This document summarizes the findings of the World Bank's Doing Business report as it relates to India. It discusses the 10 indicator areas evaluated by the report, including starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency. For each indicator, it provides details on the procedures, time, and costs involved in India, comparing performance between cities like Mumbai and Delhi. It also shows India's rankings compared to other economies. While India performs well in some areas like protecting minority investors, getting credit, and getting electricity, there is room for improvement in others like trading across borders, resolving insolvency, and

1. INDIAN INSTITUTE OF TECHNOLOGY ROORKEE
Presentation On:
Presented By:
Anant Sirohi (15810003)
Arush Jain (15810009)
Doing Business Reports

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TABLE OF CONTENT
• Introduction
• Business Environment
• Doing Business Evaluations Criteria
 Starting a Business
 Dealing with Construction Permits
 Getting Electricity
 Registering Property
 Getting Credits
 Protecting Minority Investors
 Paying Taxes
 Trading Across Borders
 Enforcing Contracts
 Resolving Insolvency
• Conclusion

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INTRODUCTION
 Doing Business sheds light on how easy or difficult it is for a local
entrepreneur to open and run a small to medium-size business when
complying with relevant regulations.
 It measures and tracks changes in regulations affecting 10 areas in the
life cycle of a business.
 In a series of annual reports Doing Business presents quantitative
indicators on business regulations and the protection of property rights
that can be compared across 189 economies.

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 The Doing Business methodology has limitations such as an economy’s
proximity to large markets, the quality of its infrastructure services (other
than those related to trading across borders and getting electricity), the
security of property from theft and looting, the transparency of
government procurement, macroeconomic conditions or the underlying
strength of institutions—are not directly studied
 The data not only highlight the extent of obstacles to doing business,
they also help identify the source of those obstacles

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BUSINESS ENVIRONMENT
 For policy makers trying to improve their economy’s regulatory
environment for business, and to find out how it compares with the
regulatory environment in other economies.
 Doing Business presents results for 2 aggregate measures: the distance
to frontier score and the ease of doing business ranking.
 The ease of doing business ranking compares economies with one
another; the distance to frontier score benchmarks economies with
respect to regulatory best practice, showing the absolute distance to the
best performance on each Doing Business indicator.
 Ease of doing business ranking can show only how much the regulatory
environment has changed relative to that in other economies.

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The 10 topics included in the ranking in
Doing Business 2016
 Starting a business
 Dealing with construction permits
 Getting electricity
 Registering property
 Getting credit
 Protecting minority investors
 Paying taxes
 Trading across borders
 Enforcing contracts
 Resolving insolvency

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India and comparator economies rank
on the ease of doing business

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STARTING A BUSINESS
• Formal registration of companies
• Resources are pooled as several
shareholders join forces to start a
company.

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India’s Ranking

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Starting a business there requires 12.90 procedures, takes 29.00 days,
costs 13.50% of income per capita and requires paid-in minimum capital of
0.00% of income per capita.
What it takes to start a business in India - Mumbai

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DEALING WITH CONSTRUCTION
PERMITS
 Regulation of construction is critical
to protect the public.
 It needs to be efficient, to avoid
excessive constraints on a sector
that plays an important part in
every economy.
 hazardous construction that puts
public safety at risk.
 several assumptions about the
construction company, the
warehouse project and the utility
connections are used.

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Comply with formalities to build a warehouse in India - Mumbai

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Comply with formalities to build a warehouse in India - Delhi

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India’s Ranking

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GETTING ELECTRICITY
 Access to reliable and affordable electricity is vital for businesses.
 Rely on self-supply, often at a prohibitively high cost due to poor power
supply which is very costly.
 First step for a customer is always to gain access by obtaining a
connection.
 Getting electricity there requires 5.00 procedures, takes 90.10 days and
costs 442.30% of income per capita.

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Indicators to measure

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To obtain an electricity connection in India – Mumbai.

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To obtain an electricity connection in India – Delhi.

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India’s Ranking

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REGISTERING PROPERTY
 If property is informal or poorly administered, it has little chance of being
accepted as collateral for loans—limiting access to finance.
 If formal property transfer is too costly or complicated, formal titles might
go informal again.
 Doing Business records the full sequence of procedures necessary for a
business to purchase property from another business and transfer the
property title to the buyer’s name.
 Registering property there requires 7.00 procedures, takes 47.00 days
and costs 7.50% of the property value.

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Indicator Measures

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Register property in India - Mumbai

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Register property in India - Delhi

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India’s Ranking

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Getting Credits
 Effective Credit Information Systems
to lenders.
 Sound collateral and bankruptcy
laws.
 Strength of legal rights index.

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India’s Ranking

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Indicators Analysis

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Protecting Minority Investors
Regulations for precise related-party transactions, clear and effective
disclosure requirements and shareholder participation in company’s
decision making.

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India’s Ranking

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Indicators Analysis

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Paying Taxes
 Ease of paying tax along with the tax
rates and tax administration in the
country.
 Measures the administrative burden
of paying taxes and contributions.
 Information on filling and payments.
 Time taken to comply tax laws.

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India’s Ranking

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Taxes and Contributions (Mumbai)

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Taxes and Contributions (Delhi)

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Trading Across Borders
 Document requirements, custom
procedures, port operations and
infrastructure.
 Time and cost involved in logistical
process of importing and exporting
of goods.
 Time is measured in hours.
 Costs are measured in US dollars
and include insurance cost and
other informal payments.

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India’s Ranking

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Trading Compliance

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Trading Compliance (Mumbai)

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Trading Compliance (Delhi)

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Enforcing Contracts
 Effective and transparent
settlement of disputes.
 Speedy trails for small enterprises.
 Quality of Judicial processes index.
 Adoption of good practices in the
court system.

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India’s Ranking

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Time and Cost Parameters

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Indicators Analysis

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Resolving Insolvency
 Time, cost and outcome of
insolvency proceedings involving
legal entities.
 Recovery Rate
 Liquidation or Debt enforcement
proceedings
 Adoption of internationally
accepted good practices

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India’s Ranking

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Time and Cost Parameters

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Indicators Analysis

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Conclusion
 Currently, India’s rank is 130th in the list of 189 countries.
 India is performing well in:-
1) Protecting Minority Investors- Rank 8
2) Getting Credits- Rank 42
3) Getting Electricity- Rank 70
 There is a lot of scope to improve:-
1) Trading Across Borders- Rank 133
2) Resolving Insolvency- Rank 136
3) Registering Property- Rank 138
4) Starting a Business- Rank 155
5) Paying Taxes- Rank 157
6) Enforcing Contracts- Rank 178
7) Dealing with Construction Permits- Rank 183

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Thank You!!