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THE MINISTER OF STATE (INDEPENDENT CHARGE)
OF THE MINISTRY OF COMMERCE & INDUSTRY
(SHRIMATI NIRMALA SITHARAMAN)
(a) to (e): A Statement is laid on the Table of the House.
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STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF THE LOK SABHA STARRED QUESTION NO. 355 FOR ANSWER ON 27.3.2017.
(a): Government of India has emphasized on the importance of ‘Ease of Doing Business’ as a major pillar of the ‘Make in India’ initiative. The Government’s target is to improve the business regulatory environment of India and India’s ranking in World Bank’s Doing Business Report.
(b) & (c): India ranks 130th in the World Bank’s annual Doing Business Report (DBR) 2017 as against 131st rank (Revised) in the Doing Business Report 2016. The Doing Business report ranks countries on the basis of Distance to Frontier, an absolute score that measures the gap between India and the global best practice on 10 specified indicators. India’s absolute score improved from 53.93 in DBR 2016 to 55.27 in DBR 2017. This is the first time that India has improved its absolute score in two consecutive years as can be seen from the table given below. Additionally, India’s Distance to Frontier score improved in 7 out of the 10 indicators, showing that India is increasingly progressing towards best practice.
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Topics DB 2015 DB 2015
(Revised) DB 2016 DB 2016 (Revised) DB 2017
Overall rank 142 134 130 131 130
Distance to Frontier 52.67 - 54.68 53.93 55.27
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The World Bank in its latest Doing Business Report 2017 has recognized the following Reforms:
I. On Getting Electricity, the report recognized the efforts of Tata Power in Delhi to make it faster and cheaper to obtain an electricity connection. These efforts, combined with efforts in Mumbai last year, have allowed India to improve its rank on this indicator from 137 in DB Report 2015 to 26 in this year’s report, a 111 rank improvement.
II. The report has also recognized the establishment of Commercial Divisions within the High Courts in Delhi and Mumbai to deal with commercial cases above ` 1 crore. This has allowed India to improve its rank by 14 places in 2 years.
III. In the area of Trading Across Borders, the report recognized the implementation of the Single Window Interface for Facilitating Trade (SWIFT), which integrates approvals and risk-based framework of customs and nine departments to provide traders with a single online interface for clearances.
IV. On Paying Taxes, the report recognized online filing and payment of returns at the Employee’s Social Insurance Corporation.
(d) & (e): Government has urged the Central Government Ministries/ Departments to analyse the World Bank’s latest Doing Business Report. Nodal Departments/Ministries have been identified for each of the 10 indicators of the Report. The concerned Departments in coordination with Government of NCT of Delhi and Government of Maharashtra are responsible for reducing procedures, time and cost across each indicator. Further, Ministries/ Departments concerned have been asked to pursue regular engagements with stakeholders, conduct workshops with the users and stakeholders to familiarize them with the reforms, take their feedback on a regular basis and take corrective action. Ministries/ Department concerned have been provided with the set of reforms which need to be implemented and have been asked to identify additional areas related to the Department where reforms and corrective measures need to be taken to ensure time bound and effective implementation of the reforms. Some of the reforms undertaken on various parameters of Doing Business towards easing the business environment in the country are annexed. Due to the reforms which have been undertaken, India’s absolute score has improved from 53.93 in Doing Business Report 2016 to 55.27 in Doing Business Report 2017. Additionally, India’s Distance to Frontier score improved for 7 out of 10 indicators.
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