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World Bank official lauds Modi Government’s efforts for moving up in ranking for ‘ease of doing business’. The World Bank Doing Business 2016 ranking was released on Tuesday, in which India improved from the last year’s position of 134 to 130.
India was ranked 140 in last year’s report; however this year’s report featured the re-calculated 2015 rankings, where India ranks 134. It was computed as per new methodology. Initiated in 2002, the WB Doing Business reports review business regulations as well as their enforcement across 189 countries.
The WB Global Indicators Group, Director, Augusto Lopez-Claros said, “My expectation…is that if this process continues, if it is sustained, and the authorities show the degree of determination which has been in evidence in the last year, then we could see substantial improvements in the coming year.”
According to the report, “Among South Asian economies, India made the biggest improvement in business regulation, increasing its distance to frontier score by 2 points and moving up in the ease of doing business ranking from 134 to 130. India ranks in the top 10 in Protecting Minority Investors (8), as its law grants minority shareholders strong protection from conflicts of interest and provides extensive rights to shareholders in major corporate governance.”
The report said that ‘starting a business’ and ‘getting electricity’ are the two indicators, which improved and pushed India forward. On the basis of simplified procedures recently in Mumbai and Delhi, the report said that, “Now, companies can get connected to the grid and get on with their business, 14 days sooner than before.”
Even though the number of days it takes for the beginning of a new business has marginally climbed from 28.4 last year to 29 this year, other measures were taken note of in the report, which contributed to ‘ease of doing business in India’. It was condemned by the report of the legislative changes like eliminating minimum capital requirement besides requirements to get a certificate to begin business operations.