India has slipped to the 133 rank out of 183 economies in the world during 2010 from 131 last year in terms of ease of doing business in the country, according to a World Bank report released on Wednesday.
Despite that the country along with China has featured " among the 40 most- improved economies", which have made significant regulatory changes to make it easier for domestic companies to do business.
The report points out that the position over the previous year has worsened when it comes to starting a business in India as the time taken is much longer and heavier investments are required compared to other countries.
The country has also slipped a bit on parameters such as dealing with construction, taking permits and registering property.
But there has been some improvement over the previous year when it comes to paying taxes, trading across borders and closing a business.
The report also states that India and China over the last five years have gone through regulatory changes at a steady pace to make it easier for domestic companies to do business. Since 2005, India has implemented 18 business regulation reforms in seven areas covered by Doing Business, creating more opportunities for local firms. Many of these reforms focused on technology - implementing electronic business registration, electronic filing for taxes, an electronic collateral registry, and online submission of customs forms and payments.
According to the report, since 2005, business regulation has become more effective for entrepreneurs worldwide, with about 85 per cent of the world's economies making it easier for firms to operate, thanks to 1,511 improvements in business regulations, it adds.
The report titled Doing Business 2011: Making a Difference for Entrepreneurs is the eighth in a series of annual reports published by IFC and the World Bank. " New technology underpins regulatory best practice around the world.
Technology makes compliance easier, less costly, and more transparent," said Dahlia Khalifa, an author of the report.
In the past year, governments in 117 economies carried out 216 regulatory reforms aimed at making it easier to start and operate a business, strengthening transparency and property rights, and improving the efficiency of commercial dispute resolution and bankruptcy procedures.
The report ranks 183 economies on key aspects of business regulation for domestic firms.
Globally, doing business remains easiest in the highincome economies of the Organisation for Economic Co- Operation and Development ( OECD) and most difficult in Sub- Saharan Africa and South Asia. But developing economies are increasingly active. In 2009, 66 per cent reformed business regulation, up from 34 per cent six years earlier.
In the past five years, about 85 per cent of the world's economies have made it easier for local entrepreneurs to operate, through 1,511 improvements to business regulation.
Doing Business 2011 pioneers a new measure showing how much business regulation has changed in 174 economies since 2005. Among the top- 30 mostimproved economies, a third are from Sub- Saharan Africa.
Worldwide, over half the regulatory changes recorded in the past year eased business startup, trade and payment of taxes.
Many of the improvements involve new technologies. " New technology underpins regulatory best practice around the world," said Janamitra Devan, vice- president ( financial and private sector development), World Bank Group.
For the fifth year running, Singapore leads in the ease of doing business, followed by Hong Kong SAR China, New Zealand, the UK, and the US. Among the top- 25 economies, 18 made things even easier over the past year.
" Governments worldwide have been consistently taking steps to empower local entrepreneurs," said Neil Gregory, acting director ( global indicators and analysis), World Bank Group.
" The economies most affected by the financial crisis - especially in Eastern Europe - have been targeting regulatory reforms over the past year to make it easier for small and medium- size enterprises to recover and to create jobs."
Courtesy: Mail Today