Centre may expedite measures to improve biz climate
The impact of GST, expected to be rolled out on April 1, 2017, may not show up in next year’s ranking.business Updated: Oct 27, 2016 11:01 IST
A day after the Ease of Doing business report that was released by the International Finance Corporation ranked India 130th, the Centre is expected to expedite the implementation of unfinished tasks, including the goods and services tax (GST). Last year, India’s rank was 131.
However, the impact of GST, expected to be rolled out on April 1, 2017, may not show up in next year’s ranking.
A senior government official said the issue has been discussed and they will work to plug loopholes. The government is expected to improve its ranking in the ease of doing business this year. The report is based on reform measures and data are available only till June 1.
“The government is determined to take all steps to ensure that the ease of doing business ranking improves ... there is a fair chance that a lot of work on the ground has not been factored in,” said the official, who did not wish to be identified.
He pointed out that a host of reform initiatives, including the implementation of the bankruptcy code will reflect in the next report.
Prime Minister Narendra Modi has been focusing on improving the country’s ranking on the ease of doing business index.
The official also said the government will hold meetings to review the reforms.
Meanwhile, Shailendra Singh, joint secretary, Department of Industrial Policy and Promotion, at an event organised by the Confederation of Indian Industry said, “We are a little surprised … we will continue to undertake structural reforms ... and we hope to get very good result in the next year’s report and improve the overall business environment in the country.”
“Certain reforms such as legislation of the GST, the Insolvency and Bankruptcy Code, and others may not have come within the World Bank’s deadline of June 1 ... I am sure that the rankings will align with the actual simplification and changes on the ground from next year onwards,” said Chandrajit Banerjee, director general, CII.