oppn parties India Improves in Ease Of Doing Business, But Is It Enough?

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  • GST Council to defer rate rejig due to inflation
  • Centre to sell 29.5% in Hindustan Zinc at an expected price of Rs 38000cr
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  • Delhi Additional district judge Nikhil Chopra says there is no legal right for people seeking to worship deity inside Qutab Minar, says it survived 800 years without worship so "let it survive like that"
  • Punjab chief minister Bhagwant Mann sacks state health minister Vijay Singla over corruption charges. Singla was later arrested by the ACB
  • Protestors burn the house of Andhra minister P Viswaroop and MLA Satish Kumar over renaming of Konaseema district as B R Amberdkar Konaseema
  • Gyanvapi: Varanasi district judge decides to first hear the 'maintainability' plea filed by mosque management
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  • In a bid to cool edible oil prices, Centre allows duty-free imports of 20 lakh tonnes each of crude sunflower oil and crude palm oil per annum this year and next
  • Centre caps sugar exports to ensure availability of stocks in the domestic markets to cool prices
  • Stock markets get the jitters as RBI signals rate hike and government moves in to control inflation: Sensex tumbles by 236 points to 54052 and Nifty goes down by 89 points to 16125
Yasin Malik of JKLF gets two life terms in terror funding case /////// Kashmir TV artist killed and her nephew injured in a terror attack in Hushroo in Budgam district
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India Improves in Ease Of Doing Business, But Is It Enough?

By Ashwini Agarwal

In advance information before the Ease of Doing Business Index is published in October, the World Bank has indicated that India is among the top 20 most improved nations list. The bank has indicated that India has improved the most in four areas that count in the final rankings - starting a business, resolving insolvency, trading across borders and construction permits.

India was ranked 77 in the 2018 list. But it stood at 137 in starting a business, at 52 in construction permits, at 80 in trading across borders and at 108 in resolving insolvency. It is clear that the policies of the government regarding the GST, the Insolvency and Bankruptcy Code and the changes to the Companies Act have contributed to the improvement.

But if one goes through the ranking parameters, it is obvious that India still needs to do a lot to improve three major hindrances to business - registering property (166), paying taxes (121) and enforcing contracts (163).

Let us first take up the problem of enforcing contracts. The legal system in India is plagued with delays and it takes ages to get a verdict. Although there was the talk of commercial courts speeding up the process, not much has been heard of them since. This is one area where India has to improve a lot if it wishes to attract FDI. Commercial courts must be set up fast and the arbitration process must be strengthened to resolve commercial disputes.

Registering property is related to land reforms and easy conversion of land is not always available to those wishing to set up industries. Although land is a state matter, reforms are overdue and it seems that there is no political will in tackling this sensitive matter.

When the final list comes out, Indian might move up by 5 to 10 ranks. There will be a celebration in New Delhi. But the fact remains that for an economy aspiring to be the best in the world, a rank of 65 or 70 is shameful. We must be right up there in the top 10. The government must work to cut the red tape and make doing business easy.