India Slips By 2 Points On "Doing Business Index"

World Bank’s Latest Report: India Slips By 2 Points On “Doing Business Index”

For India, the highs come with the lows. Recently, the Sensex and the Nifty have hit record highs but the nation has ranked a disheartening 142 in the list of 189 countries surveyed for World Bank’s “Ease of Doing Business” report. Singapore has retained the number one ranking nine times in a row now. Most of India’s BRICS peers except South Africa made good on their rankings. India as well as Bangladesh and Afghanistan were the only nations in the region which did not fare well in the report. Bangladesh scored 173 while Afghanistan received the ranking of 193.

The functionaries of the World bank did stress that with a new Modi government at the helm, things may look up for India. Steps taken by the new government to lower bottlenecks and red tapes while improving administration would cause a considerable improvement in the standing of the country next year. According to the Financial Express, India is one among only three nations in Southeast Asia which did not fair well in the report.

India ranked 186th when it came to metrics for measuring enforcement of contracts. It also received a ranking of 184th in the category of “Dealing with construction permits.” The category where India has improved from its position was in protecting minority investors where the nation;s score was 7, up 14 ranks from last year.

As per the 2014, report, the country had scored 52.78 points while this year it scored 53.97. The increase was not enough to offset poor rankings because other nations progressed at a much faster pace.

Augusto Lopez-Claros, director, Global Indicators Group, Development Economics of the World Bank Group, indicated, according to Daily News and Analysis that: “It is absolutely true that the new government of Mr Modi has made it very clear that they see the creation of a better investment climate and a more business friendly environment in India a top priority. However, it is important to remember that the new Government did not come into office until the second half of May.”

Singapore scored the top rank with 88.27 points occupying the top position as far as ease of doing business is concerned. This nation was followed by New Zealand and Hong Kong. The fourth nation on the raining was Denmark. South Korea was the fifth most highly ranked nation for doing business. The US has been ranked 7th which is the same as last year. The UK reached the 8th slot from the 7th slot last year.

As far as Asian nations were concerned, China ranked 90 while Sri Lanka was 99. Nepal scored 108 rank while Indonesia scored a rank of 114. Maldives scored a rank of 116 and Bhutan scored 125. Pakistan attained ranking of 128. When it comes to doing business, India has a long way to go. India ranked 158 for starting the business, 137 for getting electricity, 121 for registering property and 136 for getting credit. it ranked 156 in paying taxes, 137 in resolving insolvency and 126 in trading across borders.