According to the global ease of doing business report, India jumped up 30 notches into the ‘ease of doing business’ index. India now ranks 100 globally as compared to previous year’s 130.
Not only opening a new business is easier than ever, government has also reduced from 30% to 25% the corporate tax for the businesses with less than Rs 250 crore turnover. This will reduce the burden of taxes on smaller businesses.
Improved business rankings also boosed foreign investments in the country. Commerce ministry is taking a number of measures to fasten the single window clearance and licencing processes.
The biggest reform in the country so far, GST has also favourably impacted the business environment in India. GST registration can now be done online within three days. The process of filing return and claiming refunds has also been made easier. After these measures 40 lakh new traders have joined the GST system.
In order to prevent tax evasion, the implementation of E-way Bill has also come as a major step forward for making things easier for traders and businesses. The commerce ministry is working on a new industrial policy. This will aim at modernisation of industries, setting up new ones and promoting start ups.
Tax reforms have played a key role in improving the business environment in India. Digitization of processes and better online services have made things easier for all the stakeholders.
Given the ongoing pace of reforms and measures to boost economy, the day is not far when India will achieve 50th ranking in the ease of doing business.