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BW Businessworld

Thinking To Start A Business In India; Move Carefully

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India is one of the fastest growing economies in the world. However, India’s position in the ‘Doing Business’ annual reports published by the World Bank continues to be less than favourable. The latest rankings place India 134th among 185 countries; lower than its BRICS (Brazil, Russia, India, China, South Africa) counterparts. Despite being one of the fastest growing economies in the world and potential investment hub, India lags behind in terms of ease of doing business. Taking cognizance of this anomalous situation, CII and KPMG have jointly prepared a report aimed at improving India’s position in the World Bank’s Ease of Doing Business rankings.

The report identifies key areas for reform which will enable doing business in India, including setting up of business, land acquisition, taxation, contract enforcement, dealing with construction permits, getting electricity, registering property, trading across border, enforcing contracts or resolving insolvency.

Chandrajit Banerjee, Director General, CII said, “CII hopes that the findings of this report would help bring the issues to the fore and also serve as a reference point for the imminent need to pursue reforms in business practices and processes. Indian industry hopes that the new Government would accord due importance to this extremely important and urgent agenda that would help churn the wheels of investment and growth.”

As per the syrvey result, about 50 per cent of the respondents have highlighted major challenges in obtaining environmental clearances. More than one-third one of the respondents relared to land approvals as the major obstacles in starting a business in India.

Richard Rekhy, Chief Executive Officer, KPMG in India said, “Having an environment that facilitates entrepreneurship, promotes investments productivity and growth is critical for improving business climate in India. The ease with which this is achieved can be a source of strategic advantage. The vulnerability of our country’s current standing in the Doing Business index means that reforms in these areas have become critical.”