Getting loan easier, starting biz tougher in India

India has become a better place for entrepreneurs to get a loan, but at the same time the overall process to start a business here has become tougher in last one year, a World Bank study has found.

According to the 'Doing Business 2008' report published by the World Bank and its private sector lending arm IFC, India has moved up 12 positions in terms of ease of business, but is still ranked in the bottom half at 120th position among 178 economies across the world.

The overall ranking is based on ten different indicators of business regulation that track the time and cost to meet government requirements for business start-up, operation, trade, taxation and closure.

India has improved significantly when it comes to getting credit, trading across the world, but its position has deteriorated in areas like starting a business, employing workers, registering property, paying taxes and closing taxes.

The country has been ranked 111th for starting business, down from 93rd a year ago. For dealing with licences, it has dropped one rank to 134th, while for employing workers it has been placed two ranks down at 85th position.

However, for getting credit, it has climbed 26 positions to 36th as compared to 62nd last year.

On the indicator of paying taxes, the country has lost seven positions to 165th, up from 158th during last year. For registering a property, India has dropped four positions standing at 112nd against 108 last year. For closing a business, it is down two places at 137th rank.

In starting a business, the entrepreneurs have to follow 13 official procedures in a span of 33 days and in dealing with the licences it requires six procedures and 62 days.