You are here: Home » Economy & Policy » News
Business Standard

Ease of doing business in India: Rankings improved, but issues remain

Currently, it takes 60-68 and 88-82 hours in border and documentary compliance for exports and imports, respectively

Subhayan Chakraborty  |  New Delhi 

exports, ships

India’s overall rank in the rankings may have improved, but still there are severe on-ground issues, the has pointed out. Case in point: Despite focusing on slashing customs procedures to ease the flow of exports, trading across borders remains a major barrier in boosting outbound shipments.

Currently, it takes 60-68 and 88-82 hours in border and documentary compliance for exports and imports, respectively. On the other hand, in Italy — the country with the least customs hold-ups — it takes only one hour for each.

Also, while there is zero cost of compliance in Italy, the survey points out in India, exporters have to shell out $260-281. Delays and procedural inefficiencies further inflate the costs.

ALSO READ: Economic Survey suggests 2020-21 to be a challenging year, fiscally

chart

The survey mapped the journey of a standard consignment of apparel, a crucial export sector that has recently been battered in recent years by cheaper alternatives from Bangladesh and Vietnam. Exports stood at $16 billion in 2018-19, shrinking 0.7 per cent YoY. Three years after key regulatory and labour changes in the form of fixed-term employment were put in place, apparel shipments to India's largest market, the US, continue to stagnate.

First Published: Sat, February 01 2020. 00:36 IST
RECOMMENDED FOR YOU