Business, Economy

PM Modi lauds India’s climb up the Ease of Doing Business Index

Prime Minister Narendra Modi today claimed that his mantra of “Reform, Perform, and Transform” has elevated India to a higher ranking on the World Bank’s Ease of doing business index.

This year, India ranked 130 out of 189 countries by climbing four places on the index.

In an interview with Network 18, Narendra Modi said, “Our systems, processes, forms were so complicated. These have been reformed, so our rankings are going up. These small things need to be improved. Even today there exists licence raj in some areas. That needs to go. This is an important reform that is happening at every level — administrative, governance, legal.”

India improved its position based on policy changes for starting a new business, obtaining construction permits, and accessing electricity.

Although the report states that the number of days it takes to start a new business in India is 29, the wait has been reduced to 12 days from 29 in the past year, according to the Department of Industrial Policy and Promotion (DIPP).

Till last year, it took almost eight months to get a construction permit in Delhi and five months in Mumbai, as reported by World Bank. The government introduced online construction permits in Mumbai and Delhi to hasten the clearance procedures and to cut red tape.

Speaking about the reforms that gave India a better ranking, Narendra Modi said, “Usually it is one or two things that are talked about, but today growth is being talked about in all sectors. Electricity production has gone up and so has demand. Infrastructure work is also growing rapidly and that happens when there is demand in the economy. From all this it looks like we have moved ahead to better days.”

India has failed on parameters such as accessing credit and paying taxes. The other areas in which India ranks poorly are registering property, trading across borders, enforcing contracts, and resolving insolvency.

 

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