It seems like Prime Minister Narendra Modi’s aspiration to turn India into a top investment destination is gaining some momentum.
India now ranks 130 out of 189 countries in the ease of doing business, moving up 12 places from last year, according to a World Bank report.
World Bank’s Chief Economist and Senior Vice President Kaushik Basu said:
“For any big economy, a rank improvement of 12 is a remarkable achievement. Going from 142 in the world to 130, as India has done, is very good sign. It gives a good signal about the way things are moving in India.”
Singapore continues to remain the easiest country to do business, followed by New Zealand, Denmark, South Korea, Hong Kong, Britain and the US.
The neighbouring countries China and Pakistan ranked 84th and 138th out of 189 countries respectively.
Citing reasons for India’s jump, the World Bank noted that two reforms- requirements for a paid-in minimum capital and certificate to commence business operations- which were eliminated helped in streamlining the process of business in India.
Lopez Claros, Director of the Global Indicators Group World Bank, said:
“What is significant about India is that they are in the middle of what appears to be a very, very ambitious process of reforms affecting a broad range of areas captured by the Doing Business indicators.”
He added that he expects that if this process continues, if it is sustained, and the authorities show the degree of determination which has been in evidence in the last year, then substantial improvements could be seen in coming year.
The report, which is in its 13th year, looks at how the regulatory environment hampers or help small and medium-size companies to conduct business in a country and trading across borders.
The report further said that India ranks 133rd in trading across borders and ranks 136th in resolving insolvency.