With a population of more than 1.2 billion, India is the world’s largest democracy. Over the past decade, the country’s integration into the global economy has been accompanied by economic growth. India has now emerged as a global player.
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New Delhi, October 29, 2014—A new World Bank Group report (June ’13- May ’14) finds that India is among the 20 economies worldwide improving the quality of their business regulatory environment the most... Show More + in the past year. India implemented regulatory reforms in three areas measured by the report, yet challenges persist for small and medium entrepreneurs.Released today, Doing Business 2015: Going Beyond Efficiency (June ’13- May ’14) states that India made starting a business easier in the past year by considerably reducing the registration fees. In addition, it made obtaining a new electricity connection less costly by reducing the security deposit. The government also strengthened minority investor protections, by requiring greater disclosure by board members and introducing additional safeguards for shareholders of privately held companies.As India continues to improve its regulatory practices, areas that need attention are the time taken to enforce contracts and the cost of obtaining Show Less -
Implementing GST and dismantling inter-state check posts are the most critical reforms needed for Indian manufacturing New Delhi, October 27, 2014 – As economic reforms gain momentum, India’s growth... Show More + is likely to accelerate towards its high long-run potential. Measures such as a national Goods and Services Tax (GST), accompanied by a dismantling of inter-state check posts, can be transformational and significantly improve the domestic and international competitiveness of Indian manufacturing firms, said the latest India Development Update of the World Bank. According to its estimates, simply halving the delays due to road blocks, tolls and other stoppages could cut freight times by some 20-30 percent and logistics costs by an even higher 30-40 percent. This alone can go a long way in boosting the competitiveness of India’s key manufacturing sectors by 3 to 4 percent of net sales, thereby helping India return to a high growth path and enabling large scale job creation.Accordin Show Less -
With economic reforms gaining momentum, India’s long-term growth prospects remain bright, says the World Bank’s India Development Update, a biannual analysis of the Indian economy.The report finds that... Show More + growth has rebounded significantly due to strong industrial recovery. Capital flows are back signaling growing investor confidence, the exchange rate has stabilized, and financial sector stress has plateaued. Economic growth is expected to rise to 5.6 percent in FY15, strengthening to 6.4 percent in FY 2016 and 7.0 percent in FY 2017.Although these projections could face risks from external and domestic shocks in the short term, downside risks can be offset by further progress on the reform agenda.Implement GST and dismantle inter-state check postsImplementing the Goods and Services Tax (GST), for instance, can transform India into a common market and dramatically boost the competitiveness of the manufacturing sector. This sector’s share in India’s GDP – at some 16% - has remained Show Less -