India languishes at 134th place in 'Ease of Doing Business’ ranking 2014
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.
- 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.
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.
- To provide an objective basis for understanding and improving the regulatory environment for business around the world.
- Singapore: 1st
- Hong Kong (China): 2nd
- New Zealand: 3rd
- United States: 4th
- Denmark: 5th
- Chad: The worst at 189th
- Central African Republic: 188th
- Libya: 187th
- South Sudan: 186th
- Republic of Congo: 185th
- South Africa: 41st
- Russia: 92nd
- China: 96th
- Brazil: 116th
- India: 134th
- Sri Lanka: 85th
- Maldives: 95th
- Nepal: 105th
- Pakistan: 110th
- Bangladesh: 130th
- Bhutan: 141st
- Afghanistan: 164th
- Myanmar: 182nd