NEW DELHI: Disappointed with the one-position rise in the World Bank’s ease of doing business ranking this year, India is aiming for a quantum leap of 80 spots next year. Key ministries are being made responsible for delivering on various parameters to make this possible.
The Department of Industrial Policy and Promotion (DIPP) wants India to break into the top 50 next year, up from a ranking of 130 out of 190 countries.
Ten nodal ministries have to ensure that India does better on 10 measures. India had hoped for entry into the top 100 when the rankings were announced in October.
Ten nodal ministries have to ensure that India does better on 10 measures. India had hoped for entry into the top 100 when the rankings were announced in October.
“It is very much possible to achieve this target with planned effort,” a senior DIPP official said.
For instance, the ministry of corporate affairs will helm the effort to improve India’s ranking of 155 in the starting business category.
“There are many stakeholders when it comes to easing starting a business such as labour ministry, corporate affairs etc.,” said the official. “For each area we will now have one ministry holding the mantle.”
Each ministry has to hold a weekly meeting to ensure steps are being taken to improve the ease of doing business. Ministry officials will also need to meet stakeholders, gather feedback and address problems.
“DIPP will provide all the support and act as a coordinator among all the ministries in this exercise,” said the official cited above. “We have to be in the top 50 and where we already are in that place we have to target being in the top 10.”
The 10 criteria include electricity connections, enforcing contracts, starting businesses, registering property, resolving insolvencies, construction permits, getting credit, protecting minority investors, paying taxes and trade across borders.
Industry has backed the government on reforms in the last two years and said the rankings were not reflective of the improvement in overall business environment in key areas such as openness to foreign direct investment (FDI), online procedures, MSME (micro small and medium enterprise) facilitation and so on.
Commerce and industry minister Nirmala Sitharaman has said reforms undertaken by the Centre and states have not been adequately captured in the ranking.
The World Bank acknowledged efforts made by India. “The country has embarked on a fast-paced reform path, and the Doing Business 2017 report acknowledges a number of substantial improvements,” the report said, citing electricity connections to businesses, tax payments, electronic payments of employee state insurance contributions, electronic filing of integrated customs declarations, the new Companies Act, passage of the commercial courts and the insolvency and bankruptcy code.
The World Bank interacts with users before acknowledging reforms. This could be a reason why some of the changes made by India have not been reflected in the ranking, experts said.
Source: economictimes.indiatimes.com