Ease of Doing Business: Real for Medium and Small Enterprises?

While on one hand GST collections have crossed 1 lakh crore mark and on the other hand, India has leaped 23 positions ahead in the World Bank annual ranking of ease of doing business.

Today, India is listed at 77^th position as against 100^th position in the last year. The commerce minister has quoted that “it is a rare feat for any large and diverse country of the size of India.”

It is pertinent to note that under the leadership of honorable PM Narendra Modi, the corporate scenario in India is improving at a rapid rate.

Here’s table that reflects our progression

Indicator	2017	2018	Change
Construction Permits	181	52	129
Trading Across Borders	146	80	66
Starting a Business	156	137	19
Getting Credit	29	22	7
Getting Electricity	29	24	5
Enforcing Contracts	164	163	1
	100	77	23

Customs Reforms help India jump 66 ranks in Trading Across Borders. India’s rank in Trading Across Borders has taken a quantum leap from 146 to 80 in the Doing Business report released by @WorldBank #EaseOfDoingBusiness pic.twitter.com/IUr5jRcz25

— CBIC (@cbic_india) November 1, 2018

Ease of Doing Business – Large vs. Small and Medium Enterprises?

Though everything around us seems to be shining, starting from the recent quarterly reports laid down by the major banks and corporates (HDFC, Godrej, Tata Motors, Ashok Leyland, TVS Motors) to telecoms enrolling minimum recharge plans to PM insisting offshore nations to explore the business opportunities in India, but still the entrepreneurial journey in India is not comfortable. And the blame goes to

The accumulated NPA or bad loans is another cause of concern. It has further dampened the investor sentiment. The recent controversy between RBI and GOI has made the offshore investors skeptic about their investment in India.

While the RBI blames GOI for creating a potentially catastrophic situation that could further deepen the crisis, the GOI blames RBI for imposing stringent policies that would further reduce the economic development. Now, we don’t know to whom to blame too, but it for sure that this controversy has ignited political uncertainty among the investors.

The sharply depreciating rupee, a rise in oil prices, inflation and massive fund outflow from the capital market clearly indicates that India is facing a financial crisis. Though the fundamentals of India is stronger than before in terms of finance and technology but the ongoing sharp outflows of the foreign fund from the capital market reflect that the investor sentiment is not progressing at an expected rate.

The recent merger of government banks including IDBI bank, Oriental Bank of Commerce and Central Bank prompt towards the fact that something is really wrong with our banking scenario. Blame it on the recent scams committed by Vijay Mallya the defunct owner of Kingfisher Airlines, Nirav Modi owner of Gitanjali Gems or the relaxing norms laid down by RBI, the investor sentiments suffered a lot.

In order to lieu the backward and middle- class society ahead of the election polls, the government is promising huge loans and attractive offers on its real estate schemes, but it is believed that this would further widen the fiscal deficit situation.

In the end, we want to conclude that the true economic development in India is only possible if the political parties and other segments of society work together and shake off the dead weight of their past experience and move towards innovation.