AND WE WAIT FOR “THE INDEX”……

The market has jumped up again today and many say the reason is the Finance Minister, Arun Jaitley saying that he respects the autonomy of RBI within the framework of the RBI Act and is an essential and accepted governance requirement.

The market going up because Patel and Jaitley will bury the hatchet and move on?  Seems unlikely that this could lead to an over 450 points jump that we see currently (2.45pm).

Actually, the real reason, as we perceive is the Ease of Doing Business Ranking. This ranking is to be announced to today and it is widely estimated that India will move up from its 100th rank of 2017 to around 80 in this 2018 edition.

This is being seen as a huge trigger and is sure to see a huge rally if India’s ranking does move up. And in all likelihood, it will. Implementation of the boldest and biggest tax reform, the GST is sure to push up India’s rankings by quite a few notches.

The introduction of the “Simplified Proforma for Incorporating Company Electronically (SPICe)”, for easing starting of new business will also get noted. The country has worked hard on streamlining trading across borders too by reducing paper work and logistical issues.

The expectation is that we will jump up 25-30 ranks this year. And yes, the market is sure to celebrate if this does come through.

But as we put all our concentration only on this one ranking, what about the other rankings where we are doing poorly? Or because they have no bearing on the stock market, we should not bother about it? It is ironical that the fastest growing economy in the world is home to the 2^nd most poor too. Nigeria just toppled India from this position a couple of months ago. But are we working furiously to change this the way we are working on the Ease of Doing Business index?

Take a look at these other rankings:

1. WHO in March released data which gave India the distinction of having the world's 10 most polluted cities in the world.

2. The CAF World Giving Index 2018 finds that when it comes to donating money, volunteering time and helping a stranger among 146 countries, India ranks at 124 in 2018 as opposed to its position of 81 in 2017. 

3. The Passport Index' Global Passport Power Rank 2017 ranks India, according to its passport's total visa-free score, below countries like Mali, Madagascar, Gabon, and Comoros, which all had a visa-free score of 52. India, according to the index, has a visa-free score of 51.

4. India is among the bottom five countries on the Environmental Performance Index 2018, plummeting 36 points from 141 in 2016, according to a biennial report by Yale and Columbia Universities along with the World Economic Forum. Its overall ranking is pathetic at 177 among 180.

5. India has been ranked at 78th, lower than its emerging market peers like Brazil and China, among 114 countries on the World Economic Forum’s (WEF) energy transition index that was topped by Sweden.

6. World Press Freedom Index Report 2018 by Reporters Without Borders, placed India on 138th position out of 180, down from 136 in 2017.

7. India ranks 130 out of 189 countries in the latest human development rankings released by the United Nations Development Programme (UNDP). 

8. UK-based charity Oxfam International’s ‘Commitment to Reducing Inequality (CRI) Index’ ranks India 147th among 157 countries analysed, describing the country’s commitment to reducing inequality as a “a very worrying situation” given that it is home to 1.3 billion people, many of whom live in extreme poverty.

9. India slipped 21 places on the World Economic Forum’s (WEF) Global Gender Gap index to 108, behind neighbours China and Bangladesh, primarily due to less participation of women in the economy and low wages.

10. The World Happiness Index 2018, which measures 156 countries in terms of happiness, has placed India in the 133rd position, a drop of 11 places from last year's 122nd rank. 

11. India has been ranked at the 103rd position among 119 countries on the Global Hunger Index, stating India is among the 45 countries that have "serious levels of hunger.”

12. India ranked 57 out of 126 in Global Innovation Index as per a report published by Cornell University, the Paris-based business school INSEAD and the World Intellectual Property Organisation (WIPO) in Geneva.

13. India holds 2nd position for having the world’s highest number of people living in extreme poverty, which is defined as living on less than $1.90 a day. The threshold captures those who struggle to obtain even basic necessities such as food, shelter and clothing, and takes into account differences in purchasing power between countries.

14. India ranked 81 out of 180 countries in Global Corruption Perception Index.

And yes, we now also hold the record of having the tallest statue in the world!