Page 649 - ES 2020-21_Volume-1-2 [28-01-21]

276 Economic Survey 2020-21 Volume 2

Figure 12: YoY growth in various indicators of listed Manufacturing
Companies in the Private Corporate Sector (in per cent)
A. Sales and Expenditure B. Net Profit

25 60

15 40
5
20
-5
0
-15
-20
-25 Sales

-35 Expenditure -40
-45 -60
FY16:Q1 FY16:Q4 FY17:Q3 FY18:Q2 FY19:Q1 FY19:Q4 FY20:Q3 FY21:Q2 FY16:Q1 FY16:Q4 FY17:Q3 FY18:Q2 FY19:Q1 FY19:Q4 FY20:Q3 FY21:Q2

Source: Survey calculations based on RBI data.

Ease of Doing Business

8.20 The GoI is committed to facilitating a pro-business environment to enable the country to
become the global hub of manufacturing and economic activities. Several measures have been
taken resulting in the simplification and rationalization of many existing and age-old rules and
regulations. The introduction of information technology and single window clearance to make
governance more efficient and effective were some of the other concrete steps taken by the
Government to improve the environment of doing business. As per the Doing Business Report
(DBR), 2020, the rank of India in the Ease of Doing Business (EoDB) Index for 2019 has
moved upwards to the 63rd position amongst 190 countries from a rank of 77 in 2018. India has
improved its position in 7 out of 10 indicators, inching up to the international best practices. The
DBR, 2020 acknowledges India as one of the top 10 improvers, the third time in a row, with an
improvement of 67 ranks in three years. It is also the highest jump by any large country since
2011. India’s progress in EoDB rankings since 2009 and the comparative position of India vis-
à-vis its peer group in DBR 2020 are shown in the Figure 13(a & b) and Figure 14.

8.21 Further, the leads and laggards within the EoDB index of India is presented in Figure 15
(cross section analysis for 2019) and Figure 16 (intertemporal analysis 2015-2019). As per the
DBR 2020 report, the lead subcomponents of EoDB were ‘getting electricity’, ‘trading across
borders’ and others (Figure 15, bars shaded in green), whereas the main laggards were ‘enforcing
contracts’, ‘registering property’, ‘revoking insolvency’, and ‘pay taxes’ (Figure 15, bars shaded
in red).
8.22 Merely comparing the subcomponents of the EoDB at a point in time may not give an
appropriate picture of overall leads and laggards in the index because it doesn’t capture the
policy initiatives and reforms taken in the recent past. Therefore, it would be more concrete
to have an inter-temporal analysis of subcomponents. Figure 16A shows the trend in scores of