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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

Union Cabinet approves 2% hike in DA for central govt employees, pensioners

This follows July 2024’s 3% DA hike (50% to 53%) and precedes the anticipated 8th Pay Commission recommendations expected in 2026. Since 2020, DA revisions have followed this biannual pattern, except during the pandemic-induced freeze from April 2020 to June 2021.

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The Union Cabinet Friday announced a 2% increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, marking the second such adjustment this fiscal year. The revised rates, rising from 53% to 55% of basic pay, will take effect from January 1, 2025, benefiting approximately 1.15 crore individuals across the country.

Union Minister Ashwini Vaishnaw confirmed the decision following today’s Cabinet meeting, stating the hike reflects the government’s commitment to mitigating inflation’s impact on its workforce. “This revision aligns with our established formula based on the All-India Consumer Price Index data,” Vaishnaw said. The move carries an annual financial implication of ₹6,614.04 crore for the exchequer.

Detailed Financial Impact
The increase affects 48.66 lakh active employees and 66.55 lakh pensioners. For illustration:

  • Senior bureaucrats with ₹2 lakh basic pay will see monthly DA rise by ₹4,000 (from ₹1.06 lakh to ₹1.10 lakh)
  • Mid-level officers drawing ₹56,100 basic pay gain ₹1,122 monthly
  • Entry-level staff (₹18,000 basic) receive an additional ₹360 per month

Implementation Timeline
The Finance Ministry has directed all departments to:

  1. Process revised payments for February 2025 salaries
  2. Calculate and disburse January arrears separately
  3. Complete all account adjustments by March 31, 2025

This follows July 2024’s 3% DA hike (50% to 53%) and precedes the anticipated 8th Pay Commission recommendations expected in 2026. Since 2020, DA revisions have followed this biannual pattern, except during the pandemic-induced freeze from April 2020 to June 2021.

State governments typically follow the Centre’s lead on such adjustments, suggesting similar announcements may follow from various state capitals in coming weeks. The move comes as the government balances fiscal responsibility with welfare commitments in an election year.

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Cricket news

Who is the best T20 player right now? Harbhajan picks THIS cricketer over Head, Abhishek and McGurk

Nicholas Pooran has earned Harbhajan Singh’s vote as the best T20 batter right now, ahead of Travis Head and Abhishek Sharma, after a fiery IPL 2025 start.

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Nicholas Pooran, Harbhajan Singh, who is best T20I batter, Travis Head, Abhishek Sharma, Jake Fraser-McGurk,

India spin legend Harbhajan Singh, now part of the IPL 2025 commentary panel, has weighed in on one of T20 cricket’s most debatable questions—who is the best T20 batter right now?

Is it Australia’s in-form explosive opener Travis Head, India’s rising star Abhishek Sharma, or the ultra-aggressive Jake Fraser-McGurk? No, says Harbhajan.

His pick? Nicholas Pooran, the Trinadidan tsunami.

The former off-spinner declared his choice on social media after Nicholas Pooran’s latest blitz for Lucknow Super Giants (LSG) in IPL 2025. “Currently Nicholas Pooran is the best player of T20 format. Period!” he posted on X.

Presenting the batter’s T20 stats, Harbhajan declared Pooran as the best T20 player in the world right now, following his electrifying start to IPL 2025 with LSG.

Continuing his red-hot form, the 29-year-old Trinadadian has smashed 145 runs in just two matches, including a 26-ball 70 against Sunrisers Hyderabad and a 75 from 30 balls vs Delhi Capitals. He currently holds the Orange Cap, with a strike rate of 258.92 and average of 72.50.

After his destructive knock against SRH, Nicholas Pooran became the second player after KL Rahul to score over 1000 runs for LSG. He reached the milestone in just 31 matches, averaging 45.54 at a destructive strike rate of 184.53.

Known for his effortless power-hitting, Pooran holds the record for the most IPL fifties scored in under 20 balls—doing so four times, more than any other player. He recently smashed an 18-ball half-century, second-fastest for LSG, only behind his own 15-ball effort from IPL 2023.

When it comes to speed, Pooran leads again—holding the record for most IPL fifties in under 20 balls (4). Travis Head and Fraser-McGurk have managed this feat three times each.

In a tournament full of hard-hitters, Pooran isn’t just keeping pace—he’s setting it.

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India News

Justice Yashwant Varma transferred to Allahabad High Court amid row

Justice Yashwant Varma has been transferred from the Delhi High Court to the Allahabad High Court, with the Centre formalising the move amid a continuing cash stash controversy.

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Justice Yashwant Varma transferred to Allahabad High Court

The Central government has approved the transfer of Delhi High Court judge Justice Yashwant Varma to the Allahabad High Court, following the recommendation of the Supreme Court collegium. The decision, formalised by the Union Law Ministry on Thursday, comes amid ongoing controversy over an alleged cash stash incident linked to the judge’s residence.

“In exercise of the power conferred by clause (1) of Article 222 of the Constitution of India, the President, after consultation with the Chief Justice of India, is pleased to transfer Shri Justice Yashwant Varma… to be a Judge of Allahabad High Court,” stated the official notification.

The Supreme Court had earlier clarified that the transfer was not related to the ongoing inquiry into the alleged cash discovery at Justice Varma’s official bungalow, where a fire reportedly destroyed a substantial amount of money. The judge has denied the allegations, calling them baseless and part of a conspiracy.

Protests and criticism over transfer decision

The decision has triggered protests by lawyers in the Allahabad High Court, who have objected to what they perceive as a pattern of sending judges to their court as a punitive measure. They argue that such transfers reinforce a negative perception of the court being used as a “dumping ground.”

Former Attorney General of India Mukul Rohatgi also voiced concern over the matter, suggesting the transfer appears linked to the controversy surrounding the alleged cash stash. “There are several loose ends in this case… I don’t think there is any great thing in saying that the transfer is not connected to the scam,” he said, questioning the Supreme Court’s statement distancing the move from the investigation.

Justice Varma, in a response submitted to the committee formed by Chief Justice of India Sanjiv Khanna, described the allegations as damaging to his reputation. “In the life of a judge, nothing matters more than reputation and character. That has been severely tarnished and irreparably damaged,” he wrote.

The controversy continues to stir debate within the legal community, even as Justice Varma prepares to assume his new position at the Allahabad High Court.

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