It could take India about three years to improve its ranking on World Bank’s Ease of Doing Business list, Onno Ruhl, World Bank’s country director for India has said.
Improving the country’s rank to 50 from the current 142 is one of the prime targets of the Narendra Modi government.
“This is not rocket science, the department of industrial policy and promotion (DIPP) is working on this and we have a team that is helping and working with the government on this area,” Ruhl told HT.
Ruhl said the government must continue with the reform process and efforts such as cutting red tape and promoting online registrations. Once the rating improves, investor sentiment automatically rises, he said.
Finance minister Arun Jaitley has said the government has taken several steps, such as reducing the number of documents needed for foreign trade, and online application to obtain environment clearance, to ease doing business in India.
Ruhl said countries such as Rwanda, Russia and Georgia, after taking several such measures, have improved their ranking within three years.
Ruhl said if doing business becomes easier, it would naturally boost the “Make in India” initiative that seeks to promote India as an investment hub.
The Centre is also roping in states to participate in remedial measures to ease doing business.
For instance, it has asked states to prepare their own report cards much like the economic survey to provide clarity on local policies, issues, strengths and hurdles.
This would provide investors a clear picture of the economic affairs and policies of different states and help their decision-making.