NEW INDIA ON THE UP
1Resolving Insolvency Rank 103 (up from 136)
Resolving Insolvency of Business had a key role in India’s ascent up the rankings this year. The watershed moment here was the creation and implementation of the Insolvency & Bankruptcy Code (2016) – designed to handle restructuring and insolvency proceedings in a more efficient manner. This can also be witnessed by increase in Strength of Insolvency and Framework Index from 6 to 8.5.
2Paying Taxes Rank 119 (up from 172)
Part of India’s success in the Paying Taxes category can be attributed to the enabling of online registration, return and payment of Employee’s State Insurance (ESI) and Employee’s Provident Fund (EPF) contribution. India’s Post Filing Index also improved from 4.3 to 49.31.
3Getting Credit Rank 29 (up from 44)
India’s new Insolvency and Bankruptcy code had a role to play here as well, as it provides a time limit and clear grounds for relief to secured creditors. This is reflected by the Improvement in Strength of Legal Rights Index from 6 to 8.
4Protecting Minority Investors Rank 4 (up from 13)
Greater disclosure of conflicts of interest is now required by board members, increasing the remedies available in case of prejudicial related-party transactions. Additional safeguards have been put for shareholders of privately held companies. This saw advancement in Extent of Conflict of Interest Regulation Index from 6.7 to 7.3 and in the Extent of Shareholder Governance Index from 8 to 8.7
5Getting Electricity Rank 29
Over three years, India’s ranking for this parameter has improved by 108 places . The government’s efforts can be seen by the reduction in cost of getting a new connection to 96.7% of per capita income from 133.2% previously.
6Enforcing Contracts Rank 164 (up from 172)
Introduction of the National Judicial Data Grid, helped India in improving on the Quality of Judicial Process Index, which went up from 9 to 10.3. On the other hand, there was also a reduction in cost of enforcing contracts, from 39.6% to 31% (of claim value)