Here’s why World Bank thinks India can make it in top 100 of ease of doing business index

India improved its ranking in ease of doing business index and jumped 12 ranks to 130 th spot, the World Bank said it is not impossible for the country to be in the top 100.

World Bank Chief Economist and Senior Vice President Kaushik Basu said if India continues with its economic reforms, like the Goods and Services Tax, and erases bureaucratic cost of doing business, it would not be impossible for India to rank in top 100.

"There are countries which have moved 30-40 places at one go, but usually these are small countries. For a big economy like India, it is difficult, but from what we have seen thus far, it is not impossible," Basu.

While Basu lauded the reforms in India and said India had a reasonably substantial movement in the first year itself, he felt the country has a long way to go.

"There is a lot of serious interest in India to cut down bureaucratic costs of doing business for small and medium-sized firms. It is important however to recognise that this is just a start. There is still a long way to go," he said.

So what are the areas where India needs improvement?
1. According to Basu, India needs to trim transactions costs and the bureaucratic hurdles it places on individuals and small enterprises.
2. The top economist said India required better infrastructure-roadways, railways and ports and the improvement, which has begun, should be continued.
3. Basu says India needs inclusiveness as it is a diverse society and policies should be there so that all groups feel included.
"In the World Bank's table of growth projections for major economies in the world India is topping the list for this the next year. Something similar is true of IMF projections. I do not think this has happened before. The Indian economy has some deep strengths and must continue to build on them," he said.

Basu also weighed on the importance of GST.

"If, India can move so that by next year, after the budget, you have a GST in place, which can make a very big difference. It will not be a perfect GST to start with but it should be possible to make amendments and improve it over time," he said.

(Image: Thinkstock)
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