India’s ranking in doing biz should have been higher: FM
NEW DELHI: Acknowledging that there was need to cut down on time taken in permissions which lead to delays, finance minister Arun Jaitley said the World Bank has not factored in all the steps taken by the government to improve business environment, and India’s ranking in the ease of doing business should have been “significantly higher”.
“The World Bank has upped India’s ranking in the Ease of Doing Business by twelve positions. Last month the World Economic Forum had similarly upgraded India. Even though the push up numerically is modest, it marks the reversal of an adverse trend,” Jaitley said in a Facebook post titled ‘The Ease of Doing Business’. “Considering the number of steps taken in the last 17 months, India’s position should have moved significantly higher. I understand that all steps have not been factored in since the World Bank criteria has a cut-off date and it also waits for announcements to translate into action before they can be factored.”
“We need to cut down on the number of permissions required so that the time lag between the decision to invest and the actual investment can be shortened significantly,” he added. “States must realise that local laws which enable availability of land, environmental permissions, sanction of building plans need a relook.”
Stating that India is currently aspiring to grow faster at a time when the world is moving slowly, the finance minister said: “To add a percentage or two in our present growth rate, the ease of doing business coupled with a simpler direct and indirect taxation system, a higher investment in infrastructure and irrigation will play a significant role. A low oil and commodity regime is helping us in this direction.”
Last week, the World Bank came out with its Doing Business survey for 2016 where it ranked India at 130 out of 189 countries on ease of doing business, up 12 places from 142 last year (134 according to a new formula, which makes it 4 places).
Jaitley attributed the jump in India’s ranking to quicker decision making and faster policy changes, among others.