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Doing Business in India 2009 Penelope Brook

Doing Business in India 2009 Penelope Brook Acting Vice President, Financial and Private Sector Development The World Bank Group New Delhi, J une 30, 2009. About the Doing Business project.

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Doing Business in India 2009 Penelope Brook

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  1. Doing Business in India 2009 Penelope Brook Acting Vice President, Financial and Private Sector Development The World Bank Group New Delhi, June 30, 2009

  2. About the Doing Business project 10 indicators covering regulations relevant to the life cycle of a domestic small to medium-size firm Focus on smart regulation – efficient, streamlined, accessible Six years (2004-2009) of data collection and benchmarking Impact in informing reforms

  3. More economies reform business regulations • More than 1,000 business regulation reforms tracked by Doing Business since 2004 • 115 economies implemented start-up reforms • 154 of 181 economies reformed in at least one of 10 areas covered in Doing Business • Over 175 reforms in 69 economies informed by Doing Business

  4. Subnational Doing Business Project Expands the DB indicators beyond the most populous city Captures local differences in regulations or enforcement Includes rules and regulations at all levels of government Gives specific locations an opportunity to tell their story Provides a tool for locations to compete globally Provides information on good practices within the same country that can be easily replicated Combines media appeal of DB with active participation of subnational governments in the reform process

  5. Subnational Doing Business has projects all around the globe Countries: 36 Cities: 266 2005 2006 2007 2008 2009

  6. Subnational Doing Business in India 2009 • 7 topics measured in India: • Starting a business • Dealing with construction permits • Registering property • Enforcing contracts • Trading across borders • Paying taxes • Closing a business Data were collected with the help of 280 private sector contributors and 230 public sector officials

  7. Doing Business in India covers 17 locations Patna Ludhiana Gurgaon New Delhi Noida Guwahati Jaipur Ahmedabad Gujarat Kolkata Indore Ranchi Mumbai Bhubaneshwar Bengaluru Hyderabad Kerala Kochi Chennai

  8. Doing business in India: Where is it easiest?

  9. Starting a business: Time and cost to start a business in India and selected economies

  10. Starting a business in Noida – fastest in India together with Mumbai

  11. Dealing with construction permits: Some cities have a more efficient approval process

  12. Registering property:Time and cost vary significantly across states

  13. Paying taxes: Indian businesses make numerous tax payments

  14. Trading across borders: Exporters spend most time on paperwork

  15. Enforcing contracts:Lengthy delays during judgment/trial

  16. Closing a business: average time, cost and recovery rate as compared to world regions

  17. Indian cities are reforming… * Locations measured by Doing Business in South Asia 2007 17

  18. … thanks to reforms, registering property in Jaipur is fastest in India

  19. “Indiana” would rank 67th globally if regional best practices were adopted in other cities

  20. Business regulation reform matters Evidence from business start-up reform in Mexico • Evaluation of impact on formal firm creation of a municipal reform which decreased the time to obtain an operation license from average 30 to 2 days in 93 municipalities. • Increase in new start-ups by about 4% (Kaplan, 2006) • Increase in employment in eligible industries by 2.8% (Bruhn, 2008) Indicative of how policy reform can lead to substantial real impact

  21. Doing Business in India 2009 http://www.doingbusiness.org/India THANK YOU http://subnational.doingbusiness.org

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