Jumping Steps: Continuity of Reforms bore fruit for India
By Shashwati Ghosh, Senior Fellow and Executive Vice President, YES Global Institute & YES BANK; Stefano Colombu, Fellow and Associate Vice President, YES Global Institute & YES BANK
It is easier to do business in India today! According to The World Bank’s ‘Doing Business 2018: Reforming to Create Jobs’ report, India improved its position in the world ranking moving from the 130th to the 100th position.
As we follow the Reform, Perform & Transform ethos of the leadership, it is important to note that the rankings improved inspite of India’s dwindling GDP growth. The underlying message is very important—the world needs to see a continuous effort with concrete targets rather than instantaneous impact. It is the stability in the reforms that matter rather than immediate results. Result will follow if mindshare changes over time.
India has progressed in eight out of ten business indicators, with significant improvements in paying taxes, getting credit and resolving insolvency. Also, it is now among the top 30 nations for getting electricity, securing credit and protecting minority investors.
The chart below shows how there is still room for improvement, especially in key areas where the country still lags behind, such as: real estate, take off on business and enforcing contracts.
Source: World Bank
The construction of the insolvency architecture, a legal framework for improving tax payments and increased public offices digitization has been the primary drivers for the improvement in the ranking. While a successful implementation of the GST could ensure that India moves further up the ranks, the implementation of social policies that are currently under consideration will strengthen India’s position. Steps like overhauling of skilling and higher education practices, security and safety, universal health coverage will remain fundamental criteria for Reforming to Create Jobs.