Taking cognizance of India's poor rankings in the World Bank's Ease of Doing Business report, CII and KPMG jointly prepared a report aimed to improving India’s position.
GN Bureau | May 21, 2014
Despite being one of the fastest growing economies in the world, India lags behind in terms of ease of doing business: in the World Bank’s Ease of Doing Business rankings of 2014, India has been ranked 134th out of 184 countries. The rank last year, at 131, was only slightly better. Taking cognizance of this situation, CII and KPMG jointly prepared a report aimed to improving India’s position.
The report identifies key areas for reform which will enable doing business in India, including setting up of business, land acquisition, taxation and contract enforcement.
According to the report, despite two decades of economic reforms, India continues to falter on various sub-indices such as starting a business, dealing with construction permits, getting electricity, registering property, paying taxes, trading across border, enforcing contracts or resolving insolvency. In fact, India ranks lower than all its BRIC counterparts. Therefore, there is an urgency to focus on improving the business environment and arrest the decline in relative performance against various determinants of investment attractiveness.
The report is based on a survey conducted amongst Indian industry followed with extensive primary and secondary research to assess the prevailing business regulatory environment in the country. Key issues highlighted include lack of an effective land acquisition process, unfavorable taxation regime, high cost of starting a business, complicated and time consuming contract enforcement process.
The report can be read below.