Ease Of Doing Business 2019: India Registers Highest Jump In Granting Construction Permits In 4 Years

At a time when the Prime Minister Narendra Modi–led Central government was facing severe opprobrium over the weak state of economy, India has managed to register a 23-spot jump in the World Bank’s ease of doing business index. India is now placed at the 77th spot at the 190-country index that is topped by New Zealand. Last year, India was placed at the 100th position, a jump of 30 spots from its 130 ranking in 2016.

In its annual Doing Business 2019 report, the World Bank said India improved its rank on six out of the 10 parameters. These parameters include ease of starting a business, construction permits, getting electricity, getting credit, paying taxes, trade across borders, enforcing contracts and resolving insolvency. Especially remarkable improvement is seen in India providing construction permits. From 184 in 2014, India now ranks 52 on this parameter.

In Delhi, it takes 91 days and 16 procedural steps to get a construction permit. In Mumbai, it now takes only 99 days and 20 procedures to get a construction permit.

While lauding the upgrade, developers’ body Credai said the government should expedite implementation of the single-window clearances mechanism to sustain the momentum.

"We acknowledge the ongoing efforts of the government to tackle the pressing administrative roadblocks in the Indian real estate sector, as reflected in the improvement in ranking. We, however, believe that there is still a long way to go in order to sustain this momentum; and the government should expedite implementation of the single-window clearances to accelerate the revival of Indian real estate," said, Credai National President Jaxay Shah told media.Parameters on which India’s ranking has declined include protecting minority rights (7) , paying taxes (121) , registering property (166) and resolving insolvency (108) .

The sharpest decline in performance was registered on the “Registering Property” parameter. The country is now ranked 166 of this parameter from its ranking of 121 in 2014. Last year, the country was ranked 154.

In Delhi, it takes 55 days and nine procedures to register a property, according to the report. In Mumbai, on the other hand, it takes 85 days and nine procedures to do the same.

Also read: The Growing Unease Of Registering Property In India