While welcoming the 30 place jump in India’s ranking in terms of ease of doing business, the government today said that this will improve substantially when the impact of big tickets reforms like GST will be visible on the ground.
As per the latest ranking released by the world bank today India has moved up by 30 spots in a single year, from 130 to 100, the biggest jump by any country.
Addressing the media in national capital Delhi, finance minister Jaitley said that the central government has been trying to improve on all the 10 parameters assessed by the world bank and this substantial jump is reflection of the work done by the government in the last three years.
Finance Minister said: ‘It’s so tough that even after reform unless the ground situation changes before June and it becomes visible it is not factored into the ranking.’
Quoting from the report, finance minister said that India ranks at the fourth position in the world in terms of protecting the interest of minority share holders.
In terms of availability of credit to businesses India ranks at the 29th spot, the country holds the same position in terms of providing new electricity connection to businesses.
Finance Minister said India made the biggest jump in terms tax compliance as India improved its ranking by 53 spots and came to 119th position from the 172nd position last year.
India is the only major economy among the 10 countries which have carried out structural reforms.
India is the only country among the BRICS countries that has been listed as top reformer by the world bank in its latest global ease of doing business ranking released on Tuesday.
However, the impact of India’s biggest tax overhaul could not be factored into the latest report as it only takes in to account those changes that can be felt on the ground by the stake holders by the June first in a given year.
Since GST was implemented from the first of July this year that is why it’s impact on improving the ease of doing business could not be factored into this year’s report.
Finance Minister said impact of reforms taken by the government such implementation of bankruptcy code was visible on the ground as India’s ranking in this area improved substantially by 33 places. Last Year India ranked at 136th places in terms of resolving insolvency but this year it has been ranked at the 103rd position.
Talking about the areas in which India still lags behind such as the enforcement of contracts as India still ranks at the 164th position in the world, finance minister said this was an area where the work was still under progress.
Jaitley said the government was setting up commercial courts and law ministry was setting up arbitration centres across the country and it was a work in progress.
In terms of starting a new business, India has still been ranked at the 156 position in the world. Talking about this, finance minister said today anybody can register and start a new company in just one day but this thing has not been factored in this year’s ranking.
Referring to problem areas like the delay in obtaining permissions for construction of building etc., finance minister these approvals were granted by the local bodies which are responsibility of state governments.
He said: ‘We are requesting in this regard.’
Jaitley said in terms of reforms there was sufficient amount of work which is actually a work in progress and its impact will be visible in the future rankings.
Jaitley said: ‘Prime Minister Modi had asked the government to take India among the top 50 countries in terms of ease of doing business and I think it is doable.’