On June 11, 2015, At Gujarat Vibrant summit Modi promised to make India the easiest destination to do business. After 2 years, the World Bank ease of doing business report is out and the BJP government can’t stop themselves from hailing for this improvement of India in the rankings. In the report, India Jumped to 100th rank from 13oth (last year) out of 190 countries. This report signifying that India is turning to be a better place for the startups and Business Companies. But, the truth is far from it. World Bank ranked this ranking on the basis of 11 indicators: 1. Getting Electricity, 2. Dealing with Construction permits, 3. Trading access borders, 4. Paying Taxes, 5. Protecting Minority investors, 6. Registering Property, 7. Getting credit, 8. Resolving Insolvency, 9. Enforcing contracts, 10. Labor market regularization, 11. Starting a business.
First, this ranking is based on the data accumulated by the 30th June means before the implementation of the GST. Hence, the impact of the GST on this rank is zero. So, Saying India to be a better place for doing business is irrelevant.
Secondly, this ranking is solely based on the data of two cities i.e. Mumbai and Delhi. World Banks on getting electricity, recognized the Tata Power in Delhi to make electricity cheaper to obtain an electricity including the last year’s efforts of Mumbai in improving electricity availability.
Third, most important thing is starting a business is slump merely 2 ranks as the comparison to the 2018 rank that was 158. This factor determines the creation of jobs, but the ranking in this factor is improved miserably. If youth are facing the problem in initiating the business then there will be no point for this improvement in ranking of EODB.
This improvement in ranking is not a guarantee that India is becoming a better place for business starters. There are numerous flaws that need to eradicate within the Indian cumbersome process of starting a business