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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

Priyanka Gandhi meets Nitin Gadkari over Kerala road projects, light moments mark discussion

Priyanka Gandhi met Nitin Gadkari in Parliament to discuss road projects in Kerala, with the meeting marked by humour, political remarks and an informal food tasting.

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Priyanka Gandhi meets Nitin Gadkari (1)

Congress MP Priyanka Gandhi Vadra on Thursday met Union Road Transport and Highways Minister Nitin Gadkari at his office in Parliament to raise issues related to road infrastructure projects passing through Kerala. The meeting combined formal discussions with lighter moments, including a humorous exchange and an unexpected food tasting session.

Kerala road projects discussed at Parliament meeting

Priyanka Gandhi, the Member of Parliament from Wayanad in Kerala, discussed six road projects that pass through the state. During the interaction, Nitin Gadkari clarified that some of these projects fall under the jurisdiction of the Kerala government and therefore cannot be directly handled by the Centre. However, he assured the Congress leader that the remaining proposals would be examined.

According to those present, the discussion remained cordial, with both sides acknowledging administrative limitations while exploring possible ways forward.

‘Bhai ka kaam ho gaya’ remark draws laughter

The meeting also saw a light-hearted moment when Gadkari referred to a recent interaction with Rahul Gandhi, the Leader of the Opposition in the Lok Sabha. He said Rahul Gandhi had met him earlier regarding road-related concerns in Rae Bareli.

In a humorous remark, Gadkari said that if work was done for the brother but not for the sister, it could lead to complaints. The comment prompted laughter from Priyanka Gandhi and others present in the room.

Congress confident of future action in Kerala

During the conversation, Priyanka Gandhi expressed confidence about the Congress party’s prospects in the upcoming Kerala Assembly elections. She indicated that proposals currently under the purview of the Left Front government in the state would be taken forward once Congress comes to power.

Her remarks reflected political confidence while keeping the focus on infrastructure needs in Kerala.

A homemade dish adds informal touch

Apart from policy discussions, the meeting included an informal culinary moment. Nitin Gadkari had prepared a rice-based dish after learning the recipe from online videos. Visitors to his office were offered rice balls served with chutney.

Gadkari encouraged Priyanka Gandhi to taste the dish, and she, along with Congress leader Deepender Singh Hooda, was seen sampling the food while continuing their conversation with the minister.

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AAP dominates Punjab zila parishad polls, leads in most panchayat samiti zones

AAP has won 201 out of 317 declared zila parishad zones in Punjab so far and is leading in a majority of panchayat samiti seats, with counting still underway.

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Punjab Zila Parishad Polls

The ruling Aam Aadmi Party (AAP) has recorded a strong performance in the Punjab zila parishad elections and is leading in the majority of panchayat samiti zones, as per results declared so far on Thursday. The counting process is still underway and complete results are awaited, officials said.

Polling for the rural local bodies was held on December 14 to elect representatives across 347 zones of 22 zila parishads and 2,838 zones of 153 panchayat samitis in the state.

AAP secures clear edge in zila parishads

According to the available results, outcomes have been declared for 317 zila parishad zones so far. Of these, the AAP has won 201 zones, placing it well ahead of other parties.

The Congress emerged second with victories in 60 zones, followed by the Shiromani Akali Dal (SAD) with 39 zones. The BJP won four zones, the BSP secured three, while independents claimed 10 zones.

District-wise data shows that the AAP won 22 zones in Hoshiarpur, 19 each in Amritsar and Patiala, 17 each in Tarn Taran and Gurdaspur, and 15 zones in Sangrur. The Congress registered its best performances in Gurdaspur and Ludhiana with eight zones each, followed by Jalandhar with seven zones. The SAD performed strongly in Bathinda with 13 zones, while the BJP managed to win four zones in Pathankot.

AAP leads in panchayat samiti results

In the panchayat samiti elections, trends declared so far indicate that the AAP is leading in a majority of zones. However, officials clarified that counting is ongoing and the final picture will be clear only after all ballot papers are tallied.

Kejriwal, Mann reject opposition allegations

Reacting to the trends, AAP supremo Arvind Kejriwal said the party’s performance reflected strong rural support for the Bhagwant Mann government’s work. Addressing the media in Mohali along with Chief Minister Bhagwant Mann, Kejriwal dismissed allegations of irregularities raised by opposition parties.

He said the elections were conducted in a fair and free manner and claimed that the results so far showed a clear wave in favour of the AAP in rural Punjab. Kejriwal stated that nearly 70 per cent of the zila parishad and panchayat samiti seats had gone in favour of the party.

Congress, SAD question poll conduct

The Congress and the Shiromani Akali Dal, however, accused the ruling party of misusing official machinery. Punjab Congress chief Amrinder Singh Raja Warring alleged that the AAP had “stolen” the rural mandate and claimed that the results did not reflect genuine public support.

Opposition parties had earlier also accused the AAP government of high-handedness during the polling process, allegations that the ruling party has strongly denied.

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Vijay signals political push with TVK rally as last film Jana Nayagan promotion aligns with 2026 polls

Vijay combined a major TVK rally with the promotion of his final film Jana Nayagan, signalling a carefully planned transition from cinema to politics ahead of the 2026 Tamil Nadu polls.

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Actor vijay

Tamil actor-turned-politician Vijay marked a significant moment in his political journey on December 18, combining a major public rally of his party Tamilaga Vettri Kazhagam (TVK) with a key promotional event for his final film Jana Nayagan. The twin developments underline his calibrated shift from cinema to full-time politics, with the 2026 Tamil Nadu Assembly elections clearly in focus.

Vijay addressed a large gathering near the Vijayamangalam toll plaza in Erode, marking his first major open rally after the Karur incident. Around 25,000 people were present at the venue, reflecting the sustained interest around his political entry and the mobilisation capacity of his fan base, now being encouraged to transition into party supporters.

Parallelly, the second single from Jana Nayagan was released online in the evening. The film, slated to hit theatres on January 9, has been announced as Vijay’s last cinematic outing before dedicating himself entirely to politics.

How Jana Nayagan fits into Vijay’s political strategy

Jana Nayagan, directed by H Vinoth, is positioned as more than just a farewell project to Vijay’s acting career. From its title, which translates to “People’s Leader”, to its narrative and music by Anirudh Ravichander, the film has been designed to mirror themes that Vijay has begun emphasising in his political speeches — governance, accountability and moral authority.

The actor has repeatedly projected himself in rallies as a leader who wants to serve the people of Tamil Nadu and raise issues affecting marginalised sections. The film’s tone appears to align with this image, aiming to present a restrained and serious persona without alienating his long-time fans.

By declaring Jana Nayagan as his final film, Vijay has attempted a gradual emotional transition for his supporters, with TVK hoping that this loyalty will convert into organisational strength and votes in the upcoming elections.

Analysts divided on electoral impact

Political analysts, however, remain cautious about the effectiveness of this approach. One analyst noted that while Vijay is clearly attempting to convert his massive fan following into party cadres, not every fan can realistically take on a political role. Another analyst pointed out that the film alone is unlikely to fetch votes, though messaging around issues such as corruption or dynastic politics could help Vijay gain some traction over time.

The analysts also flagged that Vijay is entering a crowded and competitive political space and that the impact of recent controversies has added to the challenges ahead. According to them, his current strategy appears to be aimed not only at 2026 but at building a longer-term political position.

Invoking legacy and symbolism

A recurring element in Vijay’s rallies has been his admiration for former Tamil Nadu Chief Minister and actor M G Ramachandran. The second single from Jana Nayagan, titled Oru Pere Varalaaru, reinforces this aspiration, with lyrics emphasising the idea of a name that makes history and the power of the people’s voice.

While invoking MGR remains a common political trope in Tamil Nadu, analysts underline that his journey remains unmatched. They stress that sustained electoral participation and organisational strength, rather than crowd sizes at rallies, will determine Vijay’s political future.

For now, Vijay’s rally in Erode and the simultaneous promotion of Jana Nayagan highlight a carefully timed blend of cinema and politics, as he prepares to test his popularity beyond the silver screen.

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