Ease of doing business index published by World Bank doesn’t capture the ground reality of the business environment in India. Do you agree with this view? Comment (200Words)
Refer- Business Standard
Enrich the answer from other sources, if the question demands.
IAS Parliament 5 years
KEY POINTS
Improvement in the business environment in India
· India’s rank in 2017 is 100, now it has jumped to 77 in 2018 showing the effectiveness of reforms in governance
· Permissions and form submissions of various types have become much easier at centre and state level
· The turnaround time for ships has been drastically reduced thus avoiding the delay in transhipments.
· Improved use of information technology, Ex: Invest India portal.
· Online billings, appointments, the filing of income taxes etc have improved the business environment in India
What the index doesn't capture
· There is no deep understanding of the substantive and qualitative changes to the regulatory framework governing enterprises across different states.
· They do not capture the out-of-the process issues related to the daily running of a business, the various investigations conducted by the revenue department.
· India specific issues like the problem of employability, poor skills, corruption, and controls on internal trade, avenues for accessing capital for small and micro-businesses are not addressed properly.
· Input costs, demand factors and infrastructure issues business are not captured
Thus the index doesn't address the ground reality issues in case of India properly.
