India's war on red tape is working, says World Bank

India's war on red tape is working, says World Bank

India's war on red tape is working, says World Bank

Malaysia jumps nine positions to occupy the 15th spot in a World Bank ranking on ease of doing business.

The World Bank's 2019 Doing Business Index (DBI) has reported an improvement in Nigeria's ease of doing business score from 51.52 to 52.89.

The Index ranks 190 countries based on 10 indicators across the life-cycle of a business, from "starting a business" to "resolving insolvency".

"It shows the UAE has best regulatory practices - such as construction permits, registration, trading across borders, getting electricity permits, getting credit and tax payment mechanism etc. - when it comes to doing business". It also improved building quality control by introducing decennial liability and insurance.

In the last two or three years, "all the large emerging markets - such as China, India, Nigeria, South Africa, Indonesia, Russia - have taken on this agenda", according to Sylvia Solf, head of the World Bank Group's Reform Advisory Unit.

Getting Electricity was made cheaper and faster in Delhi with the cost for low voltage connections reduced by more than 30 per cent of the income per capita, while the time needed was reduced to 31 days, from 39 days.

According to the report published Wednesday, Turkey received 74.33 points out of 100, improving 4.34 points since a year ago.

However, compared to a year ago, India saw its ranking dip on various other parameters, such as "registering property", "protecting minority investors", "paying taxes" and "resolving insolvency".

Ministers Arun Jaitley, Suresh Prabhu speak on the ease of doing business rankings in New Delhi, Wednesday.

"While the World Bank has taken governments to task by fostering an enabling environment characterized by efficient business regulations, so must the World Bank exercise responsibility and greater transparency in its methodology".

"It costs 25 percent of the income per capita to start a business in Kenya which is nearly ten times more expensive than in cote d'voire and the process takes 23 days compared to just four days in Rwanda", the report states. India made Paying Taxes easier by merging diverse sales taxes into a single General Sales Tax (GST).

"Two economies that enter the top 20 this year - the United Arab Emirates and Malaysia - have maintained such a reform momentum". This is also due to a notable reduction in time and cost to import and export, in terms of documentary and border compliance.

Rwanda carried out the most reforms in the region in past year, with seven, and moved up to 29th rank globally, the report said.

"Getting credit was also strengthened by improving access to credit information and enhancing the rights of secured creditors in bankruptcy proceedings".

A major highlight of the report was that 32 out of 36 states recorded improvements in their ease of doing business scores, recognising that states are increasingly working towards removing the constraints faced by businesses.

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