Survey says doing business in India is tough
India ranks 134 among 183 nations in a survey called “Doing Business 2011″ — that gauges the ease of doing business in a country — and is ranked behind countries like arch rival Pakistan, Bangladesh and Sri Lanka.
Singapore leads the pack, while Hong Kong grabs the second position in the list.
The report investigates the regulations that enhance business activity and those that constrain it.
It takes into account areas like starting a business, dealing with construction permits, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, closing a business, getting electricity and employing workers.
Although India has carried out major economic reforms since liberalising its economy in the early 1990s, many of the reforms are still in the planning stages, and unless it quickens such reforms, doing business in India may remain troublesome.
Corporations have called for reforms such as allowing foreign direct investment into multi-brand retail, but little concrete action has been taken.
According to the study, 14 of the 17 Indian cities covered implemented changes to ease business start-up, construction permitts and property registration between 2006 and 2009.
But the report points out — “The level of change depends not only on the pace of business regulation, reform but also on the starting point.”
India ranks 165 in starting a business, and as low as 177 in dealing with construction permits, according to the report.
India surely has a long way to go, getting rid of red-tape and improving infrastructure before it can celebrate being a world power, especially if it wants to encourage new business leaders.