Biz ranking to send positive signal to investors: Industry

New Delhi: The improvement in India's ease of doing business ranking proves the reform agenda undertaken by the Modi government is bearing fruit and will send a positive signal to investors, India Inc said Wednesday.

Anticipating that India's ranking will get better in the future, industry bodies however, said that "a lot more needs to be done" to unshackle the laws which are creating problems, be it in taxation, land acquisition, clearances and Inspector Raj.

India now ranks 130 out of 189 countries in the ease of doing business, moving up 12 places from last year, according to a World Bank report.

"It is a very positive development which will send a good signal to the investors and will put a stamp on the measures that are being undertaken by the Government both at Centre as well as the state level for removing the irritants to create conducive environment for doing business," Assocham Secretary General D S Rawat told PTI.

"The improvement in India's ranking shows Government's efforts in enhancing ease of doing business and providing an enabling environment for growth of industry has yielded results," Ficci Secretary General Didar Singh said.

"Various reforms have been taken for simplification of rules, procedures and compliances and many more are underway. The Government is proactively working with the states in streamlining various processes and we are confident that much further improvement will be seen in years ahead," Singh added.

CII Director General Chandrajit Banerjee said it clearly reflects the large scale and fast paced reforms for improving the regulatory environment and streamlining of processes as part of the Government's Ease of Doing Business campaign.

"The improvement in rankings by 12 places is an exceptional feat given that large economies do not move more than 10 places in rankings in one year," Banerjee said.

"In all the actions taken by the Government over the last year there is a clear pro-development pattern emerging, which is making India a preferred destination for doing business," he added.

Harish HV, Partner, Grant Thornton India said the government must also address the need to significantly reengineer the legal system as one thing India has fared very badly is on enforceability of contracts to ensure fair and speedy justice and predictability of the business environment.

"We believe that India can easily reach double digit ranking in next year's survey," he added.

China is ranked 84 and Pakistan is at 138th place. Pakistan in fact has slipped 10 spots from 128 last year while China has moved six spots in a year from 90 since the last report.

The World Bank said India, which has a global ranking of 130, implemented two reforms during the past year.

For example, in starting a business, India eliminated the requirements for a paid-in minimum capital and a certificate to commence business operations, significantly streamlining the process for starting a business.