India moved up 30 places from last year’s 130th to rank 100th in this year’s World Bank’s Ease of Doing Business report on the back of reforms taken by the Modi government. The report, treated as a barometer by global investors, assesses 190 economies on ten parameters—starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. The report notes that of the 37 reforms undertaken by India since 2003, nearly half have been implemented in the last four years, roughly concurrent with BJP coming to power with a thumping majority in 2014.
This leapfrogging will help PM Modi woo global investors. In fact, he has been pitching India as an ideal place for doing businesses with initiatives like ‘Make In India’ and ‘minimum government, maximum governance’. As a result, the country saw a record inflow, of $60 billion in FY17 as compared with $36 billion in FY14.
The report highlights that out of the eight areas in which India has made substantial progress, it still lags in starting a business; enforcing contracts, and dealing with construction permits. India ranks 29th on the ‘getting electricity’ indicator. Its corporate law and securities regulations have been recognised as highly advanced, placing India 4th globally when it comes to protecting minority investors.