The World Bank every year assign ranks to countries all over the world on the basis of ease of doing business in their countries. These rankings are allotted totalling the score achieved on 10 factors that play a major role in doing business. Top rankings are allocated to countries that have better, more specific regulations for doing businesses and stronger protections of property rights. As per the ‘Doing Business 2020’ report released by World Bank, India is ranked 63 out of 190 economies for 2019. India had jumped 14 ranks up, making 63rd spot in 2019 from 77th rank in 2018 and had ranked 100 in 2017.
The factors considered to rank are listed below:
Starting Business
Employing workers
Dealing with construction permits
Getting electricity
Registering Property
Getting Credits
Protecting Minority Investors
Paying Taxes
Enforcing contracts
Resolving Insolvency
The major reforms that helped India to jump up ranks are :
Business incorporation within 2 days by the introduction of a single form.
Digitization tax processes by the introduction of GST, e-assessments and e-payments.
Online single window for fast track construction permits.
Faster custom clearances via e-platforms making across borders trading easier.
Rationalized and simplifying investors’ KYC norms.
Digitization of property records.
The new law introduced for resolving corporate disputes and insolvency.
Reduced taxes are 25% for companies with an annual turnover of less than INR. 250 crores.
Recent Government Initiative
Make in India- to promote investments, foster innovation, develop skills and build best in class manufacturing infrastructure.
Start-up India- to foster entrepreneurship and promote innovation conducive for the extension of start-ups.
Digital India- to modify India into a digitally authorized society and knowledge economy.
Smart Cities- a project with an outlay of US$ 7.69 billion setting up Special Purpose Vehicles in 19 cities.
Housing for All 2022- to establish 48 million households by 2022.
FDI Approvals- mandated clearance within 10 weeks.
Atmanirbhar Bharat – stimulus packages worth crores of rupees were announced to revive COVID-19 affected economy.
Fun Facts about New India
India is Ranked 3rd largest economy and fastest-growing economy globally with a current growth rate- 7.9%.
Among the 877 million working population, 65% of the population is between the age group 15-64yr. Thus, India to become the youngest country with a current median age of 28.4yr.
2nd largest internet users Current- 455 million.
2nd largest road network of 5.4 million KM.
3rd largest power generation with capacity of 368.8 GW.
4th largest railway network with capacity of more than 23 million people travelling per day.
6th largest food & grocery market all over the world; food grain production touched 276 million tones.
In global competitiveness report ranked 68th among 141 countries.
Global Innovation Index jumps 5 places and reached 52nd
Jump by 7 positions in UNTAD e-commerce from 80th in 2018 to 73rd in 2019.
The retail market ranked 2nd in GRDI, expected to grow to US$ 1.4 trillion by 2021.
India’s incredible progress in doing business rankings over the past 3 years is a tremendous achievement, especially for a complex and bureaucratic economy. The constant emphasis on improving business reforms at the central and state levels had made significant improvements. The focus now needs to be on continuing this move to continue and upgrade its ranking.
At AJSH, we assist our clients in setting up their businesses in India and ensuring they comply with all statutory requirements like accounting, bookkeeping, tax filings & assessments, payroll, auditing, trademark registration, business structuring, etc. If you would like to know more about the proficiency of doing business in India, kindly contact us.
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