India languishes at 134th place in 'Ease of Doing Business’ ranking 2014

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The latest World Bank’s ranking on the ease of ‘Doing Business’ for 2014 reflects the gloomy business enviornment of the country, India. However, It comes as a mild shock to see us rank (134) even below our traditional rivals as Pakistan, Srilanka, Nepal and Bangladesh.

Key Points

  • India's enviornment is hostile to business firms.
  • We rank 134th in ease of doing business out of 189 economies in the world.
  • Its even 3 places below the 131st rank we had scored in the previous ranking.
  • We are sadly but expectedly well behind all the BRICS nation.

India's Performance

All the countries were assessed over 10 key parameters namely

  • Starting a Business   
  • Dealing with Construction Permits  
  • Getting Electricity  
  • Registering Property  
  • Getting Credit       
  • Protecting Investors       
  • Paying Taxes       
  • Trading Across Borders       
  • Enforcing Contracts       
  • Resolving Insolvency 

Out of the 10 parameters, India improved its position vis-a-vis last year on only two indicators 'dealing with construction permits' and 'paying taxes'. Barring 'Enforcing Contracts' which remained unchanged, we slipped in the ranking on all the rest 7 parameters.

The Road Ahead

  • The survey warrants India to improve in a number of areas to better the business climate, particularly around land acquisition, starting a business, taxation and contract enforcement.

About the Survey

  • The report encourages countries to compete towards establishing more efficient regulation for business.
  • The first Doing Business report, published in 2003, had judged 133 economies across 5 indicator. 
  • This year’s report covers 11 indicator (10 parameters +1 overall ranking) for evaluating 189 economies.
  • The Doing Business project also provides objective measures of business regulations for local firms at the subnational (cities) level.

How it Works

  • It samples domestic small and medium-size companies and measures the regulations applying to them through their life cycle.

Main Objective

  • To provide an objective basis for understanding and improving the regulatory environment for business around the world.

Top 5

  • Singapore: 1st    
  • Hong Kong (China): 2nd    
  • New Zealand: 3rd    
  • United States: 4th    
  • Denmark: 5th

Bottom 5

  • Chad: The worst at 189th
  • Central African Republic: 188th
  • Libya: 187th
  • South Sudan: 186th    
  • Republic of Congo: 185th

BRICS

  • South Africa: 41st
  • Russia: 92nd
  • China: 96th
  • Brazil: 116th
  • India: 134th

The Neighbourhood

  • Sri Lanka: 85th
  • Maldives: 95th
  • Nepal: 105th
  • Pakistan: 110th
  • Bangladesh: 130th
  • Bhutan: 141st
  • Afghanistan: 164th
  • Myanmar: 182nd
Practice Questions
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