Doing business in india Report- World Bank SurveyPresentation Transcript
Doing Business in India and Comparison with China and ASEAN Group 4
Doing Business Report
World Bank Study started in 2004.
Purpose of the report.
Covered 183 Nations in 2011
Benchmark product – Global acceptance.
Influence Policy makers world wide.
Importance for developing Countries.
Doing Business Report - Parameters Starting/ Closing Business Trading across borders Credit and Investment Property and Construction Taxes Contracts
Ease of Doing Business – Global Trends
Ease of Doing Business – Global Rank.
5 year Measure of cumulative change
Doing Business Report - Parameters Starting Business Trading across borders Credit and Investment Property and Construction Taxes Contracts
Setting up a limited liability company in the economy.
Importance and example of Egypt and Malaysia.
1. No. of Procedures 2. Time to complete 3. Cost as % of per capita 4. Min. Paid up Capital
Case of S Asia and India
Starting Business – Global ranking
Starting Business – Comparison
In Developing Economies:
Compiling with building regulations is so costly in time & money, that many builders opt out.
Builders either: Pay Bribes to pass inspections, OR Build illegally that leads to hazardous construction
Formal property transfer is too complicated & costly
Steps involved in Property transfer:
To Purchase a property from another business.
Transfers the property title to the buyer’s name.
In the past 6 years,105 economies undertook 146 reforms to make the property transfer easy.
Time to transfer fell by 38%
Cost of transfer by 10%
Starting Business – India Vs S Asia
Paying Taxes Taxes are essential to provide public amenities, infrastructure and services which are important for the proper functioning of an economy. Doing business data shows that where it is more difficult and costly to pay taxes have larger shares of informal sector activity. More than 60% of economies have reformed in the last 6 years and are starting to see concrete results e.g. Columbia, Mauritius
What do the Paying Taxes indicators measure?
Benchmarking paying taxes regulations
India Vs China and ASEAN Source : http://www.doingbusiness.org/rankings
Trading Across Borders Making trade easier between countries is increasingly important for business in today’s globalized world. Excessive document requirements, burdensome customs procedures, inefficient port operations and poor infrastructure lead to extra costs and delays for exporters and importers. On the other hand, tools such as electronic data interchange systems, risk-based inspections and single windows help improve an economy’s trading environment. E.g. Georgia and Korea
What do the Trading Across Borders indicators measure?
Benchmarking Trading Across Borders Regulations
India Vs. China and ASEAN Source : http://www.doingbusiness.org/rankings
Historical Data cont…
Ranking of India in Getting credit –compared to good practice and selected Economies
Getting Credit Sub indicators in India Over the Past 4 Years
Ranking of India in Protecting investors –compared to good practice and selected Economies
The Following Graph illustrates the protecting investors index in India compared to best practice and selected economies
Enforcing Contracts in India One of the key concerns of foreign investors to enter India. Excessive political control and regulations. Business climate varies between india’s 30 states. Anti – industry movements have thwarted many foreign investments.
Reality Figures It takes almost 46 legal proceedings to be carried out in a payment dispute. Average time taken is 1420 days. Costs the company almost 40% of the claim. Results into bribery and scams. Restricts companies to bring new product,service or innovation.
Closing of Business
Closing of Business- Global Ranks
Closing of Business India Vs S Asia
Changing Policies and Regulations to be more investor friendly
Focus on production with efficiency.
Responsibility from Bureaucratic to Professionals.
Political and Social consensus on Foreign Investments.