Claims of the Government for improve in economy of India stands nowhere: FOPSIA

(By Badish Jindal, President, FOPSIA)
Federation of Punjab Small Industries Associations (FOPSIA)strongly condemns the statement of Mr Narinder Modi & Mr Arun Jaitely regarding the World Banks statement on Ease of Doing Business for improving the ranking of India from 130 to 100 among 190 economies.
Both claimed, “Prime Minister Narendra Modi said the historic jump in the rankings was the outcome of the all-round and multi-sectoral reform push of Team India. “Over last 3 years, we have seen a spirit of positive competition among states towards making business easier. This has been beneficial” Modi said”.
But the fact is that report doesn’t shows any much progress in main factors of doing business rater the ranking decreased in main sectors of doing business as compared to last year reports.
The Claim of Ludhiana toping in doing business among 16 cities of India is also based on the data collected by world Bank in the year 2009. Even in this report to the ranking of Ludhiana is around 7-9 in main sectors of Doing Business among 16 cities of India. Further Ludhiana stands at number 11 in registering property and at number 12 in exports among 16 cities. Ludhiana was just topper in ways of collection of taxes in the country as per this report.

FOPSIA’s findings on World Banks Doing Business 2018:
The date collected just from Delhi & Mumbai and even there is a big difference in the data of both the states, to analyze the economy of India on the basis of two developed cities is merely eyewash by the World Bank.
The data is prior to implementation of GST in India and doesn’t contain any impact of local issues such as recession or demonetization.
Even in South Asia the ranking of India in major sectors of doing Business in not much appreciating as the country like Bhutan stood first in the World Bank Report. India stands at number 8 in starting a business among 8 countries of South Asia. Stood at number 7 in construction permissions number 4 in trading across the borders and number 5 in enforcing contracts among 8 countries of south Asia.
In major sectors the position of India is still critical among 190 countries of the world.
Starting a Business :
India still stands on 156 Rank for starting a business in the world whereas last year its ranking was 155. Where as its arch rival China’s Ranking is 93 and Pakistan’s ranking is even ahead of India at 142.
Dealing with Construction:
In the other main aspect of Business in Construction India still stands at number 181 among 190 countries. It requires 37 procedures and takes 128 days to get all construction related permissions in India whereas Pakistan still stands at number 141 in this category.
Registering Property:
The ranking of India fell down badly in this sector from 138 previous year to 154 this year. It still takes 8 procedures and 53 days for registering a property in India.
Trading across the Borders:
The ranking of India fell down from 143 to 146 in this important sector which shows that export procedures are more tough as compared to earlier year.
Getting Electricity:
India’s also lost its place as its world ranking decreased from 26 to 29 in the world. The electricity holds a major role in doing business.
Enforcing Contracts:
India’s ranking in the world in this sector is 164 where as China stands at number 5 in enforcing the contracts in their country. Report says that getting justice is more delayed in India as number of days increased from 1420 to 1445 for settling a case in India. Further it says that the cost of justice is too high as it takes 31% of the total claim.
Protecting Minority Rights:
Position in world : 13 in year 2017 report
Position in world : 4 in year 2018 report
Paying Taxes:
Position in world : 172 as per 2017 report
Position in world : 119 as per 2018 report
(As per report prior GST number of taxes decreased from 25 to 14 which is actually not a correct figure) But report says still it takes 214 hours to deposit all taxes in India per year.
Resolving Insolvency:
Position in world : 136 as per 2017 report
Position in world : 103 as per 2018 report.
(this is mainly due to the increasing NPA’s of the Banks as banks are forced to settle the accounts for saving their own skins. But Pakistan at 82 position and China at 56 are much ahead of India in this sector.
Getting Credit:
Report says India improved in this sector and its raking came down from 44 to 29 whereas the fact is that India’s Banking financial position gets worst in Last year due to increase in NPA, even in its report the RBI was worried about the lending to the MSME sector by Banks. So the figures in this regard are also not that correct.
On such grounds even the higher ranking of India cannot improve the quality of Doing Business in India. So the claims of the Government for improve in economy of India stands nowhere.

Thursday, November 2, 2017