India Hits a Century : Easy Business in India
This year India hits a century in World Bank’s Ease of Doing Business Index. It leapfrogged 30 places and landed on 100th position out of 190 countries. The huge jump is because of major changes in areas such as ‘starting business’, ‘dealing with permits’, and ‘resolving insolvency’. Earlier the rank for each area was 155, 185, and 136 respectively and this year they are 156, 181, and 108. While there isn’t an improvement in the ranks of all the three sectors, the efforts invested in each of these areas are expected to yield long-term benefits.
World Bank has appraised India’s effort for introducing insolvency law, easing tax compliance and introducing administrative measures for it. On the other hand, it has stated that India lags in areas such as ‘starting business’, ‘enforcing contracts’, and ‘dealing with permits’.
The strategy to attain the rank was to improve in two areas- ‘starting a business’ and ‘dealing with construction permits’. In 2014, Narendra Modi assured that India will rank in top 50, post which it became a primary agenda. Considering the constant efforts put into developing these segments, it also seems to be a right time to start businesses. Government is also actively involved in constructing ways to make the loan sanctioning process for businesses easier and quicker.
Ease of Financial Aid
Banks will provide financial assistance to the company for all stages of the business lifecycle. If the bank is satisfied with your business model and projected returns, it will lend business loans to start-ups as well.
Ease of doing Business Front
The government has taken tenets of ease of doing business as its benchmark. It is working actively on bridging the gaps suggested by the World Bank for business ease in the country. The two prime focus areas of government for business ease are ‘contract permits' and ‘starting a business'.
Ease of Starting a Business
In India, banks are one of the largest funders of start-ups and each year they provide loan for the business to several companies. Ludhiana, Hyderabad, and Bhubaneshwar are the easiest cities to start business in. The primary reason for the ease of business in these cities is the growing corporate industry. To quicken the process, India has merged PAN (Permanent Account Number) and TAN (Tax Account Number) application in the online system.
So, this is a perfect time and opportunity for everyone who is starting a new business or wishing to reform their business.