doing business in india report- world bank survey
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Doing Business in India and Comparison with China and ASEAN
Group 4
Doing Business Report
• World Bank Study started in 2004.
•Purpose of the report.
• Covered 183 Nations in 2011
• Benchmark product – Global acceptance.
• Influence Policy makers world wide.
• Importance for developing Countries.
Doing Business Report - Parameters
Property and Construction
Taxes Contracts
Starting/ Closing
Business
Trading across
borders
Credit and Investment
Ease of Doing Business – Global Trends
•
Ease of Doing Business – Global Rank.
• Economy Global Business Rank
Singapore 1
United Kingdom 4
United States 5
Thailand 19
Malaysia 21
China 79
India 134
5 year Measure of cumulative change
Doing Business Report - Parameters
Property and Constructi on
Taxes
Contracts
Starting Business
Trading across borders
Credit and Investment
Starting Business
• Setting up a limited liability company in the economy.• Importance and example of Egypt and Malaysia.
• Sub indicators 1. No. of Procedures 2. Time to complete 3. Cost as % of per capita 4. Min. Paid up Capital
• Case of S Asia and India
Starting Business – Global ranking
Economy Ranking
United States 4
Singapore 9
Malaysia 113
China 151
Indonesia 155
India 165
Starting Business – Comparison
In Developing Economies:Compiling with building regulations is so costly
in time & money, that many builders opt out. Builders either:a. Pay Bribes to pass inspections, ORb. Build illegally that leads to hazardous
construction
• Formal property transfer is too complicated & costly Steps involved in Property transfer:• To Purchase a property from another business.• Transfers the property title to the buyer’s name. In the past 6 years,105 economies undertook 146
reforms to make the property transfer easy. Globally:• Time to transfer fell by 38%• Cost of transfer by 10%
Starting Business – India Vs S Asia
Paying Taxes
• Taxes are essential to provide public amenities, infrastructure and services which are important for the proper functioning of an economy.
• Doing business data shows that where it is more difficult and costly to pay taxes have larger shares of informal sector activity.
• More than 60% of economies have reformed in the last 6 years and are starting to see concrete results e.g. Columbia, Mauritius
What do the Paying Taxes indicators measure?
Benchmarking paying taxes regulations
India Vs China and ASEAN
Economy Global Rank
India 164
China 114
Singapore 4
Malaysia 23
Thailand 91
Philippines 124
Vietnam 124
Indonesia 130
Source : http://www.doingbusiness.org/rankings
Historical Data
Trading Across Borders• Making trade easier between countries is increasingly
important for business in today’s globalized world.
• Excessive document requirements, burdensome customs procedures, inefficient port operations and poor infrastructure lead to extra costs and delays for exporters and importers.
• On the other hand, tools such as electronic data interchange systems, risk-based inspections and single windows help improve an economy’s trading environment.
• E.g. Georgia and Korea
What do the Trading Across Borders indicators measure?
Benchmarking Trading Across Borders Regulations
India Vs. China and ASEAN
Economy Global Ranking
India 100
China 50
Singapore 1
Thailand 12
Malaysia 37
Indonesia 47
Philippines 61
Vietnam 63
Source : http://www.doingbusiness.org/rankings
Historical Data
Historical Data cont…
Getting Credit
Ranking of India in Getting credit –compared to good practice and
selected Economies
Getting Credit Sub indicators in India Over the Past 4 Years
Protecting Investors
Ranking of India in Protecting investors –compared to good practice and selected Economies
The Following Graph illustrates the protecting investors index in India compared to best practice
and selected economies
Enforcing Contracts in India
• One of the key concerns of foreign investors to enter India.
• Excessive political control and regulations.• Business climate varies between india’s 30
states.• Anti – industry movements have thwarted
many foreign investments.
Reality Figures
• It takes almost 46 legal proceedings to be carried out in a payment dispute.
• Average time taken is 1420 days.• Costs the company almost 40% of the claim.• Results into bribery and scams.• Restricts companies to bring new product,s
ervice or innovation.
Closing of Business
•
Closing of Business- Global Ranks
•
Closing of Business India Vs S Asia
•
Recommendations
•Changing Policies and Regulations to be more investor friendly
•Focus on production with efficiency.
• Responsibility from Bureaucratic to Professionals.
• Political and Social consensus on Foreign Investments.
•Minimizing Corruption, increasing transparency.
Thank you
Questions.