The Indian Government has been facing strong criticism since the couple of weeks owing to the economic slowdown forecasts by the reputed global institutions.
The International Monetary Fund (IMF), World Bank and Global Competitiveness Index released forecasts, earlier this week, indicating a decline in India’s economic growth.
In contrast to earlier forecasts, the World Bank’s ‘Doing Business Index 2020’ gave some boost to the country with its new announcement!
For the third consecutive year, India progressed by another 14 positions in the World’s ‘Ease of Doing Business’ ranking securing 63rd spot in the latest rankings released on October 24, 2019.
“The administration’s reform efforts targeted all of the areas measured by Doing Business, with a focus on paying taxes, trading across borders, and resolving insolvency. The country has made a substantial leap upward, raising its ease of doing business ranking from 130 in Doing Business 2016 to 63 in Doing Business 2020,” the report stated.
The ‘Make in India’ initiative and other FDI-favoring reforms have been accredited for their contribution to the economy in this progress.
‘Successfully Third Time’
With this ranking, India also secured its position among the top 10 performing economies for the third consecutive year.
“This is the third year in a row that India makes to top 10 in Doing Business, which is a success which very few countries have done over the 20 years of the project, Without exception, the other countries that have done this are very small, population-wise, and homogeneous,” Simeon Djankov, Director of Development Economics at the World bank told PTI.
The country was ranked 142nd out of 190 nations in 2014, 130th in 2017, 100th in 2018 and progressed 23 places to 77th place for 2019.
Now the ‘Doing Business 2020’ ranking has India progressed further from 77th to 63rd position!
What Favored India?
“India is the first country of its type to achieve that. It has jumped this year by 14 positions,” adds the World Bank official.
The ‘Make in India’ campaign, successful implementation of Insolvency & Bankruptcy Code, taxation and other important reforms were accredited for this progress.
“Before the implementation of the reform, it was very burdensome for secured creditors to seize companies in default of their loans. Since its implementation, more than 2,000 companies have used the new law. Of these, about 470 have commenced liquidation and more than 120 have approved reorganization plans, with the remaining cases still pending,” the World Bank said citing the implementation of Insolvency & Bankruptcy code.
Besides this, encouraging start-up culture and effective dealing with cross-border trading and construction permits were other factors that contributed.
India – Doing Business Index (DBI)
Looking at the trend, India is on track to make it to the Top-50 of the Doing Business Index in the next one-two years, Simeon adds.