Business environment

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Business environment

  1. 1. by select global bodies
  2. 2. Ranking by ‘ Doing Business Project ’ ( a World Bank Group) <ul><li>http://www.doingbusiness.org/rankings </li></ul><ul><li>The Doing Business Project (World Bank Group ) presents quantitative indicators on the regulatory aspects of BE that can now be compared across 183 economies . </li></ul>
  3. 3. <ul><li>Regulations affecting 10 stages of a business’s life are measured: </li></ul><ul><ul><ul><ul><ul><li>starting a business, </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>dealing with licenses, </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>employing workers, </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>registering property, </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>getting credit, </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>protecting investors, </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>paying taxes, </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>trading across borders, </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>enforcing contracts and </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>closing a business. </li></ul></ul></ul></ul></ul><ul><li>Data in the ‘Doing Business 2011’ report are current as of June 1, 2010 . </li></ul>
  4. 4. Economy Rankings (June 2010) Economy Ease of Doing Business Rank Starting a Business Dealing with Construction Permits Registering Property Getting Credit Protect ing Investors Paying Taxes Trading Across Borders Enforc ing Contracts Closing a Business Singapore 1 4 2 15 6 2 4 1 13 2 Hong Kong 2 6 1 56 2 3 3 2 2 15 New Zealand 3 1 5 3 2 1 26 28 9 16 United Kingdom 4 17 16 22 2 10 16 15 23 7 United States 5 9 27 12 6 5 62 20 8 14                       South Africa 34 75 52 91 2 10 24 149 85 74 China 79 151 181 38 65 93 114 50 15 68 Egypt, Arab Rep. 94 18 154 93 72 74 136 21 143 131 Indonesia 121 155 60 98 116 44 130 47 154 142 Brazil 127 128 112 122 89 74 152 114 98 132 India 134 165 177 94 32 44 164 100 182 134
  5. 5. <ul><li>Now, Sub national Reports brought out by the Doing Business Project are also available in their website which compare the ease of doing business in different parts of a country. </li></ul>
  6. 6. Ease of Doing Business: Comparison of Indian Cities Economy Ease of Doing Business Rank Starting Business Construction Permits Registering Property Paying Taxes Trading Across Borders Enforcing Contract Closing Business Ludhiana 1 7 7 11 1 12 4 2 Hyderabad 2 4 4 9 13 13 1 1 Bhubaneshwar 3 5 8 17 9 1 5 5 Gurgaon 4 9 2 1 7 17 14 6 Ahmedabad 5 14 4 2 11 3 16 4 New Delhi 6 1 4 7 7 14 12 6 Jaipur 7 3 13 3 2 14 7 14 Guwahati 8 13 12 14 6 7 2 12 Ranchi 9 15 9 6 4 8 11 13 Mumbai 10 12 17 5 4 3 17 3 Indore 11 8 13 10 10 11 10 9 Noida 12 6 9 12 2 16 7 16 Bengaluru 13 17 1 4 12 9 15 8 Patna 14 2 9 15 15 10 2 15 Chennai 15 10 3 16 17 2 7 10 Kochi 16 16 15 7 14 5 6 10 Kolkata 17 10 16 13 16 6 13 17
  7. 7. <ul><li>The Doing Business Project ranking information of course do not throw light on many important aspects of BE like the quality of a country’s infrastructure, size and attractiveness of its market, macroeconomic conditions and many others. </li></ul>
  8. 8. <ul><li>Agency : World Bank </li></ul><ul><li>Web site </li></ul><ul><li>http://rru.worldbank.org/BESnapshots/India/default.aspx </li></ul>
  9. 9. By using the information made available by different global bodies, World Bank prepares BE Snapshots to show a country’s relative ranking in the globe in terms of specific BE parameters.
  10. 10. Global Ranking of India’s BE (2010) # Indicator & Agency Rank Scale Trend over past year 2010 2009 2008 2007 2006 1  Business Environment Index      62 62 61 1-10    EIU - Global Outlook Report (82)  (82)  (82)  2  Control of Corruption Indicator   111 103 92 -2.5-2.5    World Bank Group (202)  (201)  (201)  3  Regulatory Quality      107 106 105 -2.5-2.5    World Bank Group (202)  (200)  (200)  4  Country Credit Rating  51 55 58 58 0-100    Institutional Investor (178)  (174)  (174)  (173)  5  Index of Economic Freedom    123 116 119 130 0-100    The Heritage Foundation and the Wall Street Journal (179)  (157)  (157)  (157)  6  Political Risk Rating (ICRG)   80 84 97 88 81 0-100    PRS Group (140)  (140)  (140)  (140)  (140)  7  Doing Business Ranking  134 135       1-183 2     World Bank Group (183)  (183)  8  Quality of National Business Environment Ranking  33 30 1-127 2     World Economic Forum - Global Competitiveness Report (127)  (111) 
  11. 11. <ul><li>World Bank’s BE Snapshots list only seven global rankings. However, rankings are done by some other organisations as listed below: </li></ul>
  12. 12. Organization Indicator A.T. Kearney FDI Confidence Index AccountAbility National Corporate Responsibility Index Business Monitor Online* Business Environment Ranking Fraser Institute Economic Freedom of the World Index IMD* World Competitiveness Index The Kurtzman Group Opacity Index The PRS Group -International Country Risk Guide* Financial Risk Rating The PRS Group -International Country Risk Guide* Economic Risk Rating Transparency International Corruption Perception Index UNCTAD FDI Indices World Economic Forum – Global Competitiveness Report Growth Competitiveness Index World Economic Forum – Global Competitiveness Report Business Competitiveness Index
  13. 13. <ul><li>Agency : weforum </li></ul><ul><li>Web site </li></ul><ul><li>http://www.gcr.weforum.org/ </li></ul><ul><li>Report </li></ul><ul><li>Global Competitiveness Report </li></ul>
  14. 14. <ul><li>The Global Competitiveness Report’s country-rankings are based on the Global Competitiveness Index (GCI), developed for the World Economic Forum by Sala-i-Martin and first introduced in 2004. </li></ul><ul><li>The GCI is based on 12 pillars of competitiveness. </li></ul><ul><li>The pillars are: institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation. </li></ul>
  15. 15. <ul><li>The 2010 report covers 139 economies . </li></ul><ul><li>The survey captures a broad range of factors affecting an economy’s business climate. </li></ul><ul><li>The report also includes comprehensive listings of the main strengths and weaknesses of countries. </li></ul>
  16. 16. Global Competitiveness Index   Rank Score (1–7) GCI 2010–2011 (out of 139) 51 4.3 GCI 2009–2010 (out of 133) 49 4.3 GCI 2008–2009 (out of 134) 50 4.3 Basic requirements 81 4.3 1st pillar : Institutions 58 4 2nd pillar : Infrastructure 86 3.5 3rd pillar : Macroeconomic environment 73 4.5 4th pillar : Health and primary education 104 5.2 Efficiency enhancers 38 4.4 5th pillar: Higher education and training 85 3.9 6th pillar : Goods market efficiency 71 4.1 7th pillar : Labor market efficiency 92 4.2 8th pillar: Financial market development 17 4.9 9th pillar : Technological readiness 86 3.3 10th pillar : Market size 4 6.1 Innovation and sophistication factors 42 4 11th pillar : Business sophistication 44 4.3 12th pillar : Innovation 39 3.6
  17. 17. <ul><li>Overall assessment </li></ul><ul><li>The investment climate and the competitive condition in India have shown hardly any improvement in the recent past. </li></ul><ul><li>There are in fact four areas where serious attention need to be given on a priority basis to improve India’s competitive ranking and also to facilitate speedier economic development. </li></ul>
  18. 18. PRIORITY AREAS DEMANDING IMMEDIATE ATTENTION 1. Physical Infrastructure : electricity supply, roads, port infrastructure & overall connectivity 2. Controlling Corruption and improving overall governance standard. 3. Social sectors: Eradication of Poverty and Health & Education 4. Reduction of gender disparity & improving Female participation in labor force

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