Ease of Doing Business in India

swatkats

swatkats

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Ease of Doing Business 2019: India has jumped 23 places to secure 77th rank on the World Bank Ease of Doing Business index on the back many business-friendly reforms, with the Goods and Services Tax (GST) and the Insolvency and Bankruptcy Code (IBC) emerging as big winners.

While India has not shown improvement in protecting minorities, the country continues to remain among the top 10 countries.

The World Bank noted that India improved on six of ten parameters as against eight last year, putting it among top ten improvers for the second time in a row. While last year too, India was praised for good accessibility to electricity, this year, the country made a noticeable improvement on ‘Getting Electricity’ parameter.

The annual report — which plays a significant role in giving investment perspective to global investors — noted that the GST helped tax-paying easier, while the IBC improved the lending capacity of banks.

Labour market regulation made by Maharastra got a special mention for changing regulations pertaining to weekly holiday work, overtime hours and paid annual leave, while the slipped on ‘Enforcing Contracts’ and ‘Resolving Insolvency’ parameters as compared with last year.

The World Bank’s Doing Business report assesses 190 economies on ten parameters — starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.

Improvement in parameters by India:
​

Starting a business:

India made starting a business easier by fully integrating multiple application forms into a general incorporation form. India also replaced the value-added tax with the GST (Goods and Services Tax) for which the registration process is faster. These reforms apply to both Delhi and Mumbai. At the same time, Mumbai abolished the practice of site inspections for registering companies under the Shops and Establishments Act.

Dealing with construction permits

India streamlined the process of obtaining a building permit and made it faster and less expensive to obtain a construction permit. It also improved building quality control by introducing decennial liability and insurance.

Getting electricity

The Delhi Electricity Regulatory Commission reduced charges for low voltage connections. Getting electricity was also made easier in Delhi through a reduction in the time for the utility to carry out the external connection works.

Getting credit

India strengthened access to credit by amending its insolvency law. Secured creditors are now given absolute priority over other claims within insolvency proceedings.

Paying taxes

India made paying taxes easier by replacing many indirect taxes with a single indirect tax, the GST, for the entire country. India also made paying taxes less costly by reducing the corporate income tax rate and the employees’ provident funds scheme rate paid by the employer.

Trading across borders

India reduced the time and cost to export and import through various initiatives, including the implementation of electronic sealing of containers, the upgrading of port infrastructure and allowing electronic submission of supporting documents with digital signatures.



https://www.financialexpress.com/ec...hat-put-india-among-top-10-improvers/1368186/
 
A good showing for Modi but will people reward him for it ?

Ease of doing business does not directly translate into more domestic jobs...

narasimha, sm krishna, rajeev & Naidu all got booted out for improving the business environment,
 
Vijay mulled it, nirav mod it & mehul choked it!
& Bjp flopped it in its raj where modi said he ll be making India scam free & corruption free.
Keep dreaming old man.
 
RakaKaKaka said:
Nobody knows the ease of doing business better than the ambani brothers. It has become so damn easy for them now :p:rolleyes: Just setup a company and within few weeks you get contracts worth thousands of crores from government.
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What is the problem ? If i bankroll your political campaign and you win then i expect windfall profits. That's how it works everywhere else in the world.

If ambanis get a project they need to hire people those people will come from India.

You make it sound as if Airtel should have got the contract instead but because of 'corruption' they did not :D

When these foreign leaders come on trips to India they have these company heads with them and they bring plenty of them on the flight over. Who do you think those guys are and why were they brought over.

India needs to do the same with its own businesses, we need to develop a strong world class private sector that can sell to the world.

The point of ease of doing business is to invite the world to do business in India. This has spin off effects for local companies as well. That will take time to become more visible. But there is no doubt that rising up the table is net positive as far as the country is concerned.

See the areas where things have improved, getting construction permits is a big plus for infrastructure. So this has direct bearing on the building industry domestic & foreign.
 
blr_p said:
If ambanis get a project they need to hire people those people will come from India.
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If this was something like roadworks or even hyper trains etc. fine w/e but it's not.
Our country faces a very real threat from China and Pakistan and the gravity of this is lost on these damn politicians.
The primary reason for buying the Rafale was not to shore up squadron strength, that's secondary.
The real reason was now that China has developed and inducted stealth aircraft we need AESA radars en masse.
Right now Su-30 is the only aircraft with that but it only has 60% operational readiness and is actually a strike fighter not an interceptor.
If they must engage in corruption then give him the hyper loop/ spectrum/ roads/ oil/ railways etc. but don't screw with national security.
If China can park multiple SSBNs this side of the Malacca Straits then it's Pakistan that will have a free hand.
If they keep screwing up our defence like this then Kargil and Dokhlam will happen again.

Remember 1971? The US deployed an entire carrier battle group into the Bay of Bengal to enforce a no-fly zone on India at the height of the Bangladesh War of Independence. The entire battle group disengaged when they got pinged by just one Russian SSBN.
Now imagine if Pakistan launches an assault with Chinese SSBNs in range of the entire country?
So again, please understand the gravity of the situation. We can't afford to play around on national security.
 
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Just minor nitpicking but the Su-30 is not a strike fighter ala F15E Strike Eagle but it was purpose built by USSR as an interceptor whose primary role was to have the long range legs to attack the AWACS aircraft of the USAF in case of WWIII. USSR's purpose built strike aircraft are the Su-24 Fencer and the brand new Su-34 Fullback.

BTW China's 5th gen stealth aircraft(J20 and J31) have not even gone into production. But they do have a large no. of Su-27 derived aircraft which is the base for our Su-30 as well.

Our air force needs to be upgraded urgently but the problem is that we are handing over the reins to complete noobs who never have dabbled in an extremely complicated field as military aeronautics.
 
Topic is Ease of doing business:

based on parameters such as

Economics, Policies, local laws, Tax rates & resolving insolvency.

Kindly dont bring nationalism, Congress-BJP or some Ism. Let it be meaningful and educating!
 
Is this taxation news related?
For income tax ‘Judges’, hikes linked to pro-department rulings

The government has linked the appraisals of commissioners of income tax (appeals) to the number of rulings they make in favour of the tax department. This has spooked companies and tax experts who have told the government that this will skew decisions and lead to greater litigation and so-called tax terrorism. The government has rejected the contention. The commissioner of income tax (appeals), or CIT(A), is the first court of appeal in a tax dispute.
Their appraisals will depend on “enhancing the assessment, strengthening the stand of the assessing officer or levying penalty”, according to the Central Action Plan (CAP) of Central Board of Direct Taxes (CBDT) that ET has seen. Commissioners also have to meet annual targets, as per the action plan.
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Let me give you a real life example of the ground reality.
Here in Himachal , to get an electricity connection, it was required to submit an affidavit. This was done away by enforcing EODB policies according to a circular in 2015. This circular is available on the HP Electricity Board's website.
However, ground realities are the same as the local JE still demand an affidavit for providing a new connection. A person seeking a normal domestic connection can fight it out and probably get them to enforce the ruling, but someone looking to start a business prefers to bend in front of the whims of the local officer as that is the only way to get the work done in time and also not to make their future relations sour as these officers are given lots of arbitrary powers which they aren't scared to use.
 
rdst_1 said:
Let me give you a real life example of the ground reality.
Here in Himachal , to get an electricity connection, it was required to submit an affidavit. This was done away by enforcing EODB policies according to a circular in 2015. This circular is available on the HP Electricity Board's website.
However, ground realities are the same as the local JE still demand an affidavit for providing a new connection. A person seeking a normal domestic connection can fight it out and probably get them to enforce the ruling, but someone looking to start a business prefers to bend in front of the whims of the local officer as that is the only way to get the work done in time and also not to make their future relations sour as these officers are given lots of arbitrary powers which they aren't scared to use.
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ok, so removing hurdles has the direct effect of not needing to pay bribes to get work done. This is the intention. All those checks some warranted others not served to create money making opportunities all along the chain. Now, if people opt to continue as if nothing has changed then the result is nil. Some lower down might put obstacles in the way but if the higher ups aren't willing to stand by the new rules then there is no difference. The only way higher ups find out is if bigger concerns flag it. They should. But people are afraid and so things don't change.

I thought you northerners were more aggressive when it comes to things like this. In my city people like to gather around and complain but nobody wants to risk anything.
 
blr_p said:
I thought you northerners were more aggressive when it comes to things like this. In my city people like to gather around and complain but nobody wants to risk anything.
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Like I have already said, if this was a normal domestic connection, I would have definitely made the JE work according to the rules. However, since this is an industrial connection, I cannot take a risk. Currently, this JE's senior officer, the XEN is my relative. Even then I would not prefer to ruffle too many feathers as these officers don't take it too kindly if one tries to assert their dominance over them and can trouble me in the future. He is not going to ask for bribes or cause any other issues with me anyways, so if he is a little adamant about the affidavit then I can breathe a sigh of relief that it is only that.
If not for my relative, I don't know what all problems he could have made for me. Also, this is not true for most people. I have had lovely experiences with many officials as well. It's usually the govt approved contractors who create issues and it is mandatory to get the work checked and approved by them, which they don't do if we don't get the work done from them.
In hindsight, removal of the crook contractors and a modern and fair inspection system would have been a better EODB policy than removal of affidavit, because it is me who is guiding the contractor on how to do his work properly while all he is doing is guiding me through the hurdles of dealing with the govt officials and their whims.
 
rdst_1 said:
Like I have already said, if this was a normal domestic connection, I would have definitely made the JE work according to the rules. However, since this is an industrial connection, I cannot take a risk. Currently, this JE's senior officer, the XEN is my relative. Even then I would not prefer to ruffle too many feathers as these officers don't take it too kindly if one tries to assert their dominance over them and can trouble me in the future. He is not going to ask for bribes or cause any other issues with me anyways, so if he is a little adamant about the affidavit then I can breathe a sigh of relief that it is only that.
If not for my relative, I don't know what all problems he could have made for me. Also, this is not true for most people. I have had lovely experiences with many officials as well. It's usually the govt approved contractors who create issues and it is mandatory to get the work checked and approved by them, which they don't do if we don't get the work done from them.
In hindsight, removal of the crook contractors and a modern and fair inspection system would have been a better EODB policy than removal of affidavit, because it is me who is guiding the contractor on how to do his work properly while all he is doing is guiding me through the hurdles of dealing with the govt officials and their whims.
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What is the purpose of the affidavit ?
 
It's a useless affidavit thay says that I am the owner of the premises etc.
It is useless and that is why it was done away with. And the JE doesn't stand to make anything himself by making me submit it. It is just the unwillingness to change or to take it as a hit on their Ego if corrected by a consumer. I also am a small part of the problem as I don't make these corrections kindly. I am usually already angry because of their incompetence and having asked me for the affidavit in the first place.
 
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