doing business in india report- world bank survey

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.