Doing Business in India 2009: Reforms Promote Competitiveness and Growth in Indian Cities.
In New Dehli:
Minakshi Seth
Phone: +91-11-4111-1058
E-mail: mseth@ifc.org
In Washington, D.C.:
Nadine Ghannam
Phone: 1 (202) 473-3011
E-mail: nsghannam@ifc.org
New Delhi, June 30, 2009—A new
report by IFC and the World Bank finds that it is easier to start and operate
a business now than it was three years ago in many large Indian cities.
Doing Business in India 2009 shows how government regulations and practices
ease or constrain business activity. In 14 of the 17 locations it benchmarks,
the report records significant business reforms at the national, state,
and municipal levels. These include computerizing records, putting tax
registration online, and setting up single-window systems for permit applications—all
making it easier for businesses to comply with rules and regulations.
While all cities in India have a similar legal and institutional framework,
local regulations and the implementation of national laws vary. And these
variations across India in the regulatory ease of doing business show the
potential for cities to learn from one another. The report finds
it is easiest to
start and operate a business in Ludhiana, Hyderabad, and Bhubaneshwar.
Starting a business is fastest in Mumbai and Noida, at 30 days, while it
takes 41 in Kochi. Business start-up is least expensive in Patna. Resolving
a commercial dispute takes about two years in Bhubaneshwar, Hyderabad,
and Kochi, but almost four years in Mumbai. Compared with economies worldwide,
cities in India lag most in the ease of closing a business and paying taxes.
In India, where more than 90 percent of jobs are in the informal sector,
regulatory reforms can help businesses operate efficiently in the formal
sector.
“Reforms that cut red tape, clarify property rights, and streamline regulatory
compliance can yield big payoffs for firms and workers,” said Penelope
Brook, Acting Vice President of the World Bank Group’s Financial and Private
Sector Development Vice Presidency. “A greater ease of doing business
as measured by the Doing Business report is associated with stronger
growth, job creation, and a smaller informal sector.”
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Doing Business in India 2009 was produced at the request of
the Department of the Industrial Policy and Promotion at India’s Ministry
of Commerce and Industry. The report covers regulations that affect seven
stages in the life of a small to midsize domestic enterprise. For information
on the report’s data, methodology, and contributors, visit www.doingbusiness.org/india
and www.doingbusiness.org.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For
more information, visit www.ifc.org.
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