A comparison between India and China is very common, especially the fact that India has beaten China to become the fastest growing economy in the world. India may perform better than China in the World Bank ‘Ease of Business Doing’ rankings next year if the Modi government gets its focus on 3 key areas in the coming year. India has performed exceptionally well in World Bank’s ‘Ease of Doing Business’ rankings this year.
In the 190-countries barometer, India jumped 30 places to bag the 100th rank in a research. Talking about China, it has maintained its 78th position from 2017. The gap between 78 and 100 may seem not too big, but it’s not easy to cover that distance. To surpass the rank of China, India not just needs to perform amazingly well in the 10 areas that World Bank assesses, but also perform better from many countries that are ahead of India.
Here are the three areas for India to focus on:-
In China, the total number of procedures to register a property is 4, whereas in India it doubles to 8. On an average note, it takes 19.5 days to register a property in China, while it takes 53 days in our country. India’s ranking was 138 for 2017, whereas it has witnessed a further decline to 154. It is one important aspect where Indian authorities and government needs to give attention.
World Bank says that “India made enforcing contracts easier by introducing the National Judicial Data Grid, which makes it possible to generate case management reports on local courts. This reform applies to both Delhi and Mumbai”. In China, on the other hand, it ranks 5 on the indicator, takes just 496 days to enforce contracts. The figure is as worse as 1,445 days in India.
There is no doubt in that India has made a huge jump on this list, which is impossible to ignore. “India made resolving insolvency easier by adopting a new insolvency and bankruptcy code that introduced a reorganization procedure for corporate debtors and facilitated the continuation of the debtor’s business during insolvency proceedings. This reform applies to both Delhi and Mumbai,” says World Bank. However, China is at 56.
‘Dealing with construction permits’ is another important area to work for both the countries. However, World Bank appreciated the efforts of India in improving its procedures. “India reduced the number of procedures and time required to obtain a building permit by implementing an online system that has streamlined the process at the Municipality of New Delhi and Municipality of Greater Mumbai,” says World Bank. A lot is yet to be done at this area for India as many issues faced by businesses in this area.