India jumped into the 63rd rank in the World Bank’s latest Ease of Doing Business rankings, soaring 14 notches from last year, as the multilateral body endorsed a string of reforms—from the signature ‘Make in India’ initiative to insolvency resolutions. The country was 77th among 190 countries in the previous ranking last year, an improvement by 23 places. The report assess improvement in ease of doing business environment in Delhi and Mumbai.
“India, which has conducted a remarkable reform effort, joins the list for the third year in a row (of top 10 improvers). Given the size of India’s economy, these reform efforts are particularly commendable,” the World Bank said in its report. “Sustained business reforms over the past several years has helped India jump 14 places to move to 63rd position in this year’s global ease of Doing Business rankings. India put in place four new business reforms during the past year and earned a place in among the world’s top ten improvers for the third consecutive year,” the World Bank Group’s Doing Business 2020 study said.
Newer companies, which are set up after October 1, 2019, will be subjected to an even lower effective tax rate of 17 percent. The new rates brings India closer, in some cases lower, to the rates prevalent in many of the emerging and industrialised countries. The new corporate income tax rates in India will be lower than USA (27 percent), Japan (30.62 percent), Brazil (34 percent), Germany (30 percent) and is similar to China (25 percent) and Korea (25 percent). New companies in India with an effective tax rate of 17 percent is equivalent what corporates pay in Singapore (17 percent).