PM comes down on Congress for questioning World Bank ranking
TIT FOR TAT: Congress says ease of doing business is only for creamy layer of businesses
NEW DELHI: Prime Minister Narendra Modi on Saturday attacked Congress for questioning the World Bank Report on ease of doing business in India and said with GST and other reforms, its report next year would show further improvement in ranking.
The Prime Minister said those who had worked with the World Bank previously were now raising doubts over India’s ranking.
“Some people do not understand the impact of India’s ranking going up from 142 to 100, they are not bothered by it. After coming up 42 positions from 142, I don’t feel like sleeping,” he said while addressing ‘India’s Business Reforms’ event at the Pravasi Bharatiya Kendra here.
Modi also said: “I am a Prime Minister who has never seen the World Bank building even while those who were there (in government) earlier knew the World Bank very well. They are now questioning the World Bank ranking.”
Modi said he did not want to “sleep” over the 30 place jump this year — the biggest leap by India ever, and wants to do more.
The Prime Minister said India would be at an even better place in 2018 ranking since issues raised by traders, businesses on Goods and Services Tax (GST) have been positively accepted by the government.
The ranking took into account reforms initiated only till May-end, he said. It did not reflect the impact of GST, which was implemented from July 1, he added.
The GST has not just integrated the nation of 1.2 billion into one market with one tax rate but also provided a stable and transparent taxation regime, he said.
“This reform plus others that have already happened but need gestation and stabilisation time before they are taken into account by the World Bank, will improve the ranking. All these combined, gives me confidence that India will occupy a place of pride in World Bank’s report in 2018 and the year thereafter,” Modi said.
Modi said India has reached a position from where it is easier to improve further.
“Our efforts have gathered momentum. The World Bank has recognised the tremendous work done by us to improve the ease of doing business. In the short time of three years, we have moved up 42 ranks. India has delivered with the highest improvement in rank in a year,” Modi said on the economy.
Jump in ease of doing business ranking is an example of good governance, Modi said.
“Our mantra is ‘reform’, ‘transform’ and ‘perform’”, Modi said.
CONGRESS CRITICISM: The Congress on Saturday slammed Modi for “patting himself in the back” over the World Bank report on India’s ease of doing business, saying it was only for the “creamy layer of businesses” and that the Prime Minister was “not well-informed about its facts”.
The party said that Prime Minister Modi and Finance Minister Arun Jaitley should also hold a press conference on India’s slide in the global hunger index.
“I don’t know whether the Prime Minister is informed about all the facts or not. I don’t think he is aware of the concept of ease of doing business.
“Prior to 2015, there was only one city in every country that was taken into account and that was Mumbai (for the World Bank Report). Now, in 2015, they changed it to two cities. So, Mumbai and Delhi are the two cities for business in India,” said Congress leader Kapil Sibal.
“The businesses don’t take place only in these two cities of the country. The PM has forgotten that there are crores who do small businesses in other cities of the country. Is the PM thinking about them — the informal sector, small traders and factories,” he added.
Sibal said: “He is the Prime Minister of the country and all the business communities, and not just a handful of them. This is called creamy layer of businesses.
“He is not the Prime Minister of the creamy layer of businesses who are located at the top end of the pyramid in Delhi and Mumbai,” he added.
Sibal said the two factors taken into consideration for the report were e-filing, which he said was started by the UPA government, and Insolvency Act which was also conceived by the Congress-led UPA.
“Now the World Bank does not consider the impact of all this. So, I do not know why the Prime Minister is patting himself on the back. Does he realise that our Health Index has gone down from 87 to 108. Why does not he (Modi) or Finance Minister (Arun Jaitley) do a press conference on that?” Sibal asked.
“The global Hunger Index in India is worse than most countries of the world. Why does the Finance Minister not do a press conference on that?” he asked.