According to the World Bank's 'Ease of Doing Business' rankings, India is now ranked 77th in the world. Compared to the previous year, the country has improved by 23 places, with notable improvements in 6 out of 10 indicators used to score entire countries. In last year's report, India was placed at 100.
The World Bank has also put India among the top 10 economies in the world showing the most improvements.
Riding on major economic reforms related to taxation, insolvency, and other fiscal matter, this is the second consecutive year in which the country has moved forward in the Ease of Doing Business rankings, reports FirstPost.
The World Bank released its 'Ease of Doing Business' 2019 report, which noted that India has improved its standings on a total of six out of the 10 criteria, all related to how easy or difficult it is to start and carry out a business in the country. These include construction permits, electricity, credit, taxation, cross border trade, contracts, and insolvency policies.
In 2014, the country was ranked 142 out of the 190 countries that are part of the yearly survey, notes the report. Since then, India has steadily improved in rankings.
One of the highlights, as pointed out by World Bank this year for India, is that paperwork was really streamlined. Multiple application forms, for example, were reduced down into a general incorporation form. This just makes it easier for businesses to get started.
"India made paying taxes easier by replacing many indirect taxes with a single indirect tax, the GST, for the entire country," read the report. Registering for the GST is also easier and much quicker. Paying GST is also less expensive now, notes the report. The reduction in corporate income tax rates and the employees' provident funds scheme rate paid by the employer, was also mentioned in the World Bank report.
The revamped insolvency framework has also been praised by the international institution. Debt recovery tribunals in India has, "reduced non-performing loans by 28 percent and lowered interest rates on larger loans, suggesting that faster processing of debt recovery cases cut the cost of credit."
Other highlights on how India is getting easier to do business include reducing the cost and time associated with exports and imports. Upgraded port infrastructure and digitising the submission of documentation with digital signatures added to the final scores. The process of getting the building permit and construction permits is easier and less expensive.
As for the lists' toppers—New Zealand sits on top of the list of 190 countries. Singapore, Denmark, and Hong Kong take the next 3 spots. The US is eighth on the list, China is placed 46, Pakistan sits at 136.