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Is doing business in India really easier now?

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Ease of doing business

Prime Minister Narendra Modi’s efforts in building India’s global appeal for investors seems to have finally yielded returns in terms of the country’s performance in the World Bank Doing Business rankings. India witnessed its highest-ever jump of 30 places in the rankings, reaching the 100th place among 190 countries. Subsequently, it also joined the list of top 10 improvers for the first time and became the first South Asian country to achieve the feat.

The World Bank measures this in terms of a Distance to Frontier (DTF) metric, which shows the distance of the economy from the best performer in each category on a scale of 0 to 100, with the latter representing the frontier. India has shown a drastic improvement of 4.71 points over the last year from 56.05 to 60.76. To put things in perspective, China has witnessed an increase of 0.40 points.

India’s performance has been impressive by any standard. It has moved closer to the global standards in nine of the ten parameters on which the Doing Business rankings are based and has enforced reforms in eight of these categories over the last year. The three key reforms among these were resolving insolvency, ease of paying taxes online and protection of minority investors. Despite these improvements, the general sentiment has been to dismiss the rankings mainly for the flaws in its methodology.

First, the rankings are based on perception surveys of few entrepreneurs or professionals based on questions that are mostly subjective in nature. Second, they are not even based on the economic conditions of the entire economy but on one or two cities within a nation. For India, it is based on Delhi and Mumbai alone. However, the critics miss the point.

If India performs poorly even on such a limited study that chooses the best cities in the country, it speaks volumes of the business conditions across the country and is indicative of the scope of improvement that remains. Moreover, rankings are relative by definition and since the World Bank chooses a maximum of two cities for other countries as well, it should depict a near accurate performance of any country on a relative scale. Therefore, any improvement up the ladder cannot be summarily dismissed.

Further, reforms considered by the World Bank include a mix of central and state initiatives. Passing of central legislation like the Insolvency and Bankruptcy Code, 2016, that helped India jump from 136 to 103 in the “resolving insolvency” parameter have pan-India benefits and are not just limited to Delhi and Mumbai. Therefore, it would be incorrect to presume that merely focusing on a few cities is disassociated from reality even though the actions of state governments are not reflected.

Incidentally, India performs poorly in parameters where state government interference is maximum: Getting an electricity connection, starting a business and registering a property. This underlines the importance of policy coordination between the states and the Centre. Nevertheless, credit needs to be given where it is due for an improvement in rankings majorly driven by reforms undertaken by the central government over the last few years. It must be noted that the rankings have not taken into account the implementation of the Goods and Services Tax (GST). Therefore, considerable potential remains for further improvement.

But it should also be kept in mind that these rankings are not an end in themselves and are far from perfect. A lot of it is based on policies which are on the books and do not necessarily capture the real experiences on the ground. After reforms are initiated to ease the business environment, the main task of implementation begins where the real problems emerge. For instance, the World Bank applauded India’s efforts at increasing access to credit with the adoption of a new insolvency and bankruptcy code. However, the parameters fail to recognise the problem that India is going through one of its slowest phases of credit growth and that banks are wary of lending so easily.

Moreover, a lot more parameters, apart from the ones considered in the Doing Business rankings, need to be considered to understand the business environment in India. The country’s dismal performance in the Heritage Foundation’s Index of Economic Freedom (in which it is ranked 143, below most of its South Asian neighbours) and Transparency International’s Corruption Perception Index (ranked 79th), reflect the areas that the country still needs to improve upon to better the business environment.

Therefore, the chest-thumping around the Doing Business ranking improvements needs to be seen in conjunction with these factors and worked upon to ease the problems faced by common businessmen. A premature celebration can be counter-productive.

(Amit Kapoor is chair, Institute for Competitiveness, India. The views expressed are personal. He can be contacted at [email protected] and [email protected] Chirag Yadav, senior researcher, Institute for Competitiveness, India has contributed to the article)

Business

Black Friday Deals: Realme to bring offers on Realme X3 Superzoom, X50 Pro, Buds Air Neo and more

The Black Friday sale will take place on Realme’s online store, Flipkart and Amazon.

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Realme X2 Pro

Over the last few years, online and offline retailers have been offering their Black Friday deals for almost an entire week ahead of Thanksgiving, and some of these deals and offers last well after the Cyber Monday sale.

Black Friday Sale is here!!

After Xiaomi, handset maker Realme on Thursday announced a Black Friday Sale that would arrive with several offers and discounts on a range of its products. The Black Friday Sale would be live for 24 hours and would start November 27, 12:00 AM. The sale would see massive discounts on a range of Realme smartphones including Realme 6i, Realme 6, Realme X3 Superzoom and X50 Pro, and various AIoT products such as Realme Buds Classic, Realme Smart Watch, Realme Buds Air Neo and Realme Smart Cam 360°.

“Realme would also be hosting the ‘Realme Days’ sale offering similar discounts on its own website Realme.com, Flipkart and Amazon.in,” the company said in a statement.

The Black Friday sale will take place on Realme’s online store, Flipkart and Amazon. In addition to the discounts, SBI credit cardholders can avail of 5% cashback on EMI transactions.

  • Realme is offering discounts from Rs 1,000 up to Rs 7,000 for its Black Friday sale. Realme X50 Pro has received the biggest discount of Rs 7,000 bringing its price down to Rs 34,999 from Rs 41,999. Realme X50 Pro with 12GB RAM and 256GB storage also gets a discount making its offer price Rs 40,999.
  • Realme X3 SuperZoom will be available with a Rs 4,000 discount on all three variants. Realme X3 has also received a Rs 3,000 discount on both its variants. Realme C3, Realme 6, Realme 6i, and Narzo 20 Pro can be purchased with a discount of Rs 1,000.
  • In the AIoT portfolio, Realme Buds Air Neo would be available at a discounted price of Rs 1999, along with the Realme Buds Wireless Pro for Rs 3199 and Realme Buds Air Pro at a special price of Rs 4299. These offers would be applicable on all purchases made through Realme’s official website Realme.com.
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Amazon Quiz Answers Today, November 25, 2020: Answer and Win Rs 5000 Pay Balance

Amazon quiz Answers Today, November 25, 2020: The Amazon Quiz for November 25, 2020, is live and today you have the chance to Win Rs 5000 Pay Balance.

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Amazon

Amazon quiz Answers Today, November 25, 2020: The Amazon Quiz for November 25, 2020, is live and today you have the chance to Win Rs 5000 Pay Balance. The trivia quiz gives a chance to users across the country to win exciting gifts every day by answering a set of simple questions.

After giving the right answers to the questions users can win mobile phones, other gadgets, and Amazon Pay Balance. E-commerce giant Amazon never disappoints its users and today’s gift is special for all the online shopping lovers.

Today’s Amazon Quiz Information

Today’s Amazon Quiz Prize: Win Rs 5000 Pay Balance
Amazon Quiz Date: November 25, 2020:
Amazon Quiz Time: 8 am–12 pm
Winners List Declaration Date: To be announced

Answers for today’s Amazon quiz contest- November 25, 2020

Q1- Char-chaporis are shifting riverine islands of the Brahmaputra located in which Indian state?
Ans- Assam
Q2- In 2020, who became the first bowler to pick up a wicket off the first ball in an IPL final?
Ans- Trent Boult
Q3- Alu, Bittu and Sattu are characters in which recent Rajkummar Rao movie?
Ans- Ludo
Q4- These objects are used to do what kind of activity?
Ans- Surfing
Q5- In which city also known as the ‘Blue City’ is this picture taken?
Ans- Jodhpur

How to Play Amazon Quiz Contest Daily?

1. Download the Amazon India App from Google Play Stores or Android App
2. Sign up or log in to your Amazon account
3. Once login you can check the homepage banner of the App click on Amazon Quiz for today.
4. Start playing the Amazon quiz contest.

Where to find the latest answers for Amazon Quiz?

You can find all the right Answers for Amazon Quiz here. With Amazon Quiz you can win various exciting prizes. Choose the right answers for the Amazon daily quiz and you can be the lucky winner. The Amazon Quiz contest is live at 8:00 AM and it ends at 12:00 PM.

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Congress opposes move to let corporates enter banking sector

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chidambaram

New Delhi: The Congress on Tuesday opposed the proposal to allow corporates and business houses enter the banking sector, contending that this move will leave the depositors at their mercy as it happened in the case of Yes Bank and Laxmi Vilas Bank.

Addressing a press conference, former Finance Minister P. Chidambaram said: “The Congress party condemns the proposal and demands that the government, unequivocally and forthwith, declare that it has no intention of pursuing the proposal.”

“We call upon all the people of India and all political parties and trade unions to join us in resolutely opposing the retrograde idea of allowing corporates and business houses to enter the banking sector and set up banks,” he added.

The Congress alleged that the proposal, ostensibly based on a report of an RBI Internal Working Group, has the fingerprints of the Modi government written all over it.

This proposal, along with some other recommendations, is part of a deeper game plan to control the banking industry, it said, claiming that the proposal, if implemented, will completely reverse the enormous gains made in the last 50 years of retrieving the banking sector from the clutches of business houses.

Noting that all over the world, especially in developed economies, three principles govern banking — broad-based shareholding reflecting shareholder democracy, strict separation of ownership and management with ownership with shareholders and management in professional hands, and prohibition of connected lending, Chidambaram said that all three will be thrown out of the window if corporates and business houses are allowed to set up banks.

“Bank funds belong to the depositors who are the people of this country. As a proportion of total deposits, the equity of a bank is minuscule. The total deposits in the banking industry is of the order of Rs 140 lakh crore… If business houses are allowed to own banks, they will, with a small equity investment, control very large amounts of the nation’s financial resources. This must not happen and the Congress will strive its utmost to ensure that this will not happen,” Chidambaram said.

He said that it “is shocking that such an idea should have been presented to the people as though it has the imprimatur of experts and the endorsement of the RBI”.

“Just as the RBI was the cat’s paw of the government in the saga of demonetisation, the RBI is being used by the government to push through its dangerous agenda,” he said.

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