In the market economy, business plays a very immense role as a business is considered to be the power-plant of an economy. It can be said that economies can exist without business but the economy will not be strong enough. The economy would be very primordial as the business would have been trimmed down to buying and selling and would be based upon individuality and there would be an incompetent economy. Thus it can be said that business plays a central role in the market economy. Indian economy has seen a huge growth in the past few years and the credit for this goes fundamentally to the service sector. Annually, the World Bank prepares a report on economies of 190 countries and compares diverse business regulations of these economies. According to the 2019 World Bank’s report India climbed 23 places in the list and stood at 77th place in the World Bank’s Global Ease of Doing Business Rankings and has become the top-ranked country in South Asia and 3rd among BRICKS.
India has shown a marked improvement in getting electricity, dealing with construction permits, starting a business, getting credit, enforcing contracts and trading across borders. India has also featured in the list of top improvers and is the only one country among the nine countries of BRICKS to feature in this list.
For improvement in the sector of ease of doing business, government has made several reforms and relaxed the procedures for setting up companies and industries by commencing integrated electronic applications form. This form can be used for registering an individual, a small firm or a large industry. Moreover, the government has also amended some of the acts and thus pioneered for the development of business and ease of doing it.
The construction sector is an indicator of vigorousness in a country. India’s noticeable improvement in the construction sector is due to the implementation of Single Window Clearance System in Delhi and Online Building Permit Approval System in Mumbai which resulted in the centralization of approval from various agencies.
In the electricity sector, there is an evident improvement in the time lapse for getting a new connection which has improved from 105 days to 55 days. Moreover, the reduced time in complying with import and export regulations by increased use of electronic and mobile platforms has played a gigantic role in improving India’s rank in the 2018 list. Also replacing many indirect taxes with the single indirect tax, the GST has simplified the ways of paying tax in India.
Undoubtedly, India has improved its rank in 6 out of 10 parameters but there is still a further scope of improvement in the sector of enforcing contracts as the diminution of service in this sector makes business challenging. Although India jumped 23 places but “Make in India” plan still remains an unattractive affair. Even though there is a scope of betterment, but still the data comparison shows that India is still considered as the best country to do business in South Asia and the country is on a steady shift towards global standards.
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