India skids on ranking to shield minority shareholders

Economic Survey: India skids on ranking for protecting minority shareholders

The economic survey also patted the back of the government, stating that implementation of Goods and Services Tax (GST) has helped India in improving the ease of doing business.

India has skidded in the ranking to protect the interest of the minority shareholders for the second consecutive year in a row, reveals the economic survey.

in 2019, India lost six places to move to the 13th slot, when it comes to preventing the interest of the minority shareholders. In 2018, it had skidded three places to move to seventh place from fourth.

This revelation comes when Cyrus Mistry has alleged that one of the largest corporate houses Tata Sons, led by its patriarch, have muzzled the voices of the minority shareholders. 

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The economic survey also patted the back of the government, stating that implementation of Goods and Services Tax (GST) has helped India in improving the ease of doing business.

"It has progressed on seven out of the 10 parameters.The Goods and Service Tax (GST) and the Insolvency and Bankruptcy Code (IBC) top the list of reforms that have propelled India’s rise in rankings," the economic survey. 

India has made substantial gains in the World Bank’s Doing Business rankings from 142 in 2014 to 63 in 2019. 

However, India continues to trail in parameters such as Ease of Starting Business (rank 136), Registering Property (rank 154), Paying Taxes (rank 115), and Enforcing Contracts (rank 163). "It takes roughly 58 days and costs on an average 7.8% of a property’s value to register it, and 1,445 days for a company to resolve a commercial dispute through a local first-instance court," the survey noted.