Chennai:  Doing business in India has become easier with the country implementing 17 regulatory reforms, states a new joint study by International Finance Corp (IFC) and World Bank released on Tuesday.

However, when it comes to starting a business in India, the report said the country's ranking was 173 out of 185 countries.

According to the report, India has improved the regulatory environment for local entrepreneurs more than any other economy in South Asia since 2005.It has implemented 17 institutional or regulatory reforms, making it easier to do business.

Among other things, India has reduced the time required to obtain a building permit by establishing strict time limits for preconstruction approvals. The report said economies of South Asia have implemented 65 regulatory reforms to make doing business easier.

The study assesses regulations affecting domestic firms in 185 economies and ranks the economies in 10 areas of business regulation, such as starting a business, trading across borders, and resolving insolvency.

The report also records regulatory reforms in those areas in the year from June 2011 to June 2012.The report finds that India is the first economy in the region to make dealing with construction permits easier for local firms since 2005."India stands out in the region as the economy that has improved its business regulations the most since 2005," said Augusto Lopez-Claros, director, Global Indicators and Analysis, World Bank Group.

"After establishing its first credit bureau in 2004, India focussed mostly on simplifying and reducing the cost of regulatory processes in key areas such as starting a business, paying taxes, and trading across borders. These efforts notwithstanding, further progress is needed in coming years to release the vast potential of India's private sector," Lopez-Claros said.

On taking into account various parameters, India continues to be ranked at 132 out of 185.Globally, Singapore tops the global ranking on the ease of doing business for the seventh consecutive year.

(Agencies)

Latest News  from Business News Desk