Worldwide, 128 economies introduced substantial regulatory improvements making it easier to do business in all areas. The BRIC economies—Brazil, the Russian Federation, India and China—introduced a total of 21 reforms, with getting electricity and trading across borders the most common areas of improvement.
China outpaced India in undertaking reforms to make starting of business hassle-free; according to a report published by the World Bank on global Ease of Doing Business (EoDB) rankings on Wednesday. As per the report, China jumped 32 positions with an EoDB score change of +8.64 while India’s EoDB score improved by +6.63 and ranked at 77 with a jump of 23 positions from last year’s ranking. China’s overall rank is 46.
“The economies with the most notable improvement in Doing Business 2019 are Afghanistan, Djibouti, China, Azerbaijan, India, Togo, Kenya, Côte d’Ivoire, Turkey and Rwanda,” the report that captured a record 314 regulatory reforms between June 2, 2017, and May 1, 2018 points out.
Ease of Doing Business 2019 measures the processes for business incorporation, getting a building permit, obtaining an electricity connection, transferring property, getting access to credit, protecting minority investors, paying taxes, engaging in international trade, enforcing contracts and resolving insolvency.
The two economies with the largest population, China and India, demonstrated impressive reform agendas.
“Both governments (India and China) took a carefully designed approach to reform, aiming to improve the business regulatory environment over the course of several years. China is the only economy from East Asia and the Pacific to join the Doing Business 2019 list of 10 top improvers,” the report adds.
Under its National Trade Facilitation Action Plan 2017-2020, India implemented several initiatives that improved the efficiency of cross-border trade, reducing border and documentary compliance time for both exports and Imports.
”India’s strong reform agenda to improve the business climate for small and medium enterprises is bearing fruit. It is also reflected in the government’s strong commitment to broaden the business reforms agenda at the state and now even at the district level,” Junaid Ahmad, World Bank Country Director in India said.
Nevertheless, India still lags in areas such as enforcing contracts (ranked 163 globally) and getting any property registered with the authority (166). It takes 69 days and costs about 8 percent of the property value to register a property, compared to 20 days and 4.2 % among high-income economies. Despite claiming that the government liberalized the rules to resolve corporate disputes, the report points out that it takes at least 1445 days for a company to resolve a commercial dispute through a local first-instance court in India, almost 3 times more than the 582 days needed in high-income economies.