India continues to be on 77th position in terms of ease of doing business. The Doing Business Report 2019, commissioned by the World Bank, also highlights that India is among the top 10 improvers on the list once again.
India, along with eastern Africa’s Djibouti, made it the top 10 improvers list last year as well.
While Afghanistan and Turkey appeared on the list for the first time, other countries on the list with the “most notable improvement” in performance on the Doing Business indicators are China, Azerbaijan, and along with the African nation of Togo, Kenya, Côte d’Ivoire and Rwanda. Among this pack, Afghanistan had the biggest improvement in the latest rankings.
These economies have implemented total 62 business regulatory reforms across all sectors. China and India alone have implemented 13 reforms to improve the EODB standing, which goes a long way towards influencing investors to pour in funds into the country. It also helps international companies identify attractive markets for their expansion.
“The two economies with the largest populations, China and India, demonstrated impressive reform agendas. Both governments took a carefully designed approach to reform, aiming to improve the business regulatory environment over the course of several years,” the report reads.
The Doing Business report points out that India has implemented norms to simplify the process of starting a business, getting construction permits, electricity supply, credit flow, paying taxes are trading across borders.
The World Bank report also highlighted the implementation of the goods and services tax (GST), making the regulation process “faster” in the country. Replacing multiple taxes with one uniform tax has made tax-paying simpler, the report states.
Moreover, the country has also made tax payment “less costly” by reducing the corporate income tax rate to 22% for existing domestic companies and 15% for new domestic manufacturing companies. The Indian government also raised the interest in employees’ provident funds’ scheme.
It adds that the abolishment of site inspections for registering companies under the Shops and Establishments Act has also made the process simpler.