India as a country have many factors which can attract new businesses and investors from all around the world. Most of the times, we think about the environment and ease of doing business in India. Being the largest democracy of the world, India offers an excellent business environment and large numbers of potential buyers along with favorable government policies.
Despite years of efforts by Prime Minister Narendra Modi to sweep away exoteric rules and simplify procedures, India remains one of the planet’s toughest places to do business, according to the World Bank. According to the latest “Doing Business” report of top lenders, it is easy for private companies to follow regulations as India comes in 130th place. It may have become easier for Indian businesses to start a business, but their access to credit and ease of paying taxes has worsened, according to the World Bank’s Doing Business Report 2016.
EASE OF DOING BUSINESS IN INDIA
Among the chosen 189 countries in this index, India was ranked 134 in 2015 and 131in the year 2016 on the World Bank’s Doing Business index.
The Government of India has launched an ambitious program of regulatory reform since 2014 aimed at making it easier to do business in India. The program mainly targeted on a great deal of involving in an effort to create a business-friendly environment in the country. There has been a remarkable improvement.
The Ease of Doing Business (EODB) is a ranking system established by the World Bank Group. In the EODB index, ‘higher rankings’ (a lower numerical value) indicate a better and simpler regulations for businesses and stronger protections of property rights. . India now ranks 130 out of 189 countries in the ease of doing business, moving up four places from last year’s adjusted ranking of 134.
The research presents data for 189 economies and aggregates information from 10 areas of business regulation:
- Starting a Business
- Dealing with Construction Permits
- Getting Electricity
- Registering Property
- Getting Credit
- Protecting Minority Investors
- Paying Taxes
- Trading across Borders
- Enforcing Contracts
- Resolving Insolvency
Rankings and weightings on each of the steps mentioned above gives an overall EODB ranking. A high EODB ranking indicates an environment is more favorable for starting of businesses. India improved its position on three counts—starting a business, getting construction permits and accessing electricity.
Top RATING STATES
According to the latest rating in the country, the following states leads the top 5 position
- Gujarat – 71.14%
- Andhra Pradesh – 70.12%
- Jharkhand – 63.09%
- Chhattisgarh – 62.45%
- Madhya Pradesh – 62.00%
- Integrate processes for obtaining PAN, TAN, ESIC& EPFO registration with the incorporation of company.
- Increasing the coverage of Credit Registry and Credit Bureau to register at least 70% of the individuals and firms with information on their borrowing history from the last 5 years.
- Simplification in the forms for filing income tax return, VAT return, CST return, EPFO and ESIC return
- Operationalizing Insolvency and Bankruptcy Code.
- The online portal DIPP is aimed to provide :
- Real time ranking and tracking of the States and UTs based on implementation of the recommendations
- Details of the good practices to learn and replicate
- Provide some more information on current policies and practices across each State and UTs
- In the portal, more than 7000 reforms have been uploaded by States, the validation exercise of which is underway. While the validation exercise is in the final stages, it can be seen from the website that around 10 States have implemented more than 90% of the reforms.
WHAT ARE THE PROBLEMS?
- Customers compare based on prices rather than quality of service.
- People do not care to know about the product. So even if you have some enhanced feature people do not give care for it.
- People fall for marketing easily, especially like offers, discounts etc.
- Customers do not have much loyalty to a particular brand.
- Mostly people stick to the basics. So they do not much care about experience or ambience.
STEPS TO IMPROVE
- One major change can be done is digitalizing the ports. It is because most of our ports are handheld and have manual labour to make the entries. If it is digitalized, it will reduce the time, save on costs and can reduce much of documentations.
- It can also be improved by merging PAN card with a TAN card to make the work much simple.