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

News Snippets

  • Maratha quota bill likely to be tabled in Maharashtra assembly today
  • Arvind Kejriwal skips ED summons for the 6th time, says the case is in court and will follow court's decision
  • PM Modi says UP has gone from 'red tape' to 'red carpet' in 7 years of 'double engine' government
  • Farm unions reject government offers, to resume Delhi march from today
  • Centre says some Aadhar cards in Bengal 'deactivated' due to technical glitz, will be activated back soon
  • Supreme Court stays LS privilege panel summons to Bengal officials over BJP MP Sukanta Majumdar injury case
  • Supreme Court junks Sandeshkhali petition, says it cannot be compared to Manipur, asks petitioner to approach Calcutta HC
  • Supreme Court gets tough on Chandigarh mayoral elections, asks for ballot papers and video footage, does not order re-election
  • Government starts withdrawing old small tax demands, up to Rs 25000 per entry till FY 2009-10 and up to Rs 10000 per entry from FY 2010-11 to FY 2014-15 with an overall ceiling of Rs 1 lakh per tax payer
  • Stocks remained positive on Monday: Sensex gained 281 points to 72708 and Nifty 81 points to 22122
  • Jasprit Bumrah likely to be rested for 4th Test while K L Rahul may be back
  • FIH Pro League hockey: India beat Spain 8-7 in shootout
  • SP leader Salim Sherwani, miffed at no Muslim candidate given RS ticket, quits party
  • Army going for big (Rs 57000cr) upgrade in combat vehicles to replace T-72 tanks
  • Mamata Banerjee says the BJP is doing nothing to resolve the Sandeshkhali dispute but instead fanning the fires to escalate it
History created in Supreme Court as Chandigarh mayoral poll ballots counted in court, judges declare AAP candidate Kuldeep Kumar winner after taking into account the votes defaced by returning officer Anil Masih
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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.