Former Finance Minister P Chidambaram Thursday downplayed World Bank's 'Ease of Doing Business' report in which India gained 23 slots and improved its position to 77, as a "limited study of private companies in two cities." In its annual 'Doing Business' 2019 report, World Bank has said India improved its rank on six out of the 10 parameters relating to starting and doing business in a country. These parameters include ease of starting a business, construction permits, getting electricity, getting credit, paying taxes, trade across borders, enforcing contracts and resolving insolvency.
Though Chidambaram expressed happiness over India improving its position but said don't "generalize" the report as it is for only two cities of Delhi and Mumbai.
"I am happy that things have improved in few parameters but please understand that this is a limited study of private limited companies in two cities and let us take it with that caveat," he said.
Chidambaram said he has not read the report completely, which is patterned on the report of last year.
"It is based on ten parameters, studied in only two cities Mumbai and Delhi, but that can only lead to a 'Ease of Doing Business' in Mumbai and 'Ease of Doing Business' in Delhi,. You cannot generalize for Gorakhpur and Karaikudi and Vishakhapatnam," he said.
The senior Congress leader said the study is about private limited companies alone as only they have been surveyed and there is no attempt to survey proprietorship, partnerships, association of persons.
He said most business in India is not carried out by private limited companies.
"Be that as it may, we take the study for its limited utility and given its limited utility I am happy that things have improved in a few parameters. Why should I be unhappy," he added.
India was ranked at the 142nd position among 190 nations when the Modi government came to power in 2014. It rose to the 100th spot in the last ranking from 131st rank in the previous year.
New Zealand tops the list of 190 countries in ease of doing business, followed by Singapore, Denmark, and Hong Kong.
The United States is placed eight and China has been ranked 46th. Neighbouring Pakistan is placed at 136.
The World Bank put India among the top 10 economies to make the most improvements.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)