HTML clipboard NEW DELHI: India remained consistent in carrying out economic reforms but slipped a notch to 133rd rank among 188 countries in the ease of doing
business arena as other nations reformed their business environment in more ways, the World Bank and the International Finance Corporation's annual Doing Business Report 2010 has said.
The report collected data from 19 cities including Mumbai, Ludhiana, Hyderabad, Bhubaneswar and Kochi. The one area where India took reform initiatives in the year up to June 2009 is in handling bankruptcy by appointing more judges in courts handling payment defaults, said the report.
"India is a consistent reformer for the past many years. A country's rank in the index is an average of 10 indicators, each with 10% weight in the index. India increased the number of judges in the specialised debt recovery tribunals, that led to a major removal of blockages. While India reformed in the area of insolvency, other countries reformed in more than one area," World Bank's senior strategy advisor Dahlia Khalifa told ET explaining why India was overtaken by other nations in the year despite its commitment to reform.
In the meanwhile, the World Economic Forum's latest Global Competitiveness Report for 2009-2010, based on a different set of indicators, showed India moving up one position to 49th.
The Doing Business 2010 report examined business environment in terms of starting a business, dealing with construction permit, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business.
More judges were assigned to the specialised debt recovery tribunals, enabling them to pick up the pace of resolving foreclosures. And the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002—has made it easier for courts to handle foreclosure procedures, said the report.
Ms Khalifa said India also took serious steps such as establishing inter-ministerial panels to work with a wide range of state governments towards making the environment friendlier for businesses. The report also highlighted India's progress in the area of electronic registration of companies, which reduced costs.
For India, improving administrative efficiency and making it easier to get a construction permit are key areas where further reform measures are needed, said Ms Khalifa. "In the area of investor protection, India ranks 41st among 183 nations, while it stands at 30th in access to credit. While India can be a role model for many other nations in these aspects, it can get inspired from them in other areas," she said.
In the ease of dealing with construction contracts, India stands at 175th position among 183rd, compared to China and Hong Kong, the easiest countries in this respect. The report also highlighted the progress made by Maharashtra in reducing property transaction cost, which did not affect its revenues.
