Doing business still not easy in India
The Economic Times, September 10, 2009, Page 9
Despite Reforms, Country Slips To 133rd Spot On World Bank-IFC Index
Our Bureau NEW DELHI
INDIA slipped a notch to 133rd position among 188 countries in the Doing Business report for 2010 compiled by the World Bank and International Finance Corp as its consistent economic reforms were overshadowed by better business environment in other countries.
The Indian part of the report was based on regulations in 19 cities, including Mumbai, Ludhiana, Hyderabad, Bhubaneswar and Kochi.
The report highlighted the fact that the country had reformed bankruptcy laws in the year up to June 2009 by appointing more judges in the courts that judge payment defaults.
“India has been a consistent reformer. A country’s rank in the index is an average of 10 indicators, each with 10% weightage. India increased the number of judges in the specialised debt recovery tribunals that led to a major removal of blockages. While India reformed in the area of insolvency, other countries reformed in more than one area,” Dahlia Khalifa, senior strategy adviser at World Bank, told ET.
The annual report ranked Singapore, New Zealand and Hong Kong as the top three economies for the second consecutive year.
The report examines business environment for starting a business, dealing with construction permit, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business.
Meanwhile, India moved up one position to 49th in the World Economic Forum’s Global Competitiveness Report, 2009-10, which is based on a different set of indicators.
Specialised debt recovery tribunals were assigned more judges in the year up to June 2009, enabling them to pick up the pace of resolving foreclosures. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, has made it easier for courts to handle foreclosure procedures, the report said.
India took steps such as establishing inter-ministerial panels to work with a wide range of state governments for making the environment more friendly for business, Ms Khalifa said.
The report also highlighted the country’s progress in electronic registration of companies, which cut costs.
India needs an efficient administration and easier construction permits, Ms Khalifa said. “In the area of investor protection, India ranks 41st among 183 nations, while it stands at 30th in access to credit. While India can be a role model for many nations in these aspects, it can get inspired from them in other areas,” she said.
India stands at 175th position among 183 countries when it comes to ease of dealing with construction contracts. China and Hong Kong have the best norms in this respect.
The report also highlighted Maharashtra’s progress in reducing the cost of property transactions, which did not affect its revenues. “Switching to lower or fixed fees makes it faster and easier to transfer property while reducing under-reporting of property values. It also means that the capital gains and property taxes collected later will be based on more realistic values,” it said.
REPORT CARD
How did subcontinent fare?
India has slipped one place. All its neighbours better-ranked, except Afghanistan (160). Pakistan ranks 85th, followed by Sri Lanka (105), Bangladesh (119) and Nepal (123)
Why did India slip?
Deterioration in parameters like starting a business, obtaining credit, investor protection, dealing with construction permits & employing people
Easiest places to do business
Singapore, New Zealand, Hong Kong, US, Britain, Denmark, Ireland, Canada, Australia and Norway
How is the ranking done?
It is based on analysis of regulations for starting business, getting credit, paying taxes, registering property, trading across borders, enforcing contracts, protecting investors, employing workers and closing business
Top 10 reformers
Rwanda, Kyrgyz Republic, Macedonia, Belarus, UAE, Moldova, Colombia, Tajikistan, Egypt & Liberia
The Economic Times, September 10, 2009, Page 9
Despite Reforms, Country Slips To 133rd Spot On World Bank-IFC Index
Our Bureau NEW DELHI
INDIA slipped a notch to 133rd position among 188 countries in the Doing Business report for 2010 compiled by the World Bank and International Finance Corp as its consistent economic reforms were overshadowed by better business environment in other countries.
The Indian part of the report was based on regulations in 19 cities, including Mumbai, Ludhiana, Hyderabad, Bhubaneswar and Kochi.
The report highlighted the fact that the country had reformed bankruptcy laws in the year up to June 2009 by appointing more judges in the courts that judge payment defaults.
“India has been a consistent reformer. A country’s rank in the index is an average of 10 indicators, each with 10% weightage. India increased the number of judges in the specialised debt recovery tribunals that led to a major removal of blockages. While India reformed in the area of insolvency, other countries reformed in more than one area,” Dahlia Khalifa, senior strategy adviser at World Bank, told ET.
The annual report ranked Singapore, New Zealand and Hong Kong as the top three economies for the second consecutive year.
The report examines business environment for starting a business, dealing with construction permit, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business.
Meanwhile, India moved up one position to 49th in the World Economic Forum’s Global Competitiveness Report, 2009-10, which is based on a different set of indicators.
Specialised debt recovery tribunals were assigned more judges in the year up to June 2009, enabling them to pick up the pace of resolving foreclosures. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, has made it easier for courts to handle foreclosure procedures, the report said.
India took steps such as establishing inter-ministerial panels to work with a wide range of state governments for making the environment more friendly for business, Ms Khalifa said.
The report also highlighted the country’s progress in electronic registration of companies, which cut costs.
India needs an efficient administration and easier construction permits, Ms Khalifa said. “In the area of investor protection, India ranks 41st among 183 nations, while it stands at 30th in access to credit. While India can be a role model for many nations in these aspects, it can get inspired from them in other areas,” she said.
India stands at 175th position among 183 countries when it comes to ease of dealing with construction contracts. China and Hong Kong have the best norms in this respect.
The report also highlighted Maharashtra’s progress in reducing the cost of property transactions, which did not affect its revenues. “Switching to lower or fixed fees makes it faster and easier to transfer property while reducing under-reporting of property values. It also means that the capital gains and property taxes collected later will be based on more realistic values,” it said.
REPORT CARD
How did subcontinent fare?
India has slipped one place. All its neighbours better-ranked, except Afghanistan (160). Pakistan ranks 85th, followed by Sri Lanka (105), Bangladesh (119) and Nepal (123)
Why did India slip?
Deterioration in parameters like starting a business, obtaining credit, investor protection, dealing with construction permits & employing people
Easiest places to do business
Singapore, New Zealand, Hong Kong, US, Britain, Denmark, Ireland, Canada, Australia and Norway
How is the ranking done?
It is based on analysis of regulations for starting business, getting credit, paying taxes, registering property, trading across borders, enforcing contracts, protecting investors, employing workers and closing business
Top 10 reformers
Rwanda, Kyrgyz Republic, Macedonia, Belarus, UAE, Moldova, Colombia, Tajikistan, Egypt & Liberia
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