Doing Business in India is Worse than Pakistan – Indian Business Regulations are one of the worst in the world
By Manoj Govindassamy on 10 September, 2009, 5:40 pm
We are living in a country where Business Regulations are one of the worst in the world. And, doing business in Pakistan, Namibia, Rwanda, Zambia, Uganda and other 132 countries are far better than India. I am not claiming this. The 2010, ‘Doing Business’ report prepared by World Bank and International Finance Corporation claims so.
World Bank and IFC averages a country’s percentile ranking on 10 topics, made up of a variety of indicators. This includes examining a country’s business environment in terms of starting a business, dealing with construction permit, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business. Then, Economies are ranked on their ease of doing business, from 1 – 183, with first place being the best. A high ranking on the ease of doing business index means the regulatory environment is conducive to the operation of business.
Out of the 10 indices, seems India is relatively better in ‘Getting Credit’ and ‘Protecting Investors’ as she stood at ranks 30 and 41 respectively. And India stood at rank 182 (out of 183 countries) when coming to ‘Enforcing Contracts’. On averaging out all the indices, India stood at Ease of doing Business rank 133 in the ‘Doing Business’ 2010 report.
No wonder, this list is topped by countries like Singapore, New Zealand, Hong Kong, US and UK. All the neighbouring countries of India are placed at better ranks in this list. The point I am amazed about is, even some of the African countries are better ranked in this list. Why is India not able to get to top positions ? We have stable government, talented people, rising economy and many more. The reforms so far done at India all are consumer and end user oriented. Without business reforms, can we attain economic super power status by 2020 ?
Doing Business 2010 report is available here
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