India better placed in protecting investor interests
Washington: India might have been ranked lower when it comes to overall ease of doing business, but the country is a much better place in terms of protecting investor interest and companies getting credit for their activities.
The latest 'Ease of Doing Business' report prepared by the International Finance Corporation and the World Bank has ranked India at 134th position among 189 economies. The country's ranking has slipped from last year's 131st spot.
However, India has fared better in the areas of protecting investors and companies getting credit.
When it comes to 'protecting investors', the country is at 34th position while it is ranked 28th in terms of 'getting credit'.
The report titled 'Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises', ranks countries on the basis of 10 factors. These are starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.
However, among other parameters, the country is ranked lower at 179th spot in terms of starting a business and at 182nd position when it comes to dealing with construction permits.
"In?2012/13, 114?economies implemented?238?regulatory reforms making it easier to do business ? 18 percent more reforms than in the previous year," The latest report has documented 238 business regulatory reforms worldwide last year although there are no specific details about India on this front," the report noted.
Meanwhile, India's distance to frontier (DTF) score improved to 62.74 percentage from 61.67 registered last year.
The DTF measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the topics included in Doing Business.
An economy's distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier.