Smooth running businesses are the hallmark of development for a nation. This economic activity is of great value to any country. It adds value to the economic aspect of the nation and uplifts the standard of living of its people. In recent years, many businesses have been identified as suitable places to launch new subsidiaries and businesses. Even inside the country, many people are starting new businesses, startups, and are becoming entrepreneurs. But have you wondered what drives all these people to pool and invest a lot of money in India? Well, the answer is the growing ease of doing business in India. In recent years, the government of India has taken several initiatives to attract businesses and help them flourish. Most of these initiatives come from updating the existing laws, making special provisions, cutting taxes, providing easy access to documents, making the processes online, etc. All these measures have lured enough investors to start new ventures in India.
What is Ease of Doing Business ranking?
The ease of doing business ranking is an international standard ranking that ranks countries if they are a better place to establish a business or not. The ranking is based on set criteria and incorporates many factors that influence and affect the business environment. The ranking is given by the World Bank group. If a country gets a higher rank, then it is believed to have the most supportive and growing environment for a business to mushroom and flourish. It also indicates strong property rights and simple and business-friendly rules and regulations. (Ease of doing Business in India)
Where does India stand in the Ease of Doing Business ranking?
As a matter of fact, over the years and especially in recent years, India has seen good growth in the number of new startups and businesses. Foreign investments have also increased. Overall starting and running a new business in India has become simple and profitable. The Ease of Doing Business ranking of India in the year 2020 was 63rd out of 190 countries. This great rank was a result of the efforts of the government of India through their ambitious plans. Noteworthy, India was also among the top 10 improvers continuously three times. That is quite a hat trick! However, there are considerable factors behind this successful journey of India in Ease of Doing Business.
Some of the key factors that played a pivotal role in achieving these goals are discussed briefly.
The process of starting a business
Over the years the introduction and mandate of a few things like the Permanent Account Number (PAN) and Director Identification Number (DIN) have been brought together to relieve the pain of getting the files passed easily. At the same time, the elimination of the incorporation fee paved the way for anyone to dream of this idea. Digitalization has also led to a great revolution by reducing the amount of paperwork and time spent on it. Now, these processes have been simplified via web services. At the same time, amendments in the companies act have been done. All these efforts have resulted in getting the businesses registered and started easily and fast.
Construction permits
Construction permits are extremely important for any business. A lot of things have to be considered before the acquisition of land. There are issues related to the quality of land, safety issues, approvals, etc. Recently, many governments have taken initiative to make the approval process faster. Now, one can use digital signatures and online scrutiny. The number of procedures involved has been reduced. Also, the cost of obtaining a construction permit has also been reduced.
Electricity
Electricity is a very crucial thing for any business or enterprise. In recent years, the government of India has invested hugely in order to increase and maintain the supply of electricity throughout the country. By improving the supply of electricity, businesses can be started anywhere without considering any issues. As a matter of fact, electricity is made available within 7 days, the charges are not too high, and the number of documents to obtain an electricity connection. The number of procedures involved is also reduced to a great extent.
Property Registrations
Once you have found the right property, you will have to get it registered. This process can be hugely messy and time taking. Hence, to reduce the amount of time taken, many of the registrar offices have been made digitalized. Such online services have essentially helped in setting up a business without the involvement of a third party anymore!
The above-mentioned were some of the factors that have increased the ease of doing business in India. However, the story is not complete yet. There are many difficulties too and in a way, India has to move way ahead to become the hub of businesses and opportunities.
