According to a report by The World Bank and the International Finance Corporation, India is ranked 134 out of 175 countries on its business environment. It ranks 41 places after China.
We are worse than Bangladesh which is the third easiest country to do business with in South Asia.
Even among eight south Asian countries, India ranks sixth in the category of “ease of doing business” – ahead only of Bhutan and Afghanistan – extremely shameful !
If we are to compete with China as a global player, we need to figure out ways to improve attracting foreign investment and keeping them here.
The Indian middle-class is obviously a huge growing market, so every big company is trying to establish itself in India but if it continues to be hard for the business environment, companies are soon going to give up.
Even though India is the top reformer in South Asia and has implemented reforms to simplify business registration, cross-border trade, and payment of taxes, as well as easing access to credit and strengthening investor protection in the last couple of years, it hasn’t helped much to improve India’s rankings in terms of ease of doing business – we have just moved up 4 places since the last year and have a long way to go
Hopefully, the Indian government continues to maintain its pace of reforms especially with regard to labour laws and decreasing the processing time at courts.
The good thing is we can only go up from here ! 🙂