India is taking significant steps towards modernization, globalization, and statistically, it is a constantly improving economy, especially after the drastic economical changes made in the taxation system upon implementation of GST. This has resulted into boosting India’s ease-of-doing business rankings, attracting many more foreign investors to start business in India.
The initial days after implementation of GST in India was a little stuttering, but soon the one tax blanket system paced up and eventually, it is turning out to be beneficial for people wanting to start new business. This is because, the older taxing system followed different taxes for different states, making inter-state business tougher and complex, but GST follows “One Nation, One Tax” system that many developed countries have adopted. The implementation of GST has also attracted foreign investors for the easier business opportunities, bringing up India’s ease-of-doing business rankings.
Hence, India paced up from its 142nd position among 190 countries in ease of doing business ranking, and made an impeccable jump to 77th rank in ease of doing business rankings across the world. This improvement is getting India recognized by international bodies like the IMF, World Economic Forum and UNCTAD. Other than GST, various initiatives like Digital India and income tax reformation have also contributed in the improvement of Indian economy.
Earlier, if an entrepreneur wanted to start a business and wanted the electricity connection, the procedure to get a new electricity connection involved 7 official procedures, which took 3 months for completion. However, currently, the very same procedure is completed by half of the time and also the cost has been reduced by 30%. Visioning for future, PM Modi expressed how India plans to break into top 50 nations in World Bank’s ease of doing business ranking in coming days. “All these institutions are confident and hopeful of our future due to the pace of our reforms. Amid the persistent efforts in the country, now our effort is to take India to the 5 trillion dollar club as soon as possible. To achieve this goal we will have to improve every sector of the economy”.