India has climbed 23 spots on the World Bank’s Ease of Doing Business (EODB) Index in the last two years, and now ranks #77 among 190 global economies. And for the first time ever, it is also the top ranked economy in South Asia. (In 2014, it was ranked sixth.) Among the BRICS nations, India is now placed third. What helped this upward climb was the introduction of GST and the reduction in corporate tax rate.
The World Bank has also listed India among the “top 10 improvers” for the second time in a row. It occupies the fifth spot, while China is at third.
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. This reform applies to both Delhi and Mumbai.
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.
India strengthened access to credit by amending its insolvency law. Secured creditors are now given absolute priority over other claims within insolvency proceedings. This reform applies to both Delhi and Mumbai.
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. This reform applies to both Delhi and Mumbai.
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. This reform applies to both Delhi and Mumbai.
Labor market regulation
India (Mumbai) changed regulations pertaining to weekly holiday work, overtime hours and paid annual leave.