The Department of Industrial Policy and Promotion (DIPP) of India is all set to host a team from World Bank next week. The officials are visiting the Indian sub-continent as a part of their yearly ritual of ranking the countries of the world on their ease of doing business, from ranks 1 to 189.
The World Bank determines a country’s ease of doing business ranking on the basis of 10 main parameters that assess the country in areas such as ease of starting a business, getting electricity, construction permits and carrying out trade across borders.
In order to make sure that the World Bank gets a clear vision of India’s commitment to the ease of doing business initiative, the DIPP will be treating the World Bank team with a detailed presentation of initiatives and efforts made by both the central and state governments of the country during the period of last one year.
In addition to the meeting with the DIPP officials, the World Bank team will most probably be also having one-on-one interaction with various stakeholders in order to understand the real impact that the steps taken by the governments have had on them.
The DIPP is quite positive about India improving its ranking this year on the ease of doing business list. They believe that the initiatives taken by both the central and state governments have had fruitful results and will surely reflect in this year’s ranking.
The various measures taken by the central and state governments includes eradicating the environment clearance for 36 white industries; introduction of online registration of VAT with real-time Tax Identification Number and increasing the validity of environment clearance from five to 7 years.
According to DIPP insiders, this time, the officials at DIPP are expecting a significant improvement from the 130th position that India earned in Doing Business Report 2016. But, locking a ranking with two digit figures might have to wait till next year.
The Modi government has time and again focused on the importance of improving the ease of doing business in the country. Modi’s ‘Make in India’ initiative forms an important pillar in this ease of doing business factor.
Improving ones ranking on the ease of doing business list means the country is working towards making its land a more investor friendly terrain and is easing up its regulatory environment for both foreign and domestic firms. A higher ranking on the list helps in attracting more investments to the country.
Whether DIPP claims of a significant improvement in India’s ease of doing business ranking comes true or not, is something which we will have to wait and watch.