Thursday, 2 November 2017

What eased doing business in India?

  • India jumped up 30 notches into the top 100 rankings on the World Bank’s ‘ease of doing business’ index, thanks to major improvements in indicators such as resolving insolvency, paying taxes, protecting minority investors and getting credit.
  • While the jump is impressive, that is not the whole story. Excepting few increases due to increase in computerisation everywhere, nothing much has changed on the ground.
  • Modi hailed the jump in India’s ranking as “historic” and said it was a result of “all-round and multi-sectoral reform push.” Jaitley said India’s jump is the highest by any country, and that reaching the ‘top 50’ target set by Prime Minister Modi is “doable”. These guys bombard with publicity every minor uptick but avoids talking about negatives whether it it happened on its own or whether they have done it is immaterial. 
  • This ease of doing business in India helps only large corporates and MNCs and has nothing do with informal businesses which contributes 45% GDP and 80% jobs, that stands decimated by Modi's 'hare brained demonetisation' and 'badly implimented noble GST'.
  • The persistent problems of India namely agraian distress, joblessness, spiralling down of economy, healthcare & education in doldrums and so on has nothing to with this ‘ease of doing business’.
  • While common man continues to suffer, government's coffers could see increased inflows over time.

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