The implementation of Goods and Services Tax (GST) and the new Insolvency and Bankruptcy Code will in a major way boost India’s ranking by the World Bank and international rating agencies that will help in attracting huge foreign investment, officials said on Thursday.
They also feel that the rating agencies are biased when it comes to rating developing countries like India vis-a-vis developed countries when it comes to several aspects like ease of doing business and other issues.
Giving a presentation on various aspects of economy and the reforms undertaken by the government in the last three years at a meeting, the officials said that the government has undertaken 183 reforms in all. But the World Bank has taken note of only 133 fully or partially implemented measures.
The officials said as many as 122 reforms have been implemented and still 88 were under implementation. Once these reforms along with structural reforms like the GST and the IBC are taken into account they will give us a major boost in rating, they said.
They said the Moody’s has favourably commented on demonetisation and other institutional changes. Inflation handling has been acknowledged while Aadhaar has ensured institutional transparency. The banking sector intervention has also been favourably taken note of. In September, this banking aspect was considered as a great risk.