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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

BJP’s Punjab outreach faces fresh challenge as farmers return to Shambhu border

The BJP’s push to shift Punjab’s political focus towards development has encountered a fresh challenge as farmers resume protests at the Shambhu border over concerns surrounding the proposed India-US trade agreement.

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Prime Minister Narendra Modi’s recent visit to Punjab had signalled what many viewed as a fresh political outreach by the Bharatiya Janata Party (BJP) in a state where it has struggled to recover from the fallout of the 2020-21 farm laws protest. However, the return of farmers to the Shambhu border over concerns surrounding the proposed India-US trade agreement has once again brought agrarian issues to the forefront.

Thousands of farmers gathered at the Punjab-Haryana border, while Haryana Police stopped them from marching towards Delhi. The scenes have drawn comparisons with both the 2020-21 farm laws protest and the farmers’ agitation witnessed in 2024.

BJP’s development narrative faces disruption

During his recent Punjab visit, Prime Minister Modi focused on development, infrastructure and investment, signalling the BJP’s intention to shift political discussions away from the farm laws controversy ahead of the Assembly elections, which are expected in about six months.

His decision to wear a green turban, a colour closely associated with Punjab’s farming community, was widely viewed as a symbolic gesture aimed at reaching out to rural voters.

However, the ongoing protest over the proposed India-US trade agreement has interrupted that narrative, with farmers once again mobilising at the Shambhu border.

Concerns over proposed India-US trade agreement

Farmer organisations have expressed concern that lower import duties under the proposed India-US trade agreement could allow heavily subsidised American agricultural and dairy products to enter the Indian market. They argue this could reduce domestic prices and negatively impact farmers’ incomes.

The groups have also maintained that waiting until the agreement is finalised would leave little opportunity to safeguard farmers’ interests.

Punjab BJP president Kewal Singh Dhillon has appealed to farmers not to draw conclusions before the agreement is finalised. He said no final pact has been signed and asserted there would be “no compromise on the interests of farmers and livestock rearers”. He also said Prime Minister Modi has assured that Punjab’s farmers would not be adversely affected.

Opposition steps up attack

The issue has quickly become a political flashpoint in Punjab.

The Congress has launched a campaign against the proposed trade agreement, alleging it could adversely affect the state’s agriculture and dairy sectors.

The Aam Aadmi Party has described the proposed pact as the “biggest betrayal of farmers” and has demanded that the Centre make the draft agreement public.

The Shiromani Akali Dal has also extended support to the agitation, accusing the Centre of ignoring the concerns of Punjab’s farming community.

Political implications ahead of Punjab polls

The BJP has been attempting to broaden its support beyond its traditional urban voter base by expanding its presence in rural Punjab ahead of the Assembly elections.

Political observers had viewed Prime Minister Modi’s recent visit as the beginning of that outreach. However, the renewed farmers’ mobilisation risks reviving memories of the 2020-21 farm laws agitation, which had significantly affected the BJP’s standing among many farmers in the state.

Unlike the earlier movement, which centred on domestic agricultural reforms, the current agitation focuses on a proposed international trade agreement. If the movement gathers further momentum, it could become India’s first large-scale farmers’ protest against a foreign trade pact, bringing renewed attention to how political parties balance international trade objectives with the interests of domestic agriculture.

With Assembly elections approaching, the renewed agitation has the potential to once again make farmers’ concerns a central issue in Punjab’s political discourse.

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CJP warns of fresh protest if cases against students not withdrawn by Tuesday

The Cockroach Janta Party has threatened to resume protests if cases against students are not withdrawn, alleging the Centre violated assurances made during recent talks.

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The Cockroach Janta Party (CJP) has warned that it will resume protests from Tuesday if the Centre does not withdraw cases filed against demonstrators and stop further police action against students involved in the nationwide agitation.

The Abhijeet Dipke-led movement, which began as a satirical campaign and later evolved into a nationwide protest over alleged examination irregularities, had ended its 37-day sit-in at Delhi’s Jantar Mantar over the weekend following discussions with the government.

According to the organisation, the protest was withdrawn in “good faith” after Education Minister Dharmendra Pradhan resigned, one of the group’s key demands.

CJP alleges breach of assurances

CJP spokesperson Ashutosh Ranka alleged that authorities had failed to honour assurances made during negotiations by continuing police action against protesters.

In a post on X, he claimed that hundreds of students had been arrested in Bihar and West Bengal, while volunteers and protesters in Delhi and other states were facing surveillance and harassment.

Ranka urged senior ministers JP Nadda and Jitendra Singh, who represented the government during the talks, to ensure that all FIRs registered against protesters are withdrawn and that no fresh cases are filed by Delhi Police, central investigative agencies or police forces in BJP-allied states.

He also sought a written copy of the understanding reached during the negotiations regarding legal action against protesters.

Demands raised after talks with Centre

Following the third round of discussions held at the Constitution Club on Saturday, the CJP had said the Centre agreed to provide suitable compensation to the families of NEET aspirants who died by suicide and assured that FIRs lodged against protesters across the country would be withdrawn.

The organisation had submitted a five-point charter of demands to the government and said another round of talks would be held after four weeks.

One of the group’s major demands was the withdrawal of FIRs registered after the July 20 ‘Chalo Sansad’ march and a commitment that no further legal action would be initiated against protesters.

Police action and Parliament debate

Several FIRs were filed following clashes during the July 20 protest near Parliament after demonstrators attempted to march from Jantar Mantar towards Parliament.

Police used tear gas and batons to disperse the crowd, leading to clashes and multiple detentions.

On Monday, the issue echoed in Parliament as Opposition members repeatedly demanded a government response over the police crackdown on protesters.

Meanwhile, despite disruptions in the House, the government introduced a Bill in the Lok Sabha proposing stricter penalties for examination paper leaks.

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India summons Ukrainian envoy after ships with Indian crew attacked in Black Sea

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India has summoned the Ukrainian Ambassador after two merchant vessels carrying Indian crew were attacked in the Black Sea, raising concerns over the safety of Indians working in the conflict zone.

The Ministry of External Affairs (MEA) described the incidents as a matter of serious concerns and conveyed India’s position directly to the Ukrainian envoy.

According to the MEA, the attacks took place amid the ongoing Russia-Ukrainian war, where commercial shipping has increasingly come under threat due to military operations. Although no deaths have been reported, several Indian seafarers were on board the affected vessels, prompting the government to seek immediate clarification from Ukraine and stress the need to ensure their safety.

During the meeting, the MEA reiterated that merchant ships engaged in commercial trade and civilian crew members must not become targets during armed conflict. India urged Ukraine to take all possible steps to prevent such incidents and to uphold international maritime law, which protects civilian shipping operating in international waters.

The ministry said it is in constant contact with Indian missions abroad, shipping companies, and maritime authorities to monitor the condition of Indian crew members. Officials have assured that diplomatic and consular assistance for the crew.

The attack have once again highlighted the dangers faced by thousands of Indian seafarers employed on international cargo vessels operating in conflict-affected regions. The continuing war has disrupted shipping routes in the Black Sea, creating risks for commercial trade and the safety of multinational crews.

The latest diplomatic move reflects India’s consistent position on the Russia-Ukraine conflict. While maintaining relations with both countries, India has repeatedly called for dialogue, a peaceful resolution to the conflict, and the protection of civilians and commercial vessels under international law.

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