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India has a chance to marginally improve its ranking in the ‘doing business’ standings, the World Bank has indicated, while advising the country to outperform its peers significantly to rise up the chart.
At present, India ranks 134 and lags even its neighbours, Sri Lanka (85), Nepal (105) and Bangladesh (130) in the ‘Doing Business Index’, which is topped by Singapore. The World Bank Group releases its ‘Doing Business’ report annually, and the next in the series is scheduled to be released on October 29.
Better growth expectedEarlier, the Bank said that India was expected to grow at 5.6 per cent in the current fiscal year (2014-15). This is expected to accelerate further to 6.4 per cent in 2015-16 and then 7 per cent in 2016-17.
“To realise its full potential, India needs to continue making progress on its domestic reforms agenda and encourage investments. The Government's efforts at improving the performance of the manufacturing sector will lead to more jobs for young Indian women and men,” said Onno Ruhl, Country Director (India), World Bank.
Asked about the Bank’s perception on the changing business environment in India after the NDA Government was formed in May, Ruhl said it was important for it (the Government) to have a realisation about outperforming its peers. “If you want to create more jobs and get more investment, you will have to outperform your peers. I am delighted that the thinking is in that direction, and once you have the mindset, it’s not actually rocket science. You just have to ask business people what annoys them most and solve that problem,” he said. India aims to be among the top 50 in terms of ‘doing business’ in the next two years.
The Bank’s update said growth had rebounded significantly due to a strong industrial recovery. Capital flows are back, signalling growing investor confidence, as inflation has moderated from double digits, the exchange rate has stabilised, and financial sector stress has plateaued.
It also said that longer term growth potential remains high due to favourable demographics, relatively high savings, recent policies and efforts to improve skills and education, and domestic market integration.
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