The good news is that things seemed to have improved in the Indian economy as India’s rankings in the Ease of Doing Business quotient has risen from 142 to 130 in 2015. This ranking was conducted by the Word Bank. Clearly the moves made by the Narendra Modi Government seem to have paid off as traditionally this has been an area for concern and a major bottle neck for foreign investment since long. Yes, there is much more that remains to be done but things are moving, one must say, in the right direction. Other positive indicators are that the Indian economy is better placed than the other emerging markets such as Brazil, Russia, South Korea etc. The positives listed in India’s case include: “Falling oil prices. Business-friendly govt. Favourable demographics. Rising middle class. Regulated capital market. Rupee performing better than most other currencies.”
However, experts agree that the rolling out of the Goods and Services Tax (GST) and other initiatives can make significant headway in improving India’s score in the Ease of Doing Business ranking. This is a challenge before the present Government considering it does not have the required numbers in the Rajya Sabha to ensure smooth passage of reform bills.
Moody’s recently raised India’s ratings for India’s banking system from “Negative” to ” stable”. As per an estimate from Moody’s, the Indian economy will grow at around 7.5 % for both 2015 and 2016.