Doing Business in Mumbai
The Ease of Doing Business (EoDB) index is a ranking system established by the World Bank to compare Business Regulations in 190 economies. The key objective of this exercise is to scrutinize the relevance and requirement of all Acts, Rules and Regulations/compliances. Efforts are being made to simplify, rationalize and digitize Government to Business (G2B) and Government to Citizen (G2C) interfaces, in order to decrease time and cost burden and improve Ease of Doing Business for industrialists/investors.
Each year, World Bank publishes Doing Business Report after conducting a thorough assessment of the business reforms of the selected economies. In 2014, Government of India launched the ambitious program of streamlining regulatory reforms aimed at making it easier to do business in India. Since then, India has made a substantial leap upward and has emerged as one of the most attractive destinations not only for investments but also for doing business. The ranking involved assessment of two Indian cities for Country level ranking, namely Mumbai and Delhi.
In the exercise, the city of Mumbai has constantly contributed towards improved ranking of India. From Doing Business rank of 133 to 130 during the years 2009 to 2016, India has progressed to a rank of 63 in the year 2019 that is evidenced by the World Bank published Doing Business Report 2020. India is ranked 27th in ‘Dealing with Construction Permits’ and 22nd in ‘Getting Electricity’.
World Bank assesses countries on 10 indicators to identify the extent of convenience an investor experiences while setting up and operationalization of business. The assessment is carried out by way of presentations and questionnaires that are filled by the investors and department personnel. Based on user feedback analysis, World Bank ranks countries and the result is published as part of ‘Doing Business Report’.
The period of assessment for Doing Business activity is from May to April of the assessment year. The indicators applicable to Mumbai are as follows:
- Starting a Business: MCGM (Shops), GST (primarily Ministry of Corporate Affairs, Govt. of India)
- Dealing with Construction Permits: MCGM, Govt. of Maharashtra
- Getting Electricity: Energy, Govt. of Maharashtra
- Registering Property: Revenue, Govt. of Maharashtra
- Paying Taxes: MLWB (primarily Department of Revenue, Ministry of Finance, Govt. of India)
- Enforcing Contracts: Law & Judiciary, Govt. of Maharashtra
India’s Journey in Doing Business:
|
DB Evaluation Year |
Rank |
Change |
|---|---|---|
|
2013 |
132 |
— |
|
2014 |
134 |
-2 |
|
2015 |
142 |
-8 |
|
2016 |
130 |
+12 |
|
2017 |
130 |
— |
|
2018 |
100 |
+30 |
|
2019 |
77 |
+23 |
|
2020 |
63 |
+14 |
Indicator-wise Comparative for two successive years:
|
Indicator |
DB 2019 Rank |
DB 2020 Rank |
Change |
|---|---|---|---|
|
Starting a Business |
137 |
136 |
+1 |
|
Dealing with Construction Permits |
52 |
27 |
+25 |
|
Getting Electricity |
24 |
22 |
+2 |
|
Registering Property |
166 |
154 |
+12 |
|
Paying Taxes |
121 |
115 |
+6 |
|
Enforcing Contracts |
163 |
163 |
— |
|
India |
77 |
63 |
+14 |
Key Achievements:
- India jumped from a rank of 77 in 2018 to 63 in 2019
- Indicator-based Outcomes:
-
Starting a Business: GST Registration and Profession Tax Registration are
integrated with MCA’s SPiCE+ Form - Getting Electricity: Only 3 procedures are required to get electricity connection
- Construction Permits: MCGM’s Online Building Plan System has all available NOC’s under the same system
- Registering Property: Property Register Cards are integrated and available in MCGM’s OBPS, thus eliminating the requirement for an applicant to physically procure PRC
- Paying Taxes: MLWB has implemented an online portal for collecting contributions made under Labour Welfare Fund
-
Starting a Business: GST Registration and Profession Tax Registration are