Even after India's 12-slot jump in the World Bank's Ease of Doing Business survey, Finance Minister Arun Jaitley said the actual improvement in the ease of doing business was even better. “I am grateful that the World Bank has recognised that India is now becoming an easier place to business... I believe that this 12point movement does not reflect the full pace of reforms that we have done.”
“A large number of steps which we have already taken are going to be reflected in the rankings next year. These rankings are only up to June 1 and some of those steps, whose impact is not seen on the ground, as yet have not been factored into this. But, I am sure in the years, our ranking will certainly improve,” he said. Jaitley, however, also said that more work needs to be done to improve the business environment in the country and has vowed to bring reforms. The report also highlights the reforms already in motion in the country, which were not fully felt by majority of businesses by June 1. Released last week, World Bank's Doing Business 2016: Measuring Regulatory Quality and Efficiency, accounts all the reforms taken in 186 different countries, between June 2, 2014 and June 1, 2015. India ranks 130, from last year's 134, making a significant shift in trend after years of decline. Singapore stays in the top, followed by New Zealand (2nd), Denmark (3rd), Republic of Korea, Hong Kong SAR, China, UK, US, Sweden, Norway, and Finland.
Industrial Policy and Promotion Secretary, Amitabh Kant said, “A number of things have been done across the 10 parameters. The World Bank has not recognised them because they recognise usage by public. The cut-off date was May 31 and many of the things will be recognised in next year's study. In addition, institutional changes such as the National Company Law Tribunal, commercial courts and the bankruptcy law will also kick in by hem. So, we expect a quantum jump next year.”
Jaitley, meanwhile, has shown confidence saying the government will achieve the fiscal deficit target of 3.9 per cent in the current fiscal year. “I have consciously kept this year a very modest target of 3.9 per cent. I think the manner in which tax revenues and expenditure are moving, I don't think this will be difficult to meet.” Stating that there was better collection of revenues during the first six months of the current fiscal, he hopes the same for the remaining two quarters of 2015-16.
“I don’t think this year we have to cut down expenditure of either state government or public expenditure of the central ministries as it is moving ahead of our target as far as indirect taxes are concerned,” the minister said. The targets for the next three years have been set at 3.9% for 2015-16, 3.5% for 2016-17, and 3% for 2017-18.
