India jumped up 23 spots in World Banks’s ease of doing business index, moving up from 100 to 77th position and has been ranked as one of South Asia’s top economy. The ‘ease of doing business’ index is the cumulative result of ten different parameters that constitute the index. These include starting a business, construction permits, getting electricity, getting credit, paying taxes, trade across borders, enforcing contracts and resolving insolvency.
In the context of resolving insolvency, the World Bank commends the establishment of debt recovery tribunals as they led to a staggering 28% reduction in non-performing loans and lower rates on bigger loans. In furtherance of easing business, India has also upped its ante in the export-import sector and making it more streamlined by systematic digitization such as sealing containers electronically and having the option of digital signatures.
While India showed a marked improvement in six out of ten metrics, the most noticeable leap was in the construction permits metric [181(2017-18 to 52(2018-19)]. In an interview (with ET Now), Mr. Ramesh Abhishek (DIPP Secretary) shed some light on what went on behind the scenes of this whopping jump of 129 points. According to him, this came about as a result of a considerable reduction in time and cost of acquiring a construction permit (NOC). Initially, people had to apply to various departments and agencies, inside and outside the corporation, respectively, to be granted a NOC, the DIPP Secretary revealed. Currently, this offline system has been scrapped and replaced by a new online system. This system is much more efficient, with the application being processed within 15 days at the most and if in the off-chance that NOC is not granted within 30 of such application, the applicant can enforce the option of a ‘deemed permit’.
Tags : India jumps 23 places to rank 77 in World Bank’s ‘ease of doing business’ index