Ruling out any controversy over India’s ranking on the World Bank’s ‘Doing Business’ survey, its country director, India, Onno Ruhl said the methodology change happens almost every year and the position should be considered as 12 notches up.
The controversy occurred after the World Bank late on Tuesday released its latest ease of doing business report in Washington, which used a new methodology, showing India has moved up only four spots, from 134 last year to 130 this year.
However, Ruhl said that India’s performance based on last year’s methodology was 142 and this year it has moved up to 130. “No matter how you look at it, India has registered a significant shift in trend after several years of decline,” said Ruhl, adding, the ranking will improve further next year.
The upward movement was a significant move as India took initiatives in amending the Companies Act and made it easier for the small and medium enterprises to obtain electricity connection and to do business in the country, which actually helped the country improve its rankings, he added.
The target of reaching rank 50 in the next 3-4 years is doable considering the initiatives India is taking, he said. “The target is doable, but a lot of work needs to be done to get there”, Ruhl added citing examples of countries such as Russia, Rwanda, which have reached to above 50 levels from sub 100 levels in 3-4 years.
Ruhl said that construction permits issuance and enforcement of contracts are two parameters where India needs to lay emphasis on. He also lauded the government for initiatives over bankruptcy law, which he said the organisation is expecting to get cleared in the winter session of Parliament.
He said that the proposed Goods and Services Tax (GST) law is the most important reform towards creating a single market in India and if it is implemented by April 2016, its impact will be visible by 2018.