Acknowledging the steps being taken by India for sustainable and inclusive growth as well as support to global economy, the G-20 has praised the initiatives in the country for promoting ease of doing business, start-up funding and labour reforms.
In its Hamburg Action Plan, adopted at the G-20 Summit, the group noted that India is facilitating external commercial borrowings (ECBs) by startups to encourage innovation and promote ease of doing business.
On steps being taken by G-20 countries for promoting inclusive growth this year, the Action Plan said India is introducing labour market reforms to provide security to workers, increase female participation in the work force and make doing business easier in the country.
The group also noted that in the financial sector, India is popularising a number of derivative instruments in exchanges or electronic trading platforms as part of the measures to enhance resilience of its economy.
What these acknowledgement from G-20 Summit mean to India?
India is trying hard to improve its global ranking for ease of doing business. These acknowledgements have come as a latest boost to hopes for better ranking for India in terms of ease of doing business.
Last year, the World Bank ranked India at 130th position which was in contrast to India’s plan to get ranked in the top-50 nations in terms of ease of doing business. However, these acknowledgements might improve India’s ranking which is expected to come later this year.
As per the World Bank ranking, the areas where India ranks poorly include starting a business, dealing with construction permits, registering property, paying taxes, trading across borders, enforcing contracts and resolving insolvency.
However, in the recent months, the country has implemented a spate of reforms in some of these areas like insolvency, taxation and starting a business.
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The Group of Twenty (G-20) is an international forum that brings together the world’s leading industrialised and emerging economies. The group accounts for 85% of world GDP and 2/3rd of its population.
It was founded in 1999 with the aim of studying, reviewing, and promoting high-level discussion of policy issues pertaining to the promotion of international financial stability.
The G-20 operates without a permanent secretariat or staff. The incumbent chair establishes a temporary secretariat for the duration of its term. The group’s chair rotates annually among the members and is selected from a different regional grouping of countries.
It is not governed by any written rules or laws.
All the decisions are collectively taken, there is no voting process and no decision is made at the discretion of a single party.
The member of G-20 are: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, U.K., U.S., and European Union.