin, or his background or his religion. People learn to hate, and if they can learn to hate, they can be taught to love, for love comes more naturally to the human heart than its opposite.” – Nelson Mandela
***

Gujarat govt plan to 'banish' Gandhian activist anti-democratic, unconstitutional

By Rohit Prajapati*
The current Central and Gujarat governments, and their bureaucracy, have been and are still unable to answer and address the concerns raised, with facts, figures, and constitutional provisions, regarding the terror of tourism in the name of the Statue of Unity and tourism projects surrounding it.

Gujarat construction workers walk home as Rs 2,900 crore welfare fund lies unused

By Our Representative
Situated behind the Gujarat University, some of the families of the migrant construction workers from Dahod and Panchmahals districts of Gujarat, and a few from Rajasthan and Madhya Pradesh, who had stayed put in make-shift shanties in Ahmedabad’s sprawling GMDC Ground, have begun a long journey, by foot, back to their home villages in the eastern tribal belt of Gujarat.

Modi, Shah 'forget': Gandhi’s first Satyagraha was against citizenship law of South Africa

By Nachiketa Desai*
Hindu fanatic Nathuram Godse assassinated Mahatma Gandhi once on January 30, 1948 but his followers raising the war cry of ‘Jai Sriram’ are killing the Mahatma every day. In his home state of Gujarat, Gandhiji was killed a thousand times in 2002 when over 2,000 Muslims were butchered, their women raped, homes and shops plundered and set on fire and even unborn babies ripped out of the wombs of their mothers.