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Posted Date: 08-11-2017 Posted By: user

India had many reasons to celebrate recently. Other than the Moody’s rating, India demonstrated a sensational drift in the Ease of Business rating by jumping 30 spots to secure a seat amongst the top-100 nations.

It is the biggest leap so far by our country and a special achievement indeed. Not only because it is the first time we have done this but also because there have been many questions raised by the economists, politicians, and business community post demonetization and GST.

The report clarifies all the doubts about the international acceptance of these decisions. Since the rating is given by World Bank, there is absolutely no reason to question it.

The index uses 10 specific parameters to evaluate 190 countries. India has shown improvement in six out of ten indicators which is quite impressive.

From all standards; it is a remarkable achievement. No wonder it gets praise worldwide.

How is it significant for SMEs?

It is a big motivating factor indeed for those who want to launch a new business. Especially, Small and Medium Enterprises (SMEs) face more hurdles while getting necessary approvals to start the business.

Big corporate houses have a closer relationship with the political parties and bureaucracy as compared to SMEs. Hence, they get permits, no objection certificates or other approvals more easily.

However, when the Ease of Business ranking says that India has improved a lot, then we can assume that the path is smoother and clearer for small entrepreneurs.

The report says that India is one of the few economies that have improved because of the structural reforms.

We must remember that the rating doesn’t consider GST because it was not implemented when the data was gathered by World Bank.

Experts feel that the next year’s ranking may improve further because GST is amongst the best reforms that happened in India post-independence.

SME owners are more than happy to see the improvement

For those who own SME business or aspire to be a successful entrepreneur, it is an enthusiastic moment. After the initial setback and aftermaths of demonetization, SMEs can expect a great time now.

As the government assures that the reforms will continue in the coming years, India is certainly going to be a business-friendly country.

The rating is the result of efforts taken by the government in the past few years. It will stop the criticism and doubts about the economic reforms and changes.