Starting a business in India has become easier, but it still takes more 29 days and more than 12 procedures to launch a new venture in the country, says World Bank.
And, from last year position, in terms of starting a business, India has improved from 164th rank to 155th.
With the remarkable development, India, among 189 economies in the World Bank’s ‘Doing Business 2016’ report, has been marked at 130th position.
“India made starting a business easier by eliminating the minimum capital requirement and the need to obtain a certificate to commence business operations. This reform applies to both Delhi and Mumbai,” the report said.
The overall ranking of India depends upon 10 factors, starting a business (India’s position 155), to deal with construction permits (India ranks 183), getting electricity (70), registration of property (138), getting credit (42), protecting minority investors (8), paying taxes (157), trading across borders (133), enforcing contracts (178), and resolving insolvency (136).
While India’s position improved from 164 to 155 in terms of starting a business, the country has also improved in dealing with construction permits and in getting electricity.
As per data collected for the report, “Starting a business there requires 12.90 procedures, takes 29 days, costs 13.50 per cent of income per capita and requires paid-in minimum capital of 0 per cent of income per capita.”
India, in respect to dealing with construction permits, has marginally developed from 184 to 183 while in terms of getting electricity the ranking jumped from 99 to 70.
However, India’s ranking has dropped on two fronts i.e getting credit and paying taxes.
In terms of getting credit last year it’s position has dropped from 36 to 42 while in terms of paying taxes it has declined from 156 to 157.
The reports said, the utility in Delhi made the process for getting a power connection simpler and faster, in terms of getting electricity, by eliminating the internal wiring inspection by the Electrical inspectorate.
“The utility in Mumbai reduced the procedures and time required to connect to electricity by improving internal work processes and coordination,” it added.