India was ranked 142nd in the World Bank’s ‘ease of doing business’ ranking in 2014, when the Narendra Modi government took office. It improved to 130 last year, and this year, India has jumped 30 places to achieve the 100th rank. As Indians, we all should be proud about having achieved this significant shift, which rides on the back of reforms in taxation, construction permits, investor protection and bankruptcy resolution. The positive impact of this was seen in the government statement, which spoke about continuing reforms which would will help India break into top 50 in coming years. This implies a huge challenge for all of us – for the government to keep up the momentum of reforms and for business organizations to work within the new regulatory regime. The challenge also lies in ensuring not just the execution with positive intention but also the clear direction by the Prime Minister and the Government.
While reforms are a result of policies adopted since 2003, it is the aspect of execution, which happened in past four years, which show positive intentions of the Narendra Modi lead NDA Government. These have helped enhance India’s image in the world of Global Business, has brought about a change in perception. We have witnessed enhanced FDI flow, which reflects positive change as regards the perception about ‘ease of doing business’ in India.
India’s demographic variation has been a big asset contributing to the nation’s growth cycle in form of multiple markets, multiple consumption, multiple demand which in turn, has attracted foreign players to cater each and every segment. In sync with this, the Indian economic growth cycle is all set to embark on a new journey, with the “Reboot India” wave – focus on digitization, boost to infrastructure, the ambitious goal of ‘Housing for All by 2022’, recapitalization of banks, reduced number of as also easier and quicker clearances – these are major contributors to economic reforms, and enhance the aspect of ‘ease of doing business’.
India is the only large country this year, in the World Bank’s ‘ease of doing business’ ranking, to have achieved such a significant shift, from 130 to 100. If there is a positive impact, there also has to be a word of appreciation for the stable government as also all the reform policies introduced. Prime Minister Narendra Modi reacted by saying the Indian Government is determined to further improve the rankings and scale greater economic growth with the Mantra of ‘reform, perform and transform’. We hope India continues to move upwards in the rankings – and achieves the target of moving upwards to top-50 ranking.
~ Dr. Niranjan Hiranandani is Founder & CMD, Hiranandani Group. His recent initiative is Hiranandani Communities. He is also President, National Real Estate Development Council (NATION), which works under the aegis of Ministry of Housing & Urban Poverty Alleviation, Government of India.