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India to improve ease of doing biz too: FM
Citing the massive improvement in the World Economic Forum’s Global Competitiveness Index, finance minister Arun Jaitley said on Wednesday that India’s position in the World Bank’s Ease of Doing Business would also show significant improvement.
Citing the massive improvement in the World Economic Forum’s Global Competitiveness Index, finance minister Arun Jaitley said on Wednesday that India’s position in the World Bank’s Ease of Doing Business would also show significant improvement.
The Global Competitiveness Index, released on Tuesday, showed that India has climbed 16 notches to the 39th rank. Among BRICS economies, only China is ahead of India at 28th position. In 2014-15, India’s rank on the same index was 71.
“This reflects a significant improvement in India’s competitiveness as an economy…. This momentum where we moved from 71 to 39 in the last two years will continue,” Jaitley said while briefing the media.
In the Ease of Doing Business report, India currently ranks 130 among 189 countries.Ja it ley said rating agencies have their own procedures. “We hope they take all this into account,” he said.
The competitiveness rankings are based on country-level data covering 12 categories that include institutions, infrastructure, macroeconomic environment, health and primary education, financial market development, technological readiness, market size, business sophistication and innovation.
This year, 138 economies have been assessed for competitiveness; the 2015-16 rankings had covered 140 economies.
The report pointed out that a few areas such as education and healthcare need improvement. Once the goods and services tax is implemented, it is expected that the ranking will get further boost.
Replying to a question, Jaitley said that both competitiveness and ease of doing business are relevant. “You can’t afford laxity in either,” he said.
Shaktikanta Das, secretary, department of economic affairs, who was also present at the press conference, said investor protection is an area of strength. “Gross national savings is also a bright spot,” he said.
Improved monetary and fiscal policies as well as lower oil prices have helped the Indian economy stabilise, the WEF report said.
