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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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Mani Shankar Aiyar’s remarks on Hindutva spark political backlash from BJP

Congress leader Mani Shankar Aiyar’s comments on Hindutva at a Kolkata debate have triggered sharp reactions from the BJP, escalating the Hinduism versus Hindutva debate.

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Veteran Congress leader Mani Shankar Aiyar has triggered a political controversy after describing Hindutva as “Hinduism in paranoia” during a public debate in Kolkata, prompting a strong rebuttal from leaders of the Bharatiya Janata Party (BJP).

Aiyar made the remarks at a discussion titled “Hinduism needs protection from Hindutva”, organised by the Calcutta Debating Circle at the Calcutta Club on Sunday. Several political leaders, legal experts, historians and journalists participated in the debate.

Aiyar draws distinction between Hinduism and Hindutva

Speaking at the event, Aiyar argued that Hinduism and Hindutva are fundamentally different, describing Hinduism as a spiritual and civilisational faith, while calling Hindutva a political ideology that emerged in the early 20th century.

“Hindutva is Hinduism in paranoia. It asks 80 per cent Hindus to feel threatened by 14 per cent Muslims,” Aiyar said, adding that Hinduism had survived and flourished for thousands of years without the need for what he described as political protection.

He referred to incidents involving attacks by vigilante groups and criticised actions against individuals over religious practices, beef consumption and participation in Christmas celebrations. Aiyar also cited writings of Vinayak Damodar Savarkar, contrasting them with the teachings of Mahatma Gandhi and Swami Vivekananda, whom he described as proponents of non-violence and inclusivity.

According to Aiyar, “There is no way Gandhi’s or Vivekananda’s Hinduism can be protected or promoted by Savarkar’s Hindutva.”

BJP leaders push back strongly

Aiyar’s comments drew an immediate response from BJP leaders present at the debate and later from party spokespersons.

BJP MP Sudhanshu Trivedi questioned the framing of the debate itself, arguing that the term “Hindutva” refers to “Hindu tattva” or the essence of Hindu philosophy. He said that associating Hinduism with the suffix “ism” was misleading and dismissive of India’s indigenous traditions.

“When you cherish Hinduism, it is called Hindutva,” Trivedi said, rejecting the distinction drawn by Aiyar.

BJP spokesperson Shehzad Poonawalla accused Aiyar of repeatedly making remarks that, according to him, insult Sanatan Dharma. He claimed that the comments echoed the Congress party’s broader stance on Hindutva.

Poonawalla also referred to past statements by Congress leaders and said that Hindutva has been defined by the Supreme Court as a “way of life.” He accused the party of attempting to portray Hindutva as violent and divisive.

Political debate intensifies

The exchange has added to the ongoing political debate over the relationship between Hinduism and Hindutva, a subject that has remained contentious in Indian politics. While Aiyar defended his views as ideological and historical critique, BJP leaders framed the remarks as an attack on religious identity.

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TVK chief Vijay to appear before CBI in Karur stampede probe

TVK leader Vijay will appear before the CBI in Delhi as part of the probe into the Karur stampede that claimed 41 lives during a political rally in 2024.

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Tamilaga Vettri Kazhagam (TVK) chief and actor Vijay is set to appear before the Central Bureau of Investigation (CBI) in Delhi on Monday in connection with the Karur stampede case that claimed 41 lives. The incident occurred on September 27 last year during a massive political rally addressed by Vijay, making it one of the deadliest crowd-related tragedies in Tamil Nadu’s recent political history.

Supreme Court handed probe to CBI

The investigation into the stampede has undergone multiple legal changes. Initially, the Madras High Court had constituted a Special Investigation Team (SIT) to probe the incident. However, the Supreme Court later transferred the case to the CBI, directing that the investigation be monitored by a panel headed by a retired Supreme Court judge.

The apex court also set aside a one-member commission earlier appointed by the Tamil Nadu government, observing that the matter required a more independent and credible inquiry. Notably, TVK itself had sought an independent probe into the tragedy.

A senior party source told media that Vijay would cooperate fully with the investigation and expressed hope that the truth would emerge through the CBI inquiry.

Police and Vijay trade blame

Following the stampede, the Tamil Nadu Police had attributed the chaos to Vijay’s alleged delay in reaching the venue, claiming the prolonged wait led to an uncontrollable surge of the crowd. Police officials had also pointed to inadequate arrangements such as food, drinking water and toilet facilities, stating that the situation worsened as the crowd grew restless.

Vijay rejected these allegations, calling them a conspiracy by the ruling DMK, a charge the party has denied. He, in turn, blamed the police for poor crowd management and failure to clear bottlenecks on approach roads leading to the rally venue.

Film certification issue adds political edge

Vijay’s appearance before the CBI comes amid a separate controversy over the delay in certification of his film Jana Nayagan, which was originally slated for release ahead of Pongal. While a single judge of the Madras High Court had directed the Central Board of Film Certification (CBFC) to grant certification, a division bench later stayed the order and adjourned the matter to January 21. Neither Vijay nor TVK has officially commented on the issue.

Opposition leaders, including those from the Congress, have alleged that central agencies are being used to exert pressure on TVK ahead of the Tamil Nadu Assembly elections due in a few months. Chief Minister MK Stalin recently remarked that the CBFC had “joined the list of central agencies being used as weapons by the Union government.”

The BJP has rejected these allegations. The party has also denied speculation that it is indirectly aiding TVK to split anti-DMK votes following its renewed alliance with the AIADMK.

Political stakes ahead of elections

Vijay has repeatedly described the upcoming Assembly election as a direct contest between the ruling DMK and TVK, referring to the DMK as his “political enemy” and the BJP as his “ideological enemy.”

Responding to questions on whether the ongoing CBI probe could make the party vulnerable to political pressure, a senior TVK leader said the party had faith in the investigation and would approach the courts if any undue pressure was applied.

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Drunk speeding Audi crushes pedestrians in Jaipur, one killed and 15 injured

A late-night crash involving a drunk speeding Audi in Jaipur left one pedestrian dead and at least 15 others injured after the car ran over roadside vendors and pedestrians.

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One person was killed and at least 15 others were injured after a speeding Audi car, allegedly driven by drunk occupants, ran over pedestrians and roadside vendors in Rajasthan’s Jaipur late Friday night.

According to the police, the luxury car lost control and first hit a road divider before ploughing into food carts and roadside stalls over a stretch of nearly 30 metres. The vehicle eventually crashed into a tree and came to a halt, damaging several parked vehicles along the way.

Visuals from the scene showed shattered food carts scattered across the road, while the Audi was left completely mangled due to the impact.

A total of 16 people were hit in the incident and were rushed to a nearby hospital. Four of the injured were reported to be in critical condition and were later referred to Sawai Man Singh (SMS) Hospital for advanced treatment.

One of the injured, identified as Ramesh Bairwa, a resident of Bhilwara, succumbed to his injuries during treatment.

Police officials said that four people were inside the car at the time of the crash, and all of them were allegedly under the influence of alcohol. While one person has been arrested, three others fled the spot after the incident.

The driver of the Audi has been identified as Dinesh Ranwan, a resident of Churu district in Rajasthan. The vehicle has been seized, and a search is underway to trace the remaining accused.

Rajasthan Chief Minister Bhajanlal Sharma expressed grief over the incident and instructed officials to ensure proper medical care for the injured. Deputy Chief Minister Premchand Bairwa and Health Minister Gajendra Singh Khimsar visited the hospital to enquire about the condition of those injured.

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