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India jumps 56 spots in global indices for its ability to resolve bankruptcy cases

India jumps 56 spots in global indices for its ability to resolve bankruptcy cases
India1 min read

  • India jumps 14 spots to rank 63rd in the World Bank’s Ease of Doing Business Report 2020.
  • It is among the top 10 countries which showed progress for the third consecutive year.
  • In 2019, India stood at 77th position in the Ease of Doing Business ranking — and has improved 67 spots in last three years.
India jumps 14 spots to rank 63rd in the World Bank’s Ease of Doing Business Report 2020. It has shown improvement in seven of the 10 indicators, adapting to international practices. That makes the country among the top 10 countries which showed progress for the third consecutive year.

In 2019, India stood at 77th position in the Ease of Doing Business ranking — and has improved 67 spots in last three years. According to the resolving insolvency index, India’s ranking improved 56 spots to 52nd position in 2019, compared to 108th in 2018.

This may be attributed to the government initiatives. It recently announced amendments in the Companies Act and set up a Central Registration Centre for companies to reserve their names under the act within two days which earlier took 15 days.

“In the last three years more than 1,25,000 companies have been incorporated every year in the country in this manner, as compared to 50-60,000 companies in earlier years,” the Ministry of Corporate Affairs said in a release.

On the other hand, the startup ecosystem in the country too has improved significantly. According to government data, over 21,000 startups have been recognised under the Startup India Initiative — and almost 3,000 of them were added in 2019.

The government also relaxed the minimum shareholding value in the startups to 25% from 50%, under the Income Tax Act. This has significantly improved the country’s ranking on the Global Innovation Index to 52th — from 81st four years ago.

See also:
Narendra Modi will use the jump in India's ease of doing business ranking to shut up his critics

Over 14,000 prosecutions withdrawn under cos law

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