Photographs: Kamal Kishore/Files/Reuters
This may come as a big surprise to some of you, but a World Bank study says that Patna is ahead of Mumbai when it comes to the ease of starting a business.
According to the World Bank ranking announced on Tuesday, Patna is second only to New Delhi in this regard, but way ahead of Mumbai.
Of the 17 cities that figured in the World Bank and International Finance Corporation's 'Doing Business In India 2009' report. So check out which are the other Indian cities, according to the World Bank, where it is easy to start a business...
Patna better than Mumbai to start business
Image: A school girl with her face painted in the colours of the Indian national flag holds flags during Independence Day celebrations at a school in Patna.Photographs: Krishna Murari Kishan/Reuters
Starting a business measures the necessary steps to enable a small or medium enterprise in general commercial or industrial activities to operate legally in 17 Indian cities -- including permits, inscriptions, notifications and inspections.
Patna better than Mumbai to start business
Image: An Indian villager takes part in the Kila Raipur sports festival in Ludhiana.Photographs: Stringer/Reuters
It is easier to pay taxes in Ludhiana, Jaipur and Noida, while it is difficult to do so in Chennai, Kolkata and Patna. The report ranks the cities based on seven parameters - starting a business, dealing with construction permits, registering property, paying taxes, trading across borders, enforcing contracts and closing a business.
Strangely, the World Bank rankings do not take into account the macroeconomic conditions, infrastructure, workforce skills or security.
Patna better than Mumbai to start business
Image: Labourers work on a billboard in Mumbai.Photographs: Arko Datta/Reuters
It said starting a business is the fastest in Mumbai and Noida, while in cost terms, business start-up is least expensive in Patna.
Paying taxes records all taxes and mandatory contributions that a medium-sized company must pay as well as measures the administration burden of paying taxes and contributions.
Patna better than Mumbai to start business
Image: Corporate Offices for Ernst & Young located in GurgaonPhotographs: Morphogenesis/Handout/Reuters
According to the report, that it is the easiest to export and import goods from Bhubaneswar, while it is most difficult from Gurgaon.
The report also said that compared to economies world wide, cities in India lag most in the ease of closing a business and paying taxes.
In India, where more than 90 per cent of jobs are in the informal sector, regulatory reforms can help businesses operate efficiently in the formal sector, it said.
Patna better than Mumbai to start business
Image: Pigeons fly against the backdrop of the historic Charminar monument in Hyderabad.Photographs: Krishnendu Halder/Reuters
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