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| India's ranking slips as doing business become tougher |
| Press Trust of India / New Delhi Sep 09, 2009, 13:29 IST |
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India has slipped a notch to 133 in the Doing Business Index, indicating business environment in the country has become tougher during the year as compared to other nations.
India's ranking in the Index, prepared by the World Bank and the International Finance Corporation (IFC), has slipped on account of the deterioration in parameters like starting a business, obtaining credit and investor protection.
India's neighbours, except Afghanistan, have been ranked better in the index. Pakistan has been ranked at the 85th position followed by Sri Lanka (105), Bangladesh (119) and Nepal (123).
On the positive side, India has improved its score on the "closing a business" indicator by taking steps to ease resolution of insolvency cases — a critical area in times of crises.
Singapore occupies the first place in the Doing Business 2010 report which focused on "Reforming through difficult times."
In the global ranking of ease of doing business, Singapore is followed by New Zealand, Hong Kong and the United States.
"Faced with today's financial and economic crisis, policy makers continue to recognize the importance of private businesses and entrepreneurs in creating jobs and driving growth," the Doing Business 2010 report said.
However, India on the parameter of starting a business fell by 3 ranks to the 169th position. The parameter is based on time, cost, procedures and paid-in minimum capital.
On the parameter of getting credit, the country again lost 3 notches over the previous year to the 30th rank.
Citing a recent research in India, the report said poor women in the rural sector have difficulty in gaining access to the formal financial system and their chances of engaging in entrepreneurial activity shows a strong increase when they are able to secure a loan.
Further, India showed a deterioration on the front of protecting investors and fell by 3 ranks to 41st position.
"The current crisis has made access to equity markets more challenging. In times of uncertainty, investors become even more concerned about corporate governance risks and look for legal protections," the report said.
Other parameters on which India was seen slipping were dealing with construction permits and employing workers.
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