India?s steady business reforms have translated well for the country as it ranks among the most improved world economies that took significant steps. However, the position when compared with other nations still remains almost the same as last year?s, according to a report on business reform from the International Finance Corporation, a wing of the World Bank.
?India eased business start-up by establishing an online system for value added tax registration. The country reduced the administrative burden of paying taxes by abolishing the fringe benefit tax and improving electronic payment,? said the IFC report on business regulation reform.
The country?s position in the last year?s IFC report on business regulation was at 135 while this year it is at 134, with no difference. India?s major competitor China is at a much better position than India at 78th from last year?s 79th position.
India continues to improve its electronic registration system for new firms ? MCA 21? by allowing online payment of stamp fees, a very positive step for making it easier for local firms to do business.
India is among the 40 most-improved economies since 2005 which made significant changes in improving business regulations at a steady pace. The country has implemented 18 business regulation reforms in seven areas covered. Many of these reforms focused on technology?implementing electronic business registration, electronic filing for taxes, electronic collateral registry, and online submission of customs forms and payments.
Speaking to FE, Dahlia Khalifa, senior strategic advisor, World Bank-IFC said India has shown improvement as per most of the yardsticks of the survey in the last five years. The country is among the 40 major economies in the world that have made doing business easier in the last five years, she said. Khalifa added the country has also been global and regional leader in embracing technology solutions in the last five years. More government services are now being offered online.
Though dealing with construction permits is still a very difficult task in the country as it was ranked at the 177th position among countries where it is the most difficult to get a construction permit.
Other economies in South Asia are also improving regulation with faster, transparent, electronic systems. Pakistan, the region?s highest-ranking economy on the regulatory ease of doing business (with a global ranking of 83 among 183 economies), reduced the time for exporting by improving electronic communication between the Karachi Port authorities and private terminals in the past year. Bangladesh made business start-up easier by enhancing the country?s online registration system.
Further, the business environment has become conducive with regard to women too as the report pointed out that in India women can now complete many registration formalities online, including filing incorporation documents, paying stamp fees and registering for value added tax.
?They no longer have to stand in line. This is a good thing, because burdensome procedures can affect women more than men,? the report said. A study in India found that women had to wait 37% longer than men on average to see the same local government official.