Documente Academic
Documente Profesional
Documente Cultură
PRESENTATION
EASE OF DOING BUSINESS IN INDIA
Group 10
Neha Malhothra
Kajol Makwana
Santhi Krishna
Prativa Biswas
Sathish Kumar
INDICATORS FOR
MEASURING EASE OF
DOING BUSINESS IN INDIA:
PROCEDURE:
A procedure is defined as any interaction of the company founders with
external parties (for example, government agencies, lawyers, auditors or
notaries).
TIME:
COST
Cost is recorded as a percentage of the economys income per capita. It
includes all official fees and fees for legal or professional services if such
services are required by law
THE 10 PARAMETERS
The index is calculated as the ranking on the simple average of
its percentile rankings on each of the 10 topics namely
India's ranking
145
140
India's ranking
135
130
125
2011
2012
2013
2014
2015
Vishakhapatnam
Navi Mumbai
Gurgaon
Kolkata
Noida
Calicut
Jaipur
Vadodra
Mangalore
Hyderabad
Chandigarh
Kochi
Nagpur
Ahmedabad
Coimbatore
Bhubaneswar
Indore
Pune
Mumbai
Chennai
Bangalore
21
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
Rankin
g of
Cities
in 2015
3
2
1
Limitations
1. The collected data refer to businesses in the economys largest business
city and may not be representative of regulation in other parts of the
economy. To address this limitation, sub national Doing Business
indicators were created.
2. The data often focus on a specific business formgenerally a limited
liability company of a specified sizeand may not be representative of
the regulation on other businesses.
3. Transactions described in a standardized case scenario refer to a specific
set of issues and may not represent the full set of issues a business
encounters.
4. The measures of time involve an element of judgment by the ex-pert
respondents. When sources indicate different estimates, the time
indicators reported in Doing Business represent the median values of
several responses given under the assumptions of the standardized case.
5. The methodology assumes that a business has full information on what is
required and does not waste time when completing procedures
10
STARTING BUSINESS
Records the procedures, time and cost for a business to obtain all
the necessary approvals to start business
Starting a business requires 11.9 procedures,
takes 28.4 days, costs 12.2% of income per
capita and requires paid-in minimum capital of
111.2% of income per capita
Previous
Year:
156th
Rank
11
Starting a business
CONSTRUCTION PERMITS
Records the procedures, time and cost for a business to obtain all
the necessary approvals to build a simple commercial warehouse
Previous
Year:
183rd
Rank
17
GETTING ELECTRICITY
Previous
Year:
134th
Rank
19
REGISTERING PROPERTY
Records the full sequence of procedures necessary for a business to
purchase property from another business and transfer the property title
to the buyers name
Previous
Year:
115th
Rank
20
GETTING CREDIT
Assesses the sharing of credit information and the legal rights of
borrowers and lenders with respect to secured transactions
Previous
Year:
30th
Rank
21
PROTECTING INVESTORS
Measures the strength of minority shareholder protections against
directors use of corporate assets for personal gainor self-dealing
Previous
Year:
21st
Rank
22
PAYING TAXES
Previous
Year:
154th
Rank
*Threshold is the highest total tax
rate among the top 15% of
economies in the ranking on the total
24
tax rate. Calculated yearly basis.
Paying taxes
Previous
Year:
122nd
Rank
26
ENFORCING CONTRACTS
Measures the efficiency of the judicial
system in resolving a commercial
dispute before local courts
Contract enforcement takes 1420.0 days,
costs 39.6% of the value How
of the
Indiaclaim
and and
requires 46.0 proceduresComparator economies
rank on the ease of
enforcing contracts
Previou
s Year:
186th
Rank
28
Diagrammatic PresentationComparison
Indicator
s
India South
Asia
OEDC
TIME
142
0
539
1600
1400
1200
1000
800
600
400
200
0
1069
Indicators
Indi
a
South
Asia
COST
39.6
30.4
21.4
46
43.3
31.5
PROCEDUR
E
OEDC
50
40
India
South Asia
OEDC
20
10
0
Time
India
South Asia
OEDC
30
Cost Procedure
Strategies Successful
enforcement of contract
RESOLVING INSOLVENCY
A robust bankruptcy system functions as a filter, ensuring the survival
of economically efficient companies and reallocating the resources of
inefficient ones.
By improving the expectations of creditors and debtors about the
outcome of insolvency proceedings, well-functioning insolvency
systems can facilitate access to finance, save more viable businesses
and thereby improve growth and sustainability in the economy
overall.
Previous
Year:
135th
Rank
32
33
COST REQUIRED
TO RECOVER
DEBT: includes
court fees,
lawyers fees
and other
related fees and
for India it is
around 9% of
debtors estate.
Source: Doing Business report World Bank
RECOVERY
RATE:
measures the
cents on the
dollar
recovered by
creditors,
present value
of debt
recovered etc.
In India, the
Strategies Successful
Resolution of Insolvency
World Bank Group has worked with more than 70 countries to assist reform
programs aimed at improving the regulatory environment for businesses in areas
covered by the Doing Business project, such as business registration, construction
permitting or insolvency reforms
EMPLOYING WORKERS
Minimum wage for a 19year-old worker or an
apprentice over time
36
0
20
40
60
80
South Africa
China
Russian Federation
Brazil
India
100
120
140
160
180
200
37
38
FDI is not permitted in certain sector such as real estate, lottery, gambling, atomic energy, etc
The process of land acquisition in India has proven unpopular with the citizenry. The
amount reimbursed is fairly low with regard to the current index of prices prevailing in the
economy. Furthermore, due to the low level of human capital of the displaced people, they
often fail to find adequate employment. There have been a rising number of political and
social protests against the acquisition of land by various industrialists.
39
Recent issues
Vodafone and Nokia encountered tax dispute with the Indian Income Tax Department.
Motorola Mobility has closed down its India website and is reducing headcount in the
worlds second largest mobile phone market in terms of subscribers amid rising operational
costs.
Tata Motors pulled out of Singur where the proposed Nano factory was planned due
to controversy generated by land acquisition
Tata Motors Jaguar Land Rover (JLR) opened its first plant $1.78-billion in Changshu,
China.
Delta Airlines Inc., United Airlines Inc. and Chrysler Group Llc decided to shift its call
centre operations from India to the US.
Number of Indian enterprise technology companies are now shifting base out of the country
to grow faster. Lack of sufficient risk capital, not enough profitable exits for investors and
fewer customers willing to experiment with technology are making hordes of entrepreneurs
41
take this decision.
External Commercial Borrowing (ECB) policy liberalized to include the payment for import
of service, technical know-how and license fees as part of import of capital goods by the
companies for use in the manufacturing and infrastructure sector, subject to compliance of
certain conditions.
Recently, the Government of India has announced the reforms in the FDI policy by listing out
FDI relaxation in various sectors including telecom, petroleum & natural gas refining,
defence, single brand retail trading, multi brand retail trading, courier services, asset
reconstruction companies, commodity exchanges, power exchanges, stock exchanges and
credit information companies. It also allowed e-auction of coal mines.
The policy is liberalised to allow trade credit to companies operating in all sectors up to 5
years for import of capital goods as classified by Director General of Foreign Trade (DGFT).
The Factory Act 2013 introduced enhanced corporate governance standards particularly in
relation to the e-governance, independent directors, audit, accounts, Corporate Social
Responsibility, mandatory valuation, private placement of securities, small company concept,
cross-border mergers, class action suits, related party transaction etc
42
44
45
Transnational entrepreneurs
Transnational entrepreneurs (TEs) are individuals that migrate from one
country to another, concurrently maintaining business- related linkages
with their former country of origin, and currently adopted countries and
communities.
A recent study by the World Bank on the Remittance Market in India
Box 1 Remittances from the Indian Diaspora 3 has pointed out that
remittance inflows into India are some 4% of GDP and have surpassed
both foreign aid flows and foreign direct investment (FDI).
While India received nearly $21 billion from overseas Indians in 2003,
the figure jumped to $64 billion in 2011
Transnational
entrepreneurs
Transnational entrepreneurship
contribute to the economic
development of their country of origin.
Support for entrepreneurs and small businesses in the country of
origin.
Unique combination of ownership advantages, which extend from
their expertise and the networks they have established at different
places, to their ability to forecast new developments in the country
of origin.
They have better knowledge and relationship opportunities that
other investors lack.
Combine this knowledge with the skills, knowledge and networks
they have cultivated abroad, yielding important synergistic
advantages.
49
50