India: Ease of Doing Business report for 2018

  • Recently, World Bank has released Ease of Doing Business report for 2018, which placed India at 100th rank out of 190 countries.

  • India had ranked poorly on "ease of doing business" for past few years.

  • In the previous rankings for 2017, it ranked at 130th position.

  • India is among the top 30 nations in three categories:

  1. Getting electricity

  2. Securing credit

  3. Protecting minority investors.

  • Country is one of the top 10 improvers in this year's assessment.

  • The country improved its ranking on six out of the 10 parameters becoming the only large economy to do so.

  • The World Bank noted that India lagged in areas such as:

  • Starting a business

  • Enforcing contracts

  • Dealing with construction permits.

  • Factors for improvement in ranking:

  1. Paying taxes:

  • In 2016, Income Computation and Disclosure Standards (ICDS), an accounting standard for the

purpose of income tax was introduced.

  • It advances some income and postpones some expenses to arrive at the profitability of companies.

  • Hence, data gathering has become automated due to the use of the latest software.

  1. Dealing with construction permits:

  • India made obtaining a building permit faster by implementing an online single-window system for the approval of building plans.

  1. Getting credit:

  • India has strengthened access to credit by amending the rules on the priority of secured

creditors outside reorganization proceedings and adopting a new insolvency and bankruptcy code.

  1. Trading across borders:

  • India reduced border compliance time by improving infrastructure at the Nhava Sheva Port in Mumbai.

  • Export and import border compliance costs reduced in Delhi and Mumbai after removal of merchant overtime fees.​

  1. Resolving insolvency:

  • The country has regulated the profession of insolvency administrators apart from adopting a new insolvency and bankruptcy code.

  1. Starting a business:

  • India streamlined the business incorporation process by introducing the SPICe form (INC-32) that which combined the application for the Permanent Account Number (PAN) and the Tax Account Number (TAN) into a single submission.

#WorldBank #EaseofDoingBusinessreportfor2018 #indianeconomy #ias2018currentaffairs

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