India's Report Card: Top Business Reforms 2017

India's Report Card: Top Business Reforms 2017

"Reform, Perform and Transform is Our Mantra" said India's Prime Minister Mr. Narendra Modi

Talking about current rankings as reported by World Bank's Doing Business Report, India stands at 100th rank (previous ranking 130) overall, at 103rd rank (previous ranking 136) for resolving Insolvency, at 119th rank (previous ranking 172) for paying taxes, at 4th rank (previous ranking 13) for protecting minority interest and at 29th rank (previous ranking 44) for getting credit. The improvement in the rankings deserve much applause.

It was mainly possible due to following reforms done by the India Government under leadership of Mr. Narendra Modi:

• Payment of ESIC and EPFO contributions made fully online
• GST rolled out on 1st July'17
• Corporate Tax Rate reduced to 25% (from 30% for companies with turnover of upto INR 50 cr.)
• Greater transparency requirements for interested parties transactions
• Greater shareholder protection through constitution of National Company Law Tribunal (NCLT)
• Fast track resolution of commercial disputes
• Doing away with requirement of company seal and minimum paid up capital while starting a business
• Single Window Interface for Facilitating Trade (SWIFT) implemented integrating 6 departments which made cross border trade easier
• Insolvency and Bankruptcy Code introduced of international standards
• Important decision making roles assigned to creditors in restructuring of insolvent companies
• Secured creditors are given priority over government dues for recovery
• Time taken for new electricity connections reduced from 106 days to 46 days
• 90% reduction in cost of water and sewer connection in national capital (Delhi)

While there are many more reforms in place targeting ease of business doing (& better rankings next year), a simultaneous focus is on attracting more foreign investments and targeting better employment opportunities for a better India.

Source: ET