Home / Business / Entity Registration / How to set up in India / Ease of doing business in India

Ease of doing business in India


As per World Bank Report  India ranks 142 out of 189 countries for ease of doing business. I have already written an article about one section of this report ‘ease of starting a business in India’. The Prime Minister’s Office (PMO) has listed out 36 steps to be undertaken by various ministries to improve India’s ranking. In this background, let’s understand where India is lagging behind other countries.


Starting a business – our ranking is 158  out of 189! (Read this article to know more about it doing business in India – Where we stands as per World Bank report).


Dealing with construction permits – 184th rank out of 189! There are totally 27 different procedures to be followed and the average time taken to get all the permits is 162 days (means over 5 months). Some of the permissions (apart from building sanction plan, commencement certificate, occupancy certificate etc) to be taken are –


  • Obtain No  objection certificate (NOC) from Tree authority (at Mumbai)
  • NOC from storm water and drain, sewerage department
  • NOC from Traffic and coordination department
  • NOC from Chief Fire Officer


Getting Electricity – will take on an average 67 days to get the approval.


Similar to the above there are many hurdles to commence business in India. The result is quite evidently shown in the world ranking. We figure in the last 20 countries. Our PM wants India to be in the top 50 countries in the world. So, the PMO has suggested 36 steps to be implemented before the end of January 2015 which may help in improving our ranking. Some of the recommendations are –


  • Reduce number of forms to be submitted in case of import and export from 17 to 3
  • Reduce security deposit to obtain electricity in Mumbai and Delhi
  • No Pollution control board prior permission to get electricity connection in Mumbai and Delhi
  • Common application form and single inspection for all state government registrations
  • Standard sale deed to increase the speed of land registration
  • Digitization of land reports, municipal tax records, sub-registrar data and integrate them
  • Integrate all activities of various agencies at ports for speedy clearance of consignments
  • Online issue of export, import licenses
  • Reduction in the time taken for NOC from Tree authority
  • Issue only one identity number called Unique Identity Number (UIN) (or integrate them) instead of many numbers such as PAN, TAN, CIN, EPF, ESI etc.
  • Simplified insolvency laws


The idea is quite promising. Hopeful of seeing the ideas turn into reality soon


Thought for the day


Simplify your life and eliminate what isn’t necessary


Contact us now

About CA Prasad Chartered Accountant

CA Prasad Chartered Accountant
CA Prasad is a practicing Chartered Accountant and partner in Bangalore -based CA Firm. For further information or query, please email it to [email protected]