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Fine-print of India’s improved EoDB ranking is disturbing, Start Ups faltering

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Fine-print of India’s improved EoDB ranking is disturbing, Start Ups faltering

[vc_row][vc_column][vc_column_text]Despite PM Narendra Modi’s Start Up India initiative, World Bank’s Ease of Doing Business rankings show starting new business in India is becoming difficult

As India finished at the 100th spot – improving from last year’s 130 – in the World Bank’s Ease of Doing Business rankings for 190 countries that were surveyed, it was only natural for Prime Minister Narendra Modi and finance minister Arun Jaitley to pat their backs on the supposed endorsement of their handling of the country’s economy.

Access the World Bank’s EoDB rankings report here:

http://www.doingbusiness.org/rankings

The EoDB rankings declared on Tuesday are no doubt a shot in the arm for a government that, for a better part of the past year, has been struggling to justify its economic policies and counter growing criticism over a perceived slump in investor sentiment and job creation. Yet, they also portray another reality; one which doesn’t bode well for the Modi government nor justify the premature celebrations over what the Prime Minister termed as a “historic jump”.

For starters, the survey factors in the ease of doing business only in Mumbai and Delhi while Tier I and Tier II cities which are proposed to emerge as the new business centres of India have not been surveyed in the ‘Doing Business 2018: Reforming to Create Jobs’ report that was released on Tuesday by Annexte Dixon, World Bank vice president for the South Asia region. Considering that the national and financial capital are already choked with existing industries and businesses, the exclusion of Tier I and Tier II cities from across the country should in itself be reason enough to not see India’s improved ranking as a comprehensive endorsement of the overall EoDB scenario across the country.

Dixon attributes the “significant jump” in India’s ranking to “the Indian government’s consistent efforts over the past few years and India’s endeavor to strengthen its position as a preferred place to do business”. The report acknowledges improvements in indicators such as resolving insolvency, paying taxes, protecting minority investors and getting credit as the reasons behind the improvement in India’s ranking.

However, the report skips factoring in disruptions caused in businesses and the overall Indian economy due to two of the biggest and most controversial ‘reforms’ rolled out in the country by the Modi government – demonetisation and implementation of the Goods and Services Tax (GST).

While demonetisation, which flushed out 86 per cent of the cash in circulation from the economic in one single stroke and paralysed the economy, especially in the informal sector, for months, was a decision unique to India and so found no mention in the World Bank report, the EoDB survey was completed a month prior to the GST rollout and hence disruptions caused by the new tax regime were also not factored in while deciding India’s ranking.

Economists within India and abroad, as also Opposition leaders, have hit out at the Modi government over the negative impact of demonetisation and the hasty implementation of the GST regime. However, with the two contentious ‘reforms’ finding no mention among the EoDB parameters, it would perhaps not be wholly incorrect to assume that the rankings do not reflect the impact that they have had on businesses in India.

Fine-print of India’s improved EoDB ranking is disturbing, Start Ups faltering

Comparative rankings of India of the current and previous year in the 10 categories on which countries were ranked. Photo credit: Business Line

Another aspect of the report that cannot be brushed aside is the fact that the rankings come as an endorsement of Congress vice president Rahul Gandhi’s charge against the Modi of his government having made it more difficult to start new businesses in India despite the Prime Minister’s pet Start Up India initiative.

Of the 10 broad parameters that the EoDB rankings are based on, three are clearly linked with starting of new business and in each of these parameters, India has slipped from its rankings of the previous year. For instance while on the parameter of ‘starting a business’, the need for Indian entrepreneurs to go through 12 procedures to start a business, as opposed to five in high-income countries, worsened India’s ranking in the category to 156 from 155 last year – out of a total of 190 countries.

A majority of new ventures also need to register their official property that they plan to use as the venue for their business. In the category of ‘Registering property’, India marked its biggest decline, slipping from a rank of 138 last year to 154 in the current year. New ventures also need electricity supply and on that count too, India has slipped although the country’s overall ranking in the category of ‘getting electricity connection’ is better than nearly 70 per cent of the countries that were surveyed. With a 45-day period needed to get a new electricity connection, India ranked 29 in this category as against its previous ranking of 26.

The parameters where the country seems to have done well, marginally or substantially, are all that apply to existing business, be it categories like ‘enforcing contracts’ and ‘resolving insolvency’ or ‘paying taxes’. What the Modi government needs to do, if it really is serious about its Start Up India initiative, is to also make setting up of new business – and not just in Mumbai or Delhi but elsewhere in India too – a much less cumbersome process.[/vc_column_text][/vc_column][/vc_row]

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3 dead, 9 hospitalised after gas leak at fertiliser plant in Maharashtra

According to police, the explosion released toxic chemical fumes.

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Three individuals, including two women, lost their lives and nine others were hospitalised following a gas leak caused by an explosion in a reactor at a fertiliser plant in Maharashtra’s Sangli district, an official said on Friday.

The incident occurred at approximately 6:30 PM on Thursday at the Myanmar Chemical Company, located in Shalgaon MIDC within Kadegaon tehsil.

Sangli Superintendent of Police Sandip Ghuge stated that the gas is suspected to be ammonia.

According to police, the explosion released toxic chemical fumes. “Approximately 12 people in the facility were affected and subsequently taken to the hospital. Tragically, two female workers and a security guard have died, while nine others are currently receiving treatment,” stated Sangram Shewale, Senior Inspector at Kadegaon police station.

Seven of the injured individuals have been admitted to Sahyadri Hospital in Karad, with five of them in critical condition in the ICU.

The deceased women have been identified as Suchita Uthale (50) from Yetgaon in Sangli district and Neelam Rethrekar (26) from Masur in Satara district, PTI reported.

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Ahead of Delhi Elections, Arvind Kejriwal launches Revdi Par Charcha campaign to seek feedback on freebies

Arvind Kejriwal said 65,000 meetings will be held across Delhi at micro levels by the AAP leaders and workers.

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Ahead of Delhi Elections, Arvind Kejriwal launches Revdi Par Charcha campaign to seek feedback on freebies

The Aam Aadmi Party (AAP) on Friday launched a campaign with a tagline Revdi Par Charcha to seek public feedback on freebies. The campaign comes ahead of the assembly elections, which is scheduled to be held in February.

Former Chief Minister and AAP national convenor Arvind Kejriwal launched the campaign with his colleagues at the party office, saying while the opposition calls freebies as revdi, the party calls it services. This campaign will start on November 25 and will continue for 15 days until December 10, discussing the issues with common man.

Notably, the opposition has been targeting the AAP for providing free electricity, water and free public buses for women among other facilities. However, AAP feels freebies help citizens live a life of dignity.

Gopal Rai, AAP’s Delhi unit chief, said that so far, politicians used to enjoy the facilities, while citizens paid taxes. He continued that Arvind Kejriwal’s government decided that the people should also get the facilities like the politicians, adding the BJP called their attempt revdis. He said that AAP is launching the ‘Revdi Par Charcha’ campaign to discuss with the people in the city if the government should provide the facilities or not.

Launching the campaign, Arvind Kejriwal said 65,000 meetings will be held across Delhi at micro levels by the AAP leaders and workers. He said that AAP has six revdis for the people of Delhi. Mentioning that the Prime Minister and BJP have said several times that Kejriwal is providing freebies to the people that should be stopped, the former Chief Minister said that now people will now tell them if they want these six freebies.  He further concluded that if the BJP is elected here, they will stop these services immediately.

While listing the six services, the AAP national convenor said that Delhi is getting free electricity round the clock. He added that there was a time when Delhi used to see power cuts for 8-10 hours, but AAP ensured that the situation changed. He also noted that his party is providing free water, free pilgrimage to senior citizens, free bus rides to women, free world-class education and free medicine and treatments. Additionally, the pamphlet launched by Arvind Kejriwal also listed that soon the women in Delhi will get Rs 1,000 per month as well, later termed as the seventh revdi by the former Chief Minister.

Reports said that the paper will be circulated across the national capital. The paper also reads that if the reader feels they are getting huge water bills, they should not pay it. It mentioned that AAP will waive all water bills once Arvind Kejriwal is re-elected.

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Rahul Gandhi says air pollution in North India a national emergency, tourism declining, global reputation crumbling

“We need a collective national response, not political blame games,” the Congress leader said on his X handle.

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Leader of Opposition in the Lok Sabha Rahul Gandhi on Friday said the air pollution in North India is a national emergency that needs a collective national response and not a political blame game. The Congress leader added that due to air pollution tourism is declining and “our global reputation is crumbling”.

It is a public health crisis that is stealing children’s future and suffocating the elderly, Gandhi said, adding an environmental and economic disaster that is ruining countless lives.

“As Parliament meets in a few days, MPs will all be reminded of the crisis by our irritated eyes and sore throats. It is our responsibility to come together and discuss how India can end this crisis once and for all,” the Leader of the Opposition in Lok Sabha said.

The former Congress chief said the poorest “among us suffer the most”, unable to escape the toxic air surrounding them. Families are gasping for clean air, children are falling sick, and millions of lives are being cut short, he added.

The Rae Bareli MP noted that the pollution cloud covers hundreds of kilometres. He said cleaning it up will require major changes and decisive action from governments, companies, experts, and citizens.

“We need a collective national response, not political blame games,” the Congress leader said on his X handle.

Gandhi also shared a video on a social media platform where he discussed the capital’s air pollution with environmentalist expert Vimalendu Jha. In the video, the Congress leader said he has been facing eye-burning and breathing issues and how the last week in Delhi has been terrible.

He said, “I tell my mother to leave town this month.” Jha explains to Gandhi that the sources of air pollution in Delhi are episodic and perennial. Episodic sources are firecrackers and stubble burning, which affect the month of November. “Vehicular contributes 50 per cent of Delhi’s pollution and construction-related roadside dust is another 30 per cent,” Jha said.

The Air Quality Index in Delhi has been severe since November 16, making it five consecutive days till Wednesday. On November 15, the average AQI was 396 (very poor).

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