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India climbs world Bank's DB Index ranking, but have a long way to go:
India jumped 30 positions to 100th from 130 in the World Bank ranking of Ease of Doing Business Index.
The Prime Minister, Mr Modi, in the very first year, wanted to take India to the top 30th place by 2018.
The index rates countries using 10 indicators from starting a business to resolving insolvency. These indicators are then used to rank each country based on the ease of doing business there.
The ranking acts as an inspiration to some governments to make reforms. Whether the reforms are transformed into action, the Index does not measure and it sends confusing messages to others. Countries get credit for passing laws, even if they haven't been widely implemented yet.
When the latest ranking was released, India introduced new regulations to expedite the settlement of commercial disputes. This was done to improve on the country's 130th place in the DB Index. This has hit a road block due to the affected parties approaching the courts for redress.
In the last 12 months, Modi's government carried out two huge reforms. The first, a cash ban that replaced India's highest denomination notes; the second, a national tax system that replaced more than a dozen state and central taxes.
Following the changes, India's growth slowed to 5.7% in the first half of 2017, its weakest rate in three years. India's central bank has slashed its growth forecast for the current fiscal year to 6.7% from 7.3%.
And researchers estimate that the economy lost two million jobs between January and August this year (CNN).
The index rates countries using 10 indicators from starting a business to resolving insolvency. These indicators are then used to rank each country based on the ease of doing business there.
The ranking acts as an inspiration to some governments to make reforms. Whether the reforms are transformed into action, the Index does not measure and it sends confusing messages to others. Countries get credit for passing laws, even if they haven't been widely implemented yet.
When the latest ranking was released, India introduced new regulations to expedite the settlement of commercial disputes. This was done to improve on the country's 130th place in the DB Index. This has hit a road block due to the affected parties approaching the courts for redress.
In the last 12 months, Modi's government carried out two huge reforms. The first, a cash ban that replaced India's highest denomination notes; the second, a national tax system that replaced more than a dozen state and central taxes.
Following the changes, India's growth slowed to 5.7% in the first half of 2017, its weakest rate in three years. India's central bank has slashed its growth forecast for the current fiscal year to 6.7% from 7.3%.
And researchers estimate that the economy lost two million jobs between January and August this year (CNN).
Another criticism is that the survey is conducted in only one or two cities per country which is not an adequate representation for a larger country.
A few African countries are ranked in the top 50 on the index, yet their economies are ranked over 100 in terms of GDP per capita.
If the Index is going to reflect the aspirations of the emerging markets, then over a time period conducting business in these markets must be easier than doing so in the developed countries that occupy the top-30 list. How to reconcile this?
Also, over time, the difference in indicators for many countries will be marginal. This will naturally call for more depth in the measurements of these indicators.
A few African countries are ranked in the top 50 on the index, yet their economies are ranked over 100 in terms of GDP per capita.
If the Index is going to reflect the aspirations of the emerging markets, then over a time period conducting business in these markets must be easier than doing so in the developed countries that occupy the top-30 list. How to reconcile this?
Also, over time, the difference in indicators for many countries will be marginal. This will naturally call for more depth in the measurements of these indicators.