Those who mocked Prime Minister Narendra Modi saying how could a “Chaiwala” lead India, are now hiding their heads in shame after the Ease of Doing Business for this year is out. Yes, India has made a staggering progress in the ranking and has now jumped to 77th position from last year’s 100th position.
We should not forget that when PM Modi had taken charge of India in the year 2014, the Ease of Doing Business ranking of India was 142 but within 4 years PM Modi has brought it down to 77th position. This happened only because of the sound economical policies of the Modi government that focused at nurturing and promoting the entrepreneurs.
We should also note that under the Congress led UPA government India’s ranking in Ease of Doing Business was 116 in the year 2006 and in 2014 it increased to 142. This indicates that Manmohan Singh government had failed in helping the entrepreneurs in India.
Praising GST, the World Bank said “India made starting a business easier by fully integrating multiple application forms into a general incorporation form. India also replaced the value added tax with the GST (Goods and Services Tax) for which the registration process is faster. At the same time, Mumbai abolished the practice of site inspections for registering companies under the Shops and Establishments Act”.
“India made paying taxes easier by replacing many indirect taxes with a single indirect tax, the GST, for the entire country. India also made paying taxes less costly by reducing the corporate income tax rate and the employees’ provident funds scheme rate paid by the employer”, it added praising the tax reforms undertaken by the Modi government.
Hailing the measures taken on improving trading across borders, the report said “India reduced the time and cost to export and import through various initiatives, including the implementation of electronic sealing of containers, the upgrading of port infrastructure and allowing electronic submission of supporting documents with digital signatures”.
If you want to further analyse the finding in the report published by the World Bank, click on this link: Doingbusiness.org