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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]

India News

Parliament winter session: Government lists 15 bills, including Waqf bill

The session will kick off on November 25 and conclude on December 20.

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The government has listed five new ones and one to amend the contentious Waqf law out of 15 bills for the winter session of Parliament. The session will kick off on November 25 and conclude on December 20.

The government has introduced five new bills, including the Coastal Shipping Bill, 2024, which aims to promote coasting trade and increase the participation of Indian-flagged vessels owned and operated by Indian citizens for both national security and commercial purposes.

Another significant legislation that will be introduced by the government is the Indian Ports Bill, 2024. This bill is designed to implement measures for the conservation of ports, enhance security, and manage pollution, ensuring compliance with India’s international obligations and statutory requirements.

Additionally, the government plans to introduce the Merchant Shipping Bill, 2024, which aims to meet India’s obligations under maritime treaties and support the development of Indian shipping while ensuring the efficient operation of the Indian mercantile marine in a way that serves national interests.

Pending legislation includes the Waqf (Amendment) Bill, which is awaiting consideration and passage after the joint committee of both Houses submits its report to the Lok Sabha. The committee is expected to report by the end of the first week of the winter session.

Currently, there are eight bills, including the Waqf (Amendment) Bill and the Mussalman Wakf (Repeal) Bill, pending in the Lok Sabha, while two additional bills are in the Rajya Sabha.

Furthermore, the government has also listed the Punjab Courts (Amendment) Bill for introduction, consideration, and passage, which seeks to increase the pecuniary appellate jurisdiction of Delhi district courts from Rs 3 lakh to Rs 20 lakh.

The Merchant Shipping Bill, along with the Coastal Shipping Bill and the Indian Ports Bill, is slated for introduction and eventual passage.

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International Criminal Court issues arrest warrant against Israel PM Benjamin Netanyahu over war crimes

The court accused Prime Minister Netanyahu and Defence Minister Gallant of crimes against humanity, including murder, persecution, inhumane acts, and the war crime of starvation as a method of warfare.

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International Criminal Court issues arrest warrant against Israel PM Benjamin Netanyahu over war crimes

The International Criminal Court (ICC) today issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former Defence Minister Yoav Gallant over alleged war crimes and crimes against humanity.

The court accused Prime Minister Netanyahu and Defence Minister Gallant of crimes against humanity, including murder, persecution, inhumane acts, and the war crime of starvation as a method of warfare. The leaders allegedly restricted essential supplies such as food, water, and medical aid to civilians in Gaza, resulting in severe humanitarian crises and deaths, including among children.

Last year in October, Israel had launched attacks on Gaza in retaliation for the surprise attack by Hamas. The Israel-Hamas war has led to the death of thousands of civilians, while lakhs have been displaced. The major infrastructures in Gaza, including hospitals and schools, were also destroyed as Israel vowed to wipe out Hamas.

The International Criminal Court stated that it found reasonable grounds to believe the accused intentionally targeted civilians and limited medical supplies, forcing unsafe medical procedures, which caused immense suffering. This ruling was based on the findings from at least October 8, 2023 until at least May 20, 2024.

The court remarked that it has assessed that there are reasonable grounds to believe that PM Netanyahu and Defence Minister Gallant bear criminal responsibility as civilian superiors for the war crime of intentionally directing attacks against the civilian population of Gaza.

Furthermore, it also noted that the lack of food, water, electricity and fuel, and medical supplies created conditions of life calculated to bring about the destruction of part of the civilian population in Gaza, leading to death of civilians, including children due to malnutrition and dehydration.

Additionally, the International Criminal Court dismissed two challenges by Israel against its jurisdiction in the situation in the State of Palestine.

Notably, Israel had contested the ICC’s jurisdiction, claiming it could not be exercised without Israel’s consent. Nonetheless, the Chamber ruled that the Court has jurisdiction based on Palestine’s territorial scope, including Gaza, the West Bank, and East Jerusalem. It further noted that Israel’s objections were premature, as jurisdictional challenges under the Rome Statute can only be made after an arrest warrant is issued.

Reportedly, Israel had also requested a fresh notification regarding the investigation, started in 2021. Denying the request, the court stated that Israel had earlier declined to request a deferral, making additional notifications unnecessary.

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Yogi Adityanath accords tax-free status to Sabarmati Report film in Uttar Pradesh

Earlier, Prime Minister Narendra Modi and Home Minister Amit Shah have also praised this film.

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Uttar Pradesh Chief Minister Yogi Adityanath on Thursday accorded a tax-free status to ‘The Sabarmati Report’ film, based on the train burning incident at Godhra in Gujarat in 2002, in the state.

The announcement was made after Chief Minister Adityanath attended the screening of Vikrant Massey and Raashii Khanna-starrer ‘The Sabarmati Report’ in Lucknow with the film’s cast.  

Speaking to reporters, actor Vikrant Massey thanked the Uttar Pradesh Chief Minister for making ‘The Sabarmati Report’ film tax-free in the state. “I want to thank Yogi Adityanath ji. This is an important film and I appeal to everyone to go and watch this film,” he said.

Chief Minister Adityanath along with many of his cabinet colleagues watched the film ‘The Sabarmati Report’ under a special screening at a cinema hall in the capital, said a spokesperson of the state government.

Several people associated with the film unit were also present on the occasion. Later the chief minister announced to make this film tax-free in UP.

The BJP-ruled states have been praising the makers of The Sabarmati Report, claiming the team has tried to bring out this truth in front of the people of the country through the film.

The saffron party is appealing to people to watch this film and try to get closer to the truth of Godhra.

Uttar Pradesh becomes the sixth BJP-ruled state after Haryana, Rajasthan, Chhattisgarh, Madhya Pradesh and Gujarat to declare lead actors Vikrant Massey and Raashii Khanna’s film tax-free.

Adityanath said along with identifying the faces of those who are conspiring against the country for political gains, there is also a need to expose them. The film team has discharged its responsibilities to expose the truth, he said, adding an attempt has been made to bring the real truth in front of the country in a big way through the film.

The Sabarmati Report is said to be based on the incident of setting fire to a train full of ‘karsevaks’ in Godhra on February 27, 2002, killing 90 devotees. After this incident, communal riots broke out in Gujarat. Earlier, Prime Minister Narendra Modi and Home Minister Amit Shah have also praised this film.

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