World Bank has praised the country for making a substantial leap upward, raising its ease of doing business ranking from 130 in Doing Business 2016.
After India jumped 14 spots to rank 63 in the Doing Business 2020 report, the World Bank has praised the country for making a substantial leap upward, raising its ease of doing business ranking from 130 in Doing Business 2016. India remained in the 10 top improvers for the third time in a row, mainly for conducting a remarkable reform effort. The World Bank has mentioned four key areas where India has made significant improvements — starting a business, dealing with construction permits in India, trading across borders, and resolving insolvency.
The World Bank has said that given the size of India’s economy, these reform efforts are particularly commendable. India has also been appreciated for adopting the Doing Business indicators as a core component of its reform strategies.
The Narendra Modi-led government’s flagship “Make in India” campaign has been focussing on attracting foreign investment, boosting the private sector, and enhancing the country’s overall competitiveness. The World Bank has also attested India’s commitment to reform and to demonstrate tangible progress. In 2015 the government’s goal was to join the 50 top economies on the ease of doing business ranking by 2020 and India’s reform efforts targeted all of the areas measured by Doing Business, with a focus on paying taxes, trading across borders, and resolving insolvency.
The new report underlined that in India, lenders in the microfinance industry observed 50 per cent lower default rates as well as higher operational efficiencies. It also said that the case of India provides an example of the successful implementation of reorganisation procedures.
Highlighting, the insolvency regime of 2016, the report said that before the implementation of the reform, it was very burdensome for secured creditors to seize companies in default of their loans, but the new law introduced the option of reorganisation for commercial entities as an alternative to liquidation or other mechanisms of debt enforcement, reshaping the way insolvent firms could restore their financial well-being or close down.