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Last updated: 03 Nov, 2016  

World.Bank.9.Thmb.jpg Ease of doing business

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Bikky Khosla | 02 Nov, 2016
India has continued to rank low in the World Bank’s ease of doing business Index. The latest report 'Doing Business 2017: Equal Opportunity for All', published last week, places us in the 130th position, which, although represents an improvement of one rank over last year, looks disappointingly low considering the target of 50th rank set by our prime minister for the next year. The World Bank lauds the government for its concerted efforts for improving business environment, but as far as expectations are concerned the report has come as a big dampener.

So, what went wrong? According to the Centre, the ranking does not reflect all the progress India has made recently. The commerce minister has claimed that the efforts and reforms undertaken in the last year have not been adequately captured. Also, some of the steps are taking time to show their effect as India is a vast country. Several industry bodies have viewed in a similar tone. In fact, the World Bank report itself recognizes this fact. Needless to say, these arguments sound logical, but I think the latest ranking still calls for soul-searching on the part of the government.

While there is little doubt that the new government has taken a number of measures to improve ease of doing business, we are still clearly lagging in a number of areas. Labor reform, for example, is an area, which needs urgent attention. The World Bank report clearly points out this challenge. Some other sectors such as agriculture and retail also require attention. Similarly, steps need to be taken to improve efficiency of Indian bureaucracy and judicial system. In addition, I think interests of the MSME sector need to be adequately taken care of as reflected by fall in our position in the report with respect to starting a business.   

Meanwhile, a recent study on exports raises a concern which I have pointed out several times. It says that domestic bottlenecks are more responsible than the global downturn for India's prolonged exports slowdown. While our ministers take no time to blame slow global growth for our export drought, the report says it accounts for only 33 percent of the decline. In contrast, our poor infrastructure and policy bottlenecks are responsible for 50 percent of the decline. So, these findings reflect again the huge gap that still exists in terms of improving our business environment.

I invite your opinions.
 
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Ease of doing business in India
Tony | Fri Nov 18 09:53:42 2016
The reasons given are relevant, no reforms even the mindset of Indian bureaucracy and judiciary are yet to be got off the ground. There is no level playing field for all the players.


Ease of doing business
Shanker Sharma | Sat Nov 5 12:21:58 2016
Yes, Mr. CEO I fully agree to the above contents and unless govt. adopts friendly & encouraging steps to the SMEs besides providing conducive infrastructure, this ranking is not going to be any better in future. Industries pinning great hopes on this new governance.


Ease of doing business.
Umesh Mehta | Sat Nov 5 02:40:44 2016
This issue is the single biggest issue which will decide Namo's reelection prospects. Unfortunately, he is falling short miserably. The biggest reason is that he is asking the culprit ie the bureaucracy, to suggest the cure. They are definitely not going to help him curtail their powers. Namo needs to talk to proven business leaders like M Ambani, Chandrasekhar etc. The simple solution is to eliminate as many powers of the bureaucracy as possible. The bureaucrat should only suggest policy on an issue. He should not have the power to give permissions of any sort. Namo can do this only after he recognizes that the bureaucracy, and no other, is his true enemy


changes to be cosidered for MSME Development.
krishnakumar | Fri Nov 4 17:01:48 2016
Start up a industry required a vast process and time,investment consuming one to complete govt formalities begins from. 1. Choosing of land.( 1- 2 weeks ) 2. Building plan approvel. ( 6-24 months) 3. Constriction and installation of machinery. ( 3 - 6 Months ) 4. Getting Electrical line Service.( 2-4 weeks if required load is available) 5. Man power getting trained and taking final out put ( 3- 6 Months) 6. Clearance from govt Bodies like pollution control board,Fire,Industrial regulation and development authority, Registration of firms, water availability, Corporation dues etc.. and goes on. 7. Financial capability of person play vital role to over come all the hurdles. 8. Further no bank will fund for existing units to develop. 9. Start up are not even considered by bank for funding and get a poor experience from bank persons. 10. Think how a normal persons could over come this issues and start a unit and run. 11. Strict rules to be adopted to lab-ours so that in no way the he cheats the concern in any aspects. 12. If we stop reducing the existing units or industry from shut down. they will play a vital role in employment generation and also tiny Industries can be also developed. 13. Judiciary system also to be developed in a way fast judgements for MSME units so that it will not affect the work flow and shutting down of units.


Ease of Doing Business
Dashrath Patel | Fri Nov 4 10:09:07 2016
As far as small industries are concern they have to give more attention then the core business. All legal compliance should be more simplified. As far as Agriculture sector is concern the Crop Insurance is not reached to reality. There is more risk on the new crop which is not cover under the scheme. crop coverage area need to be widen.


Ease of doing Business
G. Rama Mohanan nair | Thu Nov 3 15:42:28 2016
As a consultant from the feed backs from my clients, the main problems that block the upcoming of our MSMEs are i. Corruption and bureaucracy ii.Reluctance of our Banks to lend money to startups without adequate Collateral security. iii.Flooding of cheap Chinese products.


Ease of doing business
R v subramanian | Thu Nov 3 10:57:51 2016
Of all the problems ,Corruption is the biggest Issue for small business . During Deewali We had people from municipality & govt departments Coming to factories to virtually threatening.


Ease of doing business
Srinivas Patil | Thu Nov 3 05:21:04 2016
For a technology start up company its become difficult find talent to build products which are on par with European and Japanese. Also taxations are huge for a start up grow and sustain.


Ease of Doing Business.
A. P.Ayyappan. | Thu Nov 3 05:03:44 2016
Many traders are not know what are all the Incentives given By govt. It is not available in Commerce Ministry website. Such things to be advised to Public through various medias.


Prolonged slow down of business ease
Sujit Mohanty | Thu Nov 3 04:11:26 2016
We all showing that export is minimum , you see how many Indians are working in a highly responsible position in all sector in abroad why the same is not happening in India. We dont focus on that, we don't have well infrastructure for innovation no scope of growth and good perks for them to work. strategies to be made for bringing the talent back to India, expand more on the innovation skill development, let us develop in-house rather than depending on imports at an high price as value of rupees is very less in other countries. Focus should be how to inculcate the young generation in helping India to move ahead and create more innovation and reduce our cost of production.


Ease of doing business
TRVenkataraman | Thu Nov 3 01:42:27 2016
1.Unless the bureaucrats roll up the sleeves and dirty their hands with hands on approach, we will not make progress. Do secretaries in charge of industries regularly visit industrial estates SOLO and find out for themselves what are the woes of Entrepreneurs ? 2.Revenue augmentation the authorities think is think is their main objective. This mind set must go and must think in terms of employment generation as their prime responsibility. 3.State Governments compete with Realtors and keep on increasing the price of land in industrial estates.How can an young entrepreneur afford high cost of land which is not a productive asset? Include the cost of land in the project cost and reimburse it to the entrepreneur for free once production is started and employment is generated.Include a condition the land can not be sold for 10 years or more


Proactive change
Rob lane | Wed Nov 2 17:24:24 2016
There needs to be most sites set up to allow vendors to sell direct to the rest of the world. Such as Wish.com and Alibaba these primarily sell Chinese goods direct to the rest of the world.


 
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