Want to do Business in India – Go to Ludhiana or Hyderabad
A World Bank Study, Doing Business in India 2009 compared business regulations across 17 Indian cities. The report focuses on local regulations that affect 7 stages in the life of a small or mid-sized domestic enterprise:
starting a business,
dealing with construction permits,
registering property ,
paying taxes,
trading across borders ,
enforcing contracts, and
closing a business .
The report shows that differences in city- and state-level regulations and practices in the implementation of national-level regulations can enhance or constrain local business activity. The report suggests that cities in India can learn from each other and adopt good practices that are already working within the country.
++ Doing business is easier in Ludhiana, Hyderabad, and Bhubaneshwar. It is more difficult to start and operate a business in Kochi and Kolkata.
++ The number of procedures to open a business ranges from 11 to 13, 8 of which are set nationally. Starting a business is fastest in Mumbai and Noida with 30 days and slowest in Kochi with 41 days. Business start up is least expensive in Patna at 38% of income per capita, while in Mumbai, the cost is almost twice as much.
++ The process to obtain construction-related permits and clearances is easiest in Bengaluru, Chennai and Hyderabad, where 15 procedures are required, but more cumbersome in Kolkata and Mumbai, where more than 30 procedures are needed. Cutting the time to the level of Hyderabad - 80 days - would put India ahead of Germany.
++ Cities in India do well on the number of procedures required to register property - on average, only 5 procedures are needed. This performance ranks the average Indian city at 47th out of 181 economies.
++ When compared internationally, Indian cities lag behind in the ease of enforcing contracts, closing a business and paying taxes.
++ There are a lot of good local practices and cities can learn from each other. If a city in India were to adopt all best practices that already exist in the seven areas covered by the report, it would rank 67th out of 181 economies, improving India's global ranking by 55 positions.