PM inaugurates three infrastructure projects in Kochin
Context:
Three infrastructure projects in Kochi, totaling ₹4,000 crore, were inaugurated by Prime Minister Narendra Modi.
Relevance:
GS-03 (Economy)
Main Highlights:
- Projects include a new dry dock, an international ship repair facility (ISRF) by Cochin Shipyard Ltd (CSL), and an LPG import terminal by Indian Oil Corporation Limited at Puthuvypeen.
- Aligned with the vision to transform India’s ports, shipping, and inland waterways, enhancing capacity and self-sufficiency.
- Reforms for ease of business in these areas and Sagarmala project to improve port connectivity were emphasized.
- The new dry dock aims to reduce dependence on foreign countries for vessel repairs, promoting self-reliance and saving foreign exchange.
- ISRF envisions transforming Kochi into South Asia’s largest ship-repair center, fostering a new ecosystem of MSMEs.
- The LPG import terminal will cater to the LPG needs of several cities, contributing to regional development.
- Prime Minister Modi highlighted improved port turnaround times, surpassing many developed nations.
Ease of doing business:
- The ease of doing business index, established by economists Simeon Djankov, Michael Klein, and Caralee McLiesh at the World Bank Group, aimed to evaluate regulations impacting businesses and property rights.
- The index, originating from the World Development Report 2002, was influenced by research guided by Joseph Stiglitz and Roumeen Islam. Despite its initial success, the World Bank discontinued the report in 2021 due to documented pressure to manipulate results.
- Various organizations proposed replacements, with the Templeton Foundation granting Professor Robert Lawson the task of proposing a methodology for an academic restart in 2023.
- The World Bank released the replacement index’s methodology in May 2023, detailing topic areas, indicators, questionnaires, benchmarking parameters, scoring rules, and data sources.
- The new index assessed nations based on 10 subindices, covering aspects such as starting a business, construction permits, electricity access, property registration, credit access, investor protection, tax procedures, international trade, contract enforcement, and insolvency resolution.
India and Ease of Doing Business:
- In the Ease of Doing Business 2020 report by the World Bank, India secured the 63rd position among 190 nations.
- The Indian government initiated a comprehensive regulatory reform program in 2014, aiming to streamline business operations and enhance the overall business climate. This endeavor has significantly contributed to positioning India as one of the most attractive destinations for investments and business activities.
- India made a remarkable leap in the World Bank’s Ease of Doing Business Ranking, advancing from 142nd in 2014 to 63rd in 2019.
- The substantial improvement in India’s EoDB index is the result of positive developments, with key achievements in areas that includes betterment in the issuance of construction permits and India’s score in getting electricity which increased from 137 in 2014 to 22 in 2019.
- Furthermore, India holds the 25th position globally in terms of obtaining credit and the 13th position in protecting minority investors among the 190 economies assessed by the World Bank.
