Principal economic advisor, Sanjeev Sanyal on Wednesday said that it was government's effort to clean up the business failures which led to India's historic improvement on World Bank's Ease of Doing Business Ranking 2018.
Principal economic advisor, Sanjeev Sanyal on Wednesday said that it was government’s effort to clean up the business failures which led to India’s historic improvement on World Bank’s Ease of Doing Business Ranking 2018. India leapt 30 ranks and vaulted into list top 100 countries with ease of doing business.
“The way we have been cleaning our banking system, it dramatically improved our ease of doing business ranking… By introducing IBC (Insolvency and Bankruptcy Code) we have allowed clean up business failures, which is a natural part of the entrepreneurial economy, led to this particular success of this country,” Sanjeev Sanyal said in an interview with ET Now.
The principal advisor said that the government acknowledges disruptions caused by the structural reforms, but it was the time for India to take up such reforms. “Our current account is good, inflation is within limits, foreign exchange reserve is ample if we don’t do it now when will we do it?,” Sanjeev Sanyal asked.
Speaking of the areas where India is still lagging behind, Sanjeev Sanyal said that the vision of Prime Minister is the “idea of constructive federalism” and the government is focusing on bringing changes on the ground by creating competition between states and by facilitating transparency in ease of doing business. “Once states will be able to compete, we will be able to fix things on ground,” he said.
India’s ranking in the ease of doing business is crucial for the Narendra Modi government as the Prime Minister has been pitching the country as an ideal place for doing businesses with initiatives like ‘Make In India’ and ‘minimum government, maximum governance’. It was a setback for India to improve its rank only by one place last year, leaving room for critics to question Prime Minister’s vision to pitch India as an investment opportunity.