The Economic Times of India reports that in India, it takes 89 days to start a business with 11 separate procedures, 425 days to enforce contracts with 40 procedures, 67 days to register property with 6 procedures and 10 years to resolve insolvency.
Compare this with the respective figures of 41 days, 241 days, 32 days and 2,4 years for China. This calculation of course does not take into account the time required to collect information about registration procedures. The number of procedures does involve transaction cost, but ultimately, it is the time taken that matters.
If India wants to attract Foreign Direct Investment (FDI) in preference to its developing country competitors, it has yet a long way to go in improving its investment climate. This is evident from the World Banks latest “Doing Business Report”.
Among a set of 9 developing country counterparts, India pretty much figures at the bottom of the heap, as far as the various investment climate indicators considered in the report are concerned.
Pakistan is the surprise package among the developing country lot with a mere 24 days said to be required for starting a business after completing requisite formalities.
Kilde: www.worldbank.org
