PM’s Reform, Perform, Transform mantra works

India has improved its much awaited global ranking on ease of “Doing Business” to 100 ranking out of the 190 ranked by the World Bank for this year. It leapt 30 ranks from 2017’s ranking.

The World Bank’s Doing Business (DB) Report, 2018, assessed 190 economies and covered 10 indicators which span the lifecycle of a business.

India has improved its rank in 6 out of 10 indicators.

The credit for this significant improvement is credited to the mantra of “Reform, Perform, Transform”.

The Prime Minister, Narendra Modi, has provided the political will to carry out comprehensive and complex reforms.

India is the only country in South Asia and BRICS economies to feature among most improved economies of the DB Report this year.

The important highlights of India’s performance are:

1. Resolving Insolvency –
a. Rank improved from 136 to 103
b. Distance to Frontier (DTF) score improved from 32.75 to 40.75
c. Strength of insolvency framework index increased from 6 to 8.5
d. Insolvency & Bankruptcy Code created for efficient handling of restructuring & insolvency proceedings
e. Professional institutes set up for handling restructuring & insolvency proceedings.

2. Paying Taxes –
a. Rank improved from 172 to 119
b. DTF score improved from 46.58 to 66.06
c. Payments reduced from 25 to 13 in a year
d. Time reduced from 241 to 214 hours
e. Total tax rate reduced from 60.6% to 55.3% (% of profit)
f. Post filing index improved from 4.3 to 49.31
g. Enabled electronic registration, return & payment of ESI & EPF contributions.

3. Getting Credit –
a. Rank improved from 44 to 29
b. DTF score improved from 65 to 75
c. Strength of legal rights index improved from 6 to 8
d. Credit bureau coverage increased from 21.4% to 43.5% (% of adults)
e. Increased coverage of security interest registration under SARFAESI Act
f. Secured creditors prioritized over Government dues for purposes of recovery.

4. Enforcing Contracts –
a. Rank improved from 172 to 164
b. DTF score improved from 35.19 to 40.76
c. Cost reduced from 39.6% to 31% (% of claim)
d. Quality of judicial process index improved from 9 to 10.3
e. Dedicated commercial courts established
f. National Judicial Data Grid (NJDG) to monitor and manage court cases.

5. Protecting Minority Investors –
a. Rank improved from 13 to 4
b. DTF score improved from 73.33 to 80
c. Strength of minority investor protection index increased from 7.3 to 8
d. Extent of conflict of interest regulation index increased from 6.7 to 7.3
e. Extent of shareholder governance index increased from 8 to 8.7
f. Greater transparency requirements for interested parties transactions
g. Greater shareholder protection through action against directors & claims for damages.

6. Construction Permits –
a. Rank improved from 185 to 181
b. DTF score improved from 32.83 to 38.80
c. Procedures to obtain construction permits reduced from 35.1 to 30.1
d. Time reduced from 190.0 to 143.9 days
e. Cost reduced from 25.9 per cent to 23.2 per cent of warehouse value.  fii-news.com