A few days back, World Bank has released its official report on Ease of Doing Business in different countries. It is a collective study of 10 parameters of 190 countries across the globe. In EoDB index2017, India did perform well and took a quantum jump of 30 positions and has reached to rank 100. India has taken a jump of 42 positions in last three years. Recently Finance Minister Arun Jaitley has given his official statement on EoDB report and has promised to reach in top 50.
Before analysing India’s performance, let’s have a closer look on parameters by considering which World Bank has made their report for India. Although this exercise is going on from last 15 years but World Bank considers a little portion of India while preparing their index report.
1. While preparing their report, they have considered only two cities of India, Delhi and Mumbai.
2.This report is based on 4 types of inputs and those inputs are –
a.They have only followed the prescribed rules/steps mentioned in statute books.
b.World Bank has also interacted with experts from business and economy about India.
c.While preparing their report, they have also interviewed the views of government officials of India.
d.The report has also taken consideration of views of World Bank’s own staff.
My opinion on EoDB index report
It is perception index which evaluates the things only on papers. It does not look into the actual ground of realities. World Bank has considered ease of doing business only in Delhi and Mumbai. But we have many more states like Jharkhand, Chattisgarh, Karnataka and Telangana etc. which have done very well in DIPP report which is separately released by Finance Ministry by considering ease of doing business in all states inside India.
They have prepared the report by interviewing industries experts, economists, government officials of India and by considering the views of World Bank’s own staff. But one may argue that on what ground and on what qualification, they have taken their opinions.
In my opinion, India can improve her rank by changing her climate conditions of investment. There are few factors in which India can improve her stand and those are –
1. Infrastructure – Right now India lags behind infrastructural development. But India has also taken amicable efforts in improving her infrastructural reliance. Recently launched Bharat Mala project has raised the hope of infrastructural development throughout the country. It will help to build a closed and complex network of roads which will increase transportation efficiency and thus decrease the shipping cost. Apart from Bharat Mala project, India has also launched Sagar Mala project last year which will provide close linkage of every ports and hinterland of sub-continent.
2. Skilled Manpower – India is suffering from the shortage of skilled manpower. There is a shortage of skilled manpower in Information Technology, Engineering, construction and mining sectors etc. If India wants to perform well in EoDB index then India has to produce more skilled labours and engineers and for that India has to made changes in her education policy and set it towards more target based studies so that it can match the education system of other developed countries like USA, Germany and UK etc.
3. GOI should focus on the concept of Cooperative and Competitive Federalism within the different states. Center should give more flexibility to the states to shoulder their own responsibility and enhancing their performance in different sectors. It will help to achieve both cooperative and competitive federalism within states which will ultimately help to fetch good rank in EoDB index.
4. Rules may be good on books but we need to implement it in letter and spirit. States must expand digitization just like centre. We should imbibe by rules and values of the World Bank.