What improved India’s World Bank ranking in ease of doing business

1.     No capital requirement:  In May 2015 the government adopted amendments to the Companies Act that eliminated the minimum capital requirement.  Now Indian entrepreneurs no longer need to deposit Rs one lakh (USD 1,629 )-equivalent to 111 per cent  of income per capita—in order to start a local limited liability company. The amendments also ended the requirement to obtain a certificate to commence business operations, saving business founders an unnecessary step and five days.

2.     Removal of Inspector Raj in Delhi, Mumbai electricity connections

Another focus is to make the process for getting a new electricity connection simpler and faster. Toward that end the utility in Delhi eliminated an internal wiring inspection by the Electrical Inspectorate—and now instead of two inspections for the same purpose,there is only one. The utility also combined the external connection works and the final switching on of electricity in one procedure.

The utility in Mumbai reduced the procedures and time for connecting to electricity by improving internal work processes and coordination. It combined several steps into one procedure—the inspection and installation of the meter, the external connection works and the final connection. Now companies can get connected to the grid, and get on with their business, 14 days sooner than before. 

Pic courtesy: GOI

Cows will scare Bulls out of Dalal Street, Focus should be on Raghuram Rajan , not Adityanath

When we should be discussing Bull run on Dalal Street, the narrative is cow slaughter and beef. When we should be discussing and debating RBI Governor Raghuram Rajan’s views on the global slowdown , we are discussing and debating Yogi Adityanath and his demand for arming Hindus in Bishada village, 24 miles off Delhi in Dadri  in northern state of  Uttar Pradesh.  

By the way, Dadri has one of the well run power plants owned by the NTPC, but Dadri has come to be identified with mob killing an innocent who , they suspected ate beef. This is not the Start-Up India and Stand Up India that PM Narendra Modi tried to hard sell in Silicon Valley a few days ago.

Also, this is not the kind of India, that Finance Minister Arun Jaitley is hard selling in the World Bank-IMF annual meeting at Lima, Peru where the focus is on the problems confronting the global economy, which is expected to grow at a poor pace of 3.1 per cent this year and 3.6 per cent in 2016.

True, among the BRICS , India stands out as yet because Russia has run into both political and economic problems with the West over Ukraine and now Syria. Brazil is battling domestic unrest, slowdown and political issues while China is giving tremors to the world economy, which has become so dependent on Yuan and Xi Jinping that their woes trouble rest of us, as much as they trouble them at home.

There are a few reasons, why India looks to be in much better shape. One, India is a net importing country spending well over  USD  100-150  billion on crude oil import, depending on the prices and other precious metals. With crash like situation in the commodity prices , India’s import bill has been considerably reduced, even though exports too are on a shaky wicket. Two, with a world class central bank governor in Raghuram Rajan, the country’s current account situation looks much healthy at less than one per cent of  the GDP. Despite  pressure on   currencies of other Emerging economies,  INR has stayed steady without causing any big issue for importers, while giving some comfort zone to the exporters.

But the trouble for India lies with the domestic political scenario, that at present looks murky. It is expected to remain so, at least till Bihar elections, crucial for Prime Minister Modi, are out of the way.

The so-called fringe elements , are a no-stopper. Ironically, some of them include ministers in the Modi Council besides Sadhvi Prachi types. Unless, it is part of the overall scheme , the BJP leadership and the Prime Minister must asset their ways and stop the initiatives being wrested from Bull run to Cow  slaughter.  Or else, bears would haunt the markets while we fight over Ghulam Ali concert in Mumbai and Shiv Sainiks having their way to stall the event. 

Pics: FB pages of Rajan, Yogi

NEWS OF USE

Small borrowers for housing loan will have to shell more personal share 

Individuals opting for bank loans  up to Rs 30 lakhs , can borrow to the extent of  80 per cent of the value of the residential properties , according to new norms fixed by the Reserve Bank of India.

Earlier, those borrowing up to Rs 20 lakhs could depend on the banks right up to 90 per cent of the value of the properties.

The RBI has notified the new Loan to Value (LTV) norms along with fixing new  risks weight.  


Pic: courtesy-National Housing Bank