GST, bankruptcy code important reforms for India: World Bank
New Delhi: The World Bank on Wednesday said introduction of Goods and Services Tax (GST) and bankruptcy code were crucial reforms for India to implement.
World Bank Country Director Onno Ruhl hoped the the Indian parliament would pass the GST bill and also the bankruptcy code in the ensuing winter session.
The GST’s beneficial impact would be seen in 2018 if the law was made in 2016, he told reporters here in connection with the World Bank ranking India 130 out of 189 nations in its report on ‘Doing Business 2016’.
The ranking is based on the experience in two Indian cities of New Delhi and Mumbai.
Ruhl said India improved its ranking to 130 from the earlier ranking of 142 due to factors like implementation of the new Companies Act, reduced procedures in getting power connection and other aspects.
However, he said, India still needs to improve on the issue of enforcing contracts and getting building permits.
According to the World Bank, the new Companies Act made launching business easier by eliminating minimum capital requirement and the need to obtain a certificate to commence business operations, saving entrepreneurs from unnecessary procedures and a five-day wait time.
In both Delhi and Mumbai, the process of getting electricity connection was made simpler and faster.
In Delhi, the process of getting electricity connection was also made simpler and faster.
At the same time, in Mumbai, procedures and time required to connect to electricity were reduced through improvement in internal work processes.