Budget 2019: What Modi government needs to do to improve India's ease of doing business rank

Budget 2019: Last year came as a major boost for India's ease of doing business rank and if any new policy is announced in this year's budget, it can further impact the ranking. Ranjit Punja, CEO and Co-Founder CreditMantri, believes that India still ranks very low in terms of starting business, enforcing contracts, registering property, and resolving insolvency. He said that new policies can help improve these parameters and achieve the targets. 

"India still ranks low in terms of starting business, enforcing contracts, registering property, and resolving insolvency. If appropriate policies are established, the above parameters could be improved, and the target can be achieved. The Government has recently launched ‘Make in India 2.0’ which will focus on driving business growth and generate job opportunities," Punja said. 

"Starting new businesses would still require certain reforms in business registration, property registration and trading across borders. If the procedure duration is further reduced, it will pave way for ease of doing business in India," he added.

In last year's budget, the government had listed out 372 basic business reform actions to further improve ease of doing business in India. "There was a significant reduction in terms of procedures which enhanced credit availability, ease of paying taxes, trading across borders, etc," Punja said. 

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India has been making a remarkable growth in ease of doing business rank. In 2018, the country jumped 23 spots and stood at 77th position among 190 economies in terms of ease of doing business. Earlier in 2017, India's ranking on the Ease of Doing Business rose 30 spots to stand at 100th position for the first time ever. 

Recently on January 04, 2019, the Lok Sabha to improve ease of doing business, passed the Companies (Amendment) Bill, 2018, which is designed to reduce the National Company Law Tribunal`s (NCLT) burden in volume of insolvency cases, as well as prescribe strong action against non-compliant companies.

The Government is now aiming to be among the top 50 countries and plans to take appropriate steps to meet this goal.