Focus on bringing India among top 50 nations in ease of doing business in 2018-19, PMO tells officers

India is likely to miss its target of breaking into the top 100 in the World Bank’s Ease of Doing Business report due for release on October 31. It is currently ranked at 130 on the global index.

Highly-placed sources said that India’s overall position may rise up to about 120, while its rank in “dealing with construction permits” parameter is likely to rise to about 140, against last year’s rank of 185 in the 190 countries evaluated.

The Centre had been aiming for a 40-point jump in the World Bank’s Ease of Doing Business rankings this year, which covers only reforms undertaken in Delhi and Mumbai. A document prepared by the government states that India is aiming to reach the 90 th spot in 2017-18 and 30 by 2020.

The Prime Minister’s Office met with top government officials on Friday, where it was stressed that all efforts should now focus on improving India’s rank for 2018-19 to take into the top 50 bracket.

Department of Industrial Policy and Promotion (DIPP) sources said several reforms have been made to improve India’s ranking in the index.

For instance, in Delhi, the procedures for a construction permit have dropped to eight from 29, while the time taken for construction projects-related approvals has reduced to 60 days from 213. In Mumbai, a construction permit now needs 8 steps instead of 42 while the time for construction projects’ approvals has reduced to 60 days from 164.

However, bringing down cost of construction is a challenge, a senior official admitted.

Besides the DIPP and ministry of housing and urban affairs and municipal corporations of Delhi and Mumbai, several central ministries and departments have been working on pushing India’s rank higher in the World Bank report.

However, bringing down cost of construction is a challenge, a senior official admitted.

Parameters for judging the performances of a country included getting electricity, paying taxes, trading across borders and enforcing contracts, starting a business, registering property, resolving insolvency, giving construction permits, getting credit and protecting minority investors.

Aside the DIPP and ministry of housing and urban affairs and municipal corporations of Delhi and Mumbai, several central ministries and departments have been working on pushing India’s rank higher in the World Bank report.

While the Income-Tax Department collaborated with the ministry of corporate affairs to issue a Permanent Account Number and a Tax Deduction Account Number in a day to make India more conducive to doing business, the Insolvency & Bankruptcy Code, 2016, is likely to further the cause.
 
In August, a survey of enterprises on ease of doing business conducted by Niti Aayog and Mumbai-based IDFC institute in states barring Arunachal Pradesh, Mizoram, Andaman & Nicobar and Lakshadweep, stated that it takes 118 days on an average to set up a business in India.
 
This was in contrast with the 2016 World Bank report which stated that it takes only 26 days to set up a business in India.