1.

IMPORTANCE OF EASE OF DOING BUSSINESS

In modern times, the role of the private sector in the economic growth of any

nation cannot be underestimated. The growth of businesses in any economy

provides support to governments in addressing and overcoming economic

challenges faced by the society like job creation and financial resources generation,

and in improving the standard of living of the citizens. The interdependence of the

business and the government gets elucidated by the fact that the growth of a

business is affected by many external factors including those under the control of

the government. Internal factors of a business entity do play a vital role in its

performance, but the external elements are studied under various surveys because

these factors are beyond the control of the organisation.

The importance of various business rankings has grown over the years as these

have become important indicators for companies choosing countries to invest.

Generally, another set of external factors covering the natural physical

environment like climate, natural resources, or natural disaster proneness are kept

out of the purview while assessing the business environment of a place.

Accordingly, the factors studied for assessment and ranking purpose are those

which emerges from political set up, economic policy, socio-cultural values,

technological level, and legal system. No doubt, the significance of each factor to

companies varies, depending on the activity of the business.

 2. ATTRACT FOREING CAPITAL

First, capital should flow from rich countries to poor countries — because in the

neoclassical model, the marginal product of a unit of capital is much higher in poor

countries that are typically labor abundant and capital poor. Second, more

productive poor countries should attract more foreign capital because they have the

ability to use it better. And third, because it adds investible resources, and because

of the collateral benefits of foreign capital such as bringing in new technologies of

production and control, greater use of foreign capital should be associated with

more growth.

What is the evidence? In what follows, I will show you evidence that capital does

not flow from rich to poor countries in the relative quantities it used to —

surprising given that financial markets have been getting better. Moreover, it is not

also true that amongst non-industrial countries, the most productive get the most

capital inflows. Finally, for non-industrial countries, there does not seem to be a

positive association between growth and reliance on foreign capital. In fact, there

is generally a negative correlation suggesting that non-industrial countries that are

more reliant on foreign capital grow less. For industrial countries, though, there is

a positive association.

3 ECONOMIC DEVELOPMENT
Economic Development is programs, policies or activities that seek to improve the

economic well-being and quality of life for a community.

What “economic development” means to you will depend on the community you

live in. Each community has its own opportunities, challenges, and priorities. 

Your economic development planning must include the people who live and work

in the community.

4 CHOICE OF PRODUCT FOR CUSTOMER

You can dynamically customize the users experience based on prior searches, page

views or created wish lists to keep them engaged and browsing. It also lets you

increase the upselling potential by suggesting complementary products and

accessories.

The success of this approach is strongly tied to your ability to proffer relevant

products and solutions. When you’re looking for a new face cleanser for mature

skin and a teenager zit-action wash pops up – not ideal. In fact, this kind of wild,

random approach is likely to turn customers off and make them doubt your

authority. Putting time into devising a useful algorithm and leveraging big data will

reap the rewards.

5 TECHNOLOGY

Technology today is evolving at such a rapid pace, enabling faster change and

progress, causing an acceleration of the rate of change, until eventually, it will

become exponential. However, it is not only technology trends and top

technologies that are evolving, a lot more has changed this year due to the outbreak

of COVID-19 making IT professionals realize that their role will not stay the same

in the contactless world tomorrow. And an IT professional in 2020-21 will

constantly be learning, unlearning, and relearning (out of necessity if not desire).

What does this mean for you? It means staying current with new technology

trends. And it means keeping your eyes on the future to know which skills you’ll

need to know to secure a safe job tomorrow and even learn how to get there. All

bows to the worldwide pandemic, most of the global IT population is sitting back,

working from home. And if you wish to make the most of your time at home, here

are the top 9 new technology trends you should watch for and make an attempt at

in 2021, and possibly secure one of the jobs that will be created by these new

technology trends.

6 ENCHANCEMENT OF FOREIGN EXCHANGE

To increase the value of their currency, countries could try several policies.

1. Sell foreign exchange assets, purchase own currency

2. Raise interest rates (attract hot money flows

3. Reduce inflation (make exports more competitive

4. Supply-side policies to increase long-term competitiveness.

7 COMPETITVE ABILITY OF COMPANY

Gaining a competitive advantage can set you apart from other applicants during a
job search or position you for rapid career advancement and additional
compensation. And while it’s important, working harder isn’t the solution to
gaining a competitive edge. You must work strategically to lift yourself above the
competition. Here are the steps you can use to gain a competitive advantage.
1. Maintain your skills.

2. Add value to the company.

3. Develop new skills.

4. Improve interpersonal skills.

5. Communicate effectively.

6. Exceed expectations.

8 REDUCE DEPENCDENCY

Oil Industry Development Cess at the rate of 20% ad valorem is applicable on

crude oils produced from pre-NELP blocks and at present, there is no such

proposal to amend the rate of cess.

Ministry of Petroleum and Natural Gas has taken several steps inter alia promotion

of renewable and alternate fuels like ethanol, second generation ethanol,

compressed bio gas and biodiesel, promotion of natural gas as clean fuel/feedstock

in the country with a view to move towards a gas based economy, refinery process

improvements, promoting energy efficiency and conservation, efforts for

increasing production of oil and natural gas through various policies under
Production Sharing Contract (PSC) regime, Discovered Small Field Policy,

Hydrocarbon Exploration and Licensing Policy, Setting up of National Data

Repository, etc. Government has also provided functional freedom to National Oil

Companies and wider private sector participation by streamlining approval

processes including electronic single window mechanism. Ministry of Petroleum

and Natural Gas is also working in collaboration with various Central Government

Ministries/stakeholders to make efforts to achieve reduction in import dependency

on oil.

Improves competitive ability of companies

Focus on Core Competencies

Today, companies in every industry are racing to add greater value than their
competitors. To achieve this, many are delving deeper into their core competencies
and outsourcing more and more non-core functions to other producers.

This strategy is enabling companies to focus on what they do best. Thus, if a

company’s produces engines, the key is to concentrate all efforts of producing the
best engines in the industry and subcontract all non-essential functions to other
companies.

Become More Customer Centric

Consumers in every country typically have access to a greater variety of products

and services at increasingly attractive prices. As a result, producers of both goods
and services need to become more customer centric and cater to changing buyer
needs and desires to a greater extent than ever.

This may include offering faster delivery times and shorter customized production
runs, as well as emphasizing customer loyalty through improved customer support,
branding strategies and social media.

Reduce dependance on import

Taxes and quotas

Governments decrease excessive import activity by imposing tariffs and quotas on

imports. The tariffs make importing goods and services more expensive than
purchasing them domestically. Imposing tariffs is one way a country can work to
improve its balance of trade.

Subsidies

Governments provide subsidies to domestic businesses in order to reduce their

business costs. This helps bring down the price of domestic goods and services,
hopefully, encouraging consumers to buy domestic rather than imported goods. By
enabling domestic producers to produce goods less expensively and, thus, lower
their prices, subsidies may also increase exports as the cheaper goods become more
attractive to foreign buyers.

Encourages entrepreneurship

CREATE A STUDENT ENTREPRENEUR HUB

Make sure you have a Hub / Incubator / Center for Innovation or a similar facility
on campus designed to support student entrepreneurship activities. Some schools
already have entrepreneurship facilities in place but make sure they are designed
with students in mind.

SET UP CAMPUS MEETINGS

It is important for a college to promote student entrepreneurship program on a

regular basis to build campus awareness. This can be done via regular informal
student meetups meetings which introduce interested students to the
entrepreneurship program. These meetings are also useful for students to connect
with each other and form a business team.

Enforcing contract

The importance placed by the Modi Government on these, and India's overall
dismal performance has forced the government to take several measures, especially
in the field of enforcement of contracts.

The Indian Contract Act, 1872 (Contract Act) and the Specific Relief Act, 1963
(Act) are the two primary legislations governing the enforcement of contracts
between parties. While the Contract Act lays down the general principles
governing contracts and levy of damages for breach thereof, it also provides for an
exception of awarding specific relief in the form of specific performance of
contracts.

The Act, as is the common law position on this, originally provided for specific
performance as a discretionary relief by Courts upon satisfaction of the
“inadequacy test”, i.e., when it was proved that damages will be inadequate
compensation for the breach. Damages remained the “usual, normal and natural
remedy” for broken contracts and were payable in lieu of, or even in addition to,
performance of the contract.

The Ease of Doing Business rankings released annually by the World Bank
currently ranks India at 163 in Enforcing Contracts. India has managed to retain its
163rd rank among 193 countries in honoring business contracts. In 2018, it had
secured the same rank. India has not shown much improvement in the area of
contract enforcement.

As we look at shifting supply chains from China, it is important that we focus on

some of the issues that have prevented us from improving our contract
enforcements. This is important to instill investor confidence as it signals
predictability and commercial viability of the transactions.

India is known for backlogs in its judicial system which has been a major
drawback for the country from becoming a commercially preferable jurisdiction
for enforcement of contracts and administration of justice. Tribunals were formed
for tackling this problem but with the ever-increasing number of cases, they have
not significantly helped in reducing the burden of the courts. There have been
discussions on increasing the number of benches in various courts and tribunals.
No concrete step has so far been taken in this regard. Vacancies at almost all levels
of judiciary continue to be a hindrance in combating the backlog.

Resolving Insolvency

The World Bank recognized that with the reorganization procedure available,
through the Insolvency and Bankruptcy Code, 2016 (IBC), companies have
effective tools to restore financial viability, while creditors have better tools to
successfully negotiate and have greater chances to realize the money.

In terms of ‘resolving insolvency’, which reflects ease of exit from business,

India’s ranking improved by 56 places to 52 from 108 the previous year. As a
result, the overall recovery rate for creditors jumped from 26.5 cents on the dollar
to 71.6 cents, and the time taken for resolving insolvency reduced significantly
from 4.3 years to 1.6 years.

India is now, by far, the best performer in South Asia on resolving insolvency and
does better than the average for OECD high-income economies in terms of the
recovery rate, time taken and cost of proceedings.

The implementation of the reform particularly regarding court operations and the
application of the law by multiple stakeholders the number of reorganizations in
India has been gradually increasing. As a result, reorganization has become the
most likely procedure for viable companies as measured by Doing Business

1.2.7 Paying Taxes

Importance:

Governments require long-term sources of funding for social programmes and

public investments in order to promote economic growth and development. Health,
education, infrastructure, and other services programmes are critical to achieving
the common aim of a successful, functional, and harmonious community. They
also demand that governments increase income. Taxation is an important part of
the social compact between citizens and the economy since it pays for public goods
and services. The manner in which taxes are raised and spent can have a significant
impact on a government’s legitimacy. Holding governments accountable promotes
efficient tax administration and, more broadly, sound public financial management.

Current Rank – 115

Past – 121

Reasons

The government is a big organization with numerous departments. Each of these

departments employs hundreds of thousands of people. These departments’
overhead costs (which include personnel salaries, energy bills, and other utility
expenditures) are in the hundreds of rupees. Your taxes assist the government in
running these ministries efficiently. The majority of us believe that paying taxes is
a financial burden. It’s critical to recognize that paying taxes is not something you
can do whenever you want; it’s something you should do every year if you’re a
good citizen. This is because the taxes you pay play an important part in the
development of infrastructure not just in your city but also in your country. When
the government announces plans like free medical clinics for rural areas and free
education for schools in remote villages, we all feel good and happy. What sources
of funding does the government use to construct these schools and hospitals? It’s a
result of the taxes we pay. As a result, we must all become socially responsible and
pay our taxes, because doing so benefits someone, somewhere.

1.2.8 Trading Across Border

Importance:
Access to international markets is important to a country’s economic success.
Tariffs are still one of the most extensively utilized governmental devices for
promoting or restricting trade, but their relative importance has waned. One Other
considerations, such as trade-related transaction costs, have surpassed them. For
small traders, logistics and freight costs, as well as customs administrative fees and
border expenditures, have become very crucial. While the importance of small and
medium-sized firms (SMEs) in the broader economy is widely acknowledged,
SMEs have been largely ignored in trade disputes until recently. At the firm level,
the relationship between trade and economic growth can also be observed.
Evidence demonstrates that information transfers from foreign buyers and
competitors assist exporting enterprises enhance their performance.

Current Rank – 68

Past – 80

Reasons

Doing Business keeps track of the time and money spent on the logistics of
exporting and importing goods. Doing Business assesses the time and cost
(excluding tariffs) connected with three sets of procedures within the entire process
of exporting or importing a shipment of goods: document compliance, border
compliance, and domestic transport. Despite the fact that Doing Business gathers
and publishes statistics on the time and cost of domestic transportation, these data
are not included in computing the score for cross-border commerce or evaluating
the ease of cross-border trading. The fundamental reason for this is that several
external factors influence the time and expense of domestic transportation—Such
factors as the geology and terrain of the transit territory, road capacity and general
infrastructure, proximity to the nearest port or border, and the placement of
warehouses where transported products are held are not directly influenced by
trade rules and reforms. Economies with the most efficient trading environments
have a number of characteristics in common. They allow traders to electronically
communicate information with customs and other regulatory bodies. They also use
risk-based evaluations to reduce customs clearance delays by limiting physical
inspections to a small fraction of shipments. Similarly, these economies are more
likely to trade inside customs unions or participate in other types of bilateral and
multilateral trade agreements, reducing the time and expense of border procedures.
So, these are some reasons for Trading across border.

STARTING A BUSINESS
According to a World Bank report, India ranks 63rd in Doing Business 2020. The
Indian government introduced a series of innovative regulatory reforms in 2014 to
make doing business in India simpler. The programme contributes to the creation
of an atmosphere that is more conducive to business. For the third year in a row,
India has risen 67 places in just three years, placing it among the top ten improvers
in the world.
Not just for investments, but also for doing business, India has emerged as one of
the most profitable countries on the planet. In 2014, India was ranked 142nd; in
2019, it was ranked 63rd, a 79-position increase in just five years. India is ranked
136th in this category, Permanent Account Number (PAN), Tax Deduction &
Collection Account Number (TAN), and Director Identification Number (DIN) all
combined into one form i.e.  For businesses with an allowed capital of up to Rs. 15
lakh, there would be no incorporation cost.
DEALING WITH CONSTRUCTION PERMITS
One of the most important characteristics in the list of factors to consider while
doing business, and India has performed well in this area.
Previously, India was ranked 52nd; currently, it is ranked 27th, and the Municipal
Corporations of Delhi and Greater Mumbai have implemented a fast-track
approval system for issuing construction licences, which includes elements such as
the Common Application Form (CAF),. The use of a digital signature and online
review of building blueprints are also possible options. In Mumbai, the permission
duration was lowered from 128.5 days to 98 days, while in Delhi, it was cut from
157.5 days to 113.5 days, and this modification occurred between 2018 and 2020.
 In Mumbai, the total number of processes was decreased to 19 while in Delhi, it
was lowered to 11. Another significant difference is that the cost of getting
building licences has decreased from 23.2 percent to 5.4 percent of the economy’s
per capita income.
 
ELECTRICITY
This criterion also aided India in its climb up the rankings. On this crucial metric,
India is currently among the top 25 countries in the world.
If no Right of Way (RoW) is necessary, the connection is made within 7 days; if
RoW is required, the connection is made within 15 days. Cumulative service line
In Delhi, development costs are currently restricted at USD 339.84. 27 The number
of documents needed to obtain an electrical connection has been decreased to two,
and physical documents are no longer acceptable. In Delhi, the total number of
processes was decreased to three, and in Mumbai, it was lowered to four.

1.2.4 Registering Property

 Importance
 Enrolled property rights are important to help speculation, efficiency, and
development. Changes in this space altogether diminish the danger of land
redistribution or confiscation, consequently working with more proficient land use,
regardless of whether through venture or by moving area from less to more useful
uses and clients. Therefore, a more noteworthy portion of land whether for
horticulture or development was utilized for financial purposes.
Current rank = 25
Past rank = 22
Reason
India made it simpler to enlist property by digitizing its cadastral records and
setting up an electronic data set for recording the limits of land plots. Digitized
land proprietorship records at the sub-enlistment centre with the goal that a
planned land-purchasers can without much of a stretch confirm land possession
when new exchanges are started on the land. Also, forthcoming area purchasers
with a solitary resource decide land proprietorship by checking the necessary
verifiable documentation. • Digitized land records at all the land records
workplaces in the State can assist with guaranteeing that the essential data on
possession is accessible when giving Property Cards to residents, and for pre-
transformation check of land exchanges. In any case, India actually scores
exceptionally low with regards to enrolling property. The figure has scarcely
improved to 154th. High stamp obligation rates appear to forestall impetus to
underestimate and underreport land exchanges. There stays a ton of unbending
nature in lodging and land that should be changed to improve in this boundary.
 
1.2.5 Getting Credit
Importance
Working together measures the lawful privileges of borrowers and loan specialists
in got exchanges (or insurance) laws and insolvency laws to evaluate how well
these laws work with loaning. These rights matter: moneylenders are reluctant to
give credit in case there is no assurance that they will actually want to authorize
their privileges and gather an obligation or repossess insurance through a
convenient and economical interaction. No place are the outcomes of the shortfall
of such an assurance more clear than in the absence of credit for little and medium-
size endeavours (SMEs) in the creating scene.
Current rank = 25
Past rank = 22      
Reason
With the redesign strategy accessible, through the Insolvency and Bankruptcy
Code, 2016 (IBC), organizations have viable instruments to re-establish monetary
suitability, while loan bosses have better devices to effectively arrange and have
more noteworthy opportunities to understand the cash. Accordingly, the general
recuperation rate for loan bounced from 26.5 pennies on the dollar to 71.6 pennies,
and the time taken for settling indebtedness diminished essentially from 4.3 years
to 1.6 years. India has a high position of 25, however the truth of the matter is that
the banking and monetary area faces rising disease chances and requires supported
change measures to all the more likely dispense assets economy-wide
1.2.6 Protecting Minority Investors
Importance
Quite possibly the main issues in corporate administration is self-managing the
utilization of corporate resources by organization insiders for individual increase.
Related-party exchanges are the most widely recognized model. High possession
focus and casual business relations can establish the ideal climate for such
exchanges, which permit controlling investors to benefit to the detriment of the
organization’s monetary wellbeing whether since organization resources are sold at
an unreasonably low value, resources are bought at an expanded cost or credits are
given by the organization to controlling investors on terms obviously better than
the market offers.
Current Rank = 13
Past Rank = 7
Reason
Minority financial backer assurances can have significant ramifications for firm
valuation. Examination on 539 enormous firms in 27 economies shows that firm
valuation is higher in economies with great financial backer securities than in those
with helpless assurances Other exploration shows that corporate danger taking and
firm development rates are decidedly identified with the nature of the arrangement
of financial backer insurances. Better frameworks might lead companies to
embrace more dangerous however esteem upgrading ventures.