Govt upset with World Bnank’s ranking for not including 12 key reforms

RSTV Bureau

Minister for Commerce and Industry Nirmala Sitharaman expressed disappointment over the recent World Bank’s recent ease of doing business rankings

“Bit disappointed that efforts of government and states not captured in World Bank’s ease of doing business report,” said Nirmala Sitaraman

Union Commerce & Industry Minister Nirmala Sitharaman addressing a press conference in New Delhi Photo-PTi

Union Commerce & Industry Minister Nirmala Sitharaman addressing a press conference in New Delhi
Photo-PTi

In the regent WB’s report, India continues to rank low at 130th position in terms of ease of doing business, with the country seeing little or no improvement in dealing with construction permits, getting credit and other parameters.

Government regretted that the report did not take into consideration 12 key reforms undertaken by it after coming to power in 2014.

India’s place remained unchanged from last year’s original ranking of 130 among the 190 economies that were assessed on various parameters. However, the last year’s ranking has been now revised to 131 from which the country has improved its place by one spot.

Secretary in the Department of Industrial Policy and Promotion (DIPP) Ramesh Abhishek also responded on the new ranking and said a dozen of important reforms like enactment of bankruptcy code, GST, introduction of single window system for building plan approvals and online ESIC and EPFO registrations were not “recognised by the World Bank this year”.

New Delhi: Prime Minister Narendra Modi at at Rashtrapati Bhawan in New Delhi, September 23, 2016. Photo - PTI

New Delhi: Prime Minister Narendra Modi at at Rashtrapati Bhawan in New Delhi, September 23, 2016.
Photo – PTI

He also said that government has been making efforts to further improve the ease of doing business and aims to bring the country in the top 50.

The Department of Industrial Policy and Promotion in a statement said that over the past two years, government has implemented a host of reforms to make it easier for businesses to start, operate and exit.

“It is therefore disappointing that these achievements are not covered by the report due to methodological issues,” it said.

The DIPP is expected to appoint external agencies “to help departments carry forward reforms, hold stakeholders consultations, and monitor implementation of reforms”.

When it comes to ‘distance to frontier’ — a measurement of the gap between an economy’s performance and the best practice score of 100 —  India’s score has improved to 55.27 this year from 53.93 last year and India is the only country for which the report has a box dedicated to its ongoing economic reforms.

The list of countries in the Doing Business 2017 is  topped by New Zealand while Singapore is ranked second. It is followed by Denmark, Hong Kong, South Korea, Norway, the UK, the US, Sweden and former Yugoslav Republic of Macedonia.

Neighbouring Pakistan is ranked 144th in the list.