On the back of as many as 37 reforms, India jumped 30 ranks last year to make its place in top 100 on the list. World Bank to release 2019 report on this date
The World Bank will release its much-awaited 2019 edition of the Ease of Doing Business on October 31 (Wednesday) — and the question is: will India repeat its last year’s success? On the back of multiple reforms, minus the GST, India jumped 30 ranks last year to make its place in top 100 on the list.
By adopting and implementing as much as 37 reforms, India even became one of the top ten improvers among 190 economies assessed by the World Bank for the elite list. Even as India was lauded for bringing reforms under the “Paying Taxes” category, the Goods and Services Tax (GST) was not included during the assessment last year.
This year, however, the Ease of Doing Business report might as well play a crucial role in telling the world whether the implementation of the GST was a business-friendly move when it assesses the new indirect tax regime. Among key reforms, Insolvency and Bankruptcy Code (IBC) was featured by the World Bank as one of the most promising reforms, but it was the smaller ones that stole the show for India.
World Bank said that India made starting a business faster by merging the applications for the Permanent Account Number (PAN) and the Tax Account Number (TAN) and by improving the online application system.
In both Delhi and Mumbai, paying taxes was made easier by requiring payments to the Employees Provident Fund to be made electronically, and introducing administrative measures that make it easier to comply with corporate income tax regulations.
This year too, India will be judged on ten crucial 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.
While praising India’s efforts, the World Bank also recommended areas where India needed improvement. The report said that even as India reduced the time needed to register a new business to 30 days from 127 days 15 years ago, the number of procedures — as many as 12 — was still cumbersome.
India’s ranking is based on the study of the system in the two cities: Mumbai and New Delhi. The ease of doing business is an index created by the World Bank to measure regulations directly affecting businesses and overall environment such as market situations, infrastructure, inflation, crime etc.