• India jumped 23 positions in the World Bank’s Ease of Doing Business Index and is now ranked 77 out of 190 countries in 2018, a development that could help the country attract more foreign investments.
• It was ranked 100 in 2017, making a leap of 30 places.
• The World Bank released its latest Doing Business Report (DBR, 2019) today in New Delhi.
• The ranking comes as a shot in the arm for the Narendra Modi government which faces strong dissenting voices from opposition parties ahead of the general elections next year.
• India has improved its rank by 53 positions in the last two years and 65 positions in the last four years.
• The Doing Business assessment provides objective measures of business regulations and their enforcement across 190 economies on ten parameters affecting a business through its life cycle.
• India has improved its rank in 6 out of 10 indicators.
• These parameters include ease of starting a business, construction permits, getting electricity, getting credit, paying taxes, trade across borders, enforcing contracts and resolving insolvency.
• The most dramatic improvements were registered in the indicators related to ‘Construction Permits’ and ‘Trading across Borders’.
• In grant of construction permits, India’s rank improved from 181 in 2017 to 52 in 2018, an improvement of 129 ranks in a single year.
• In ‘Trading across Borders’, India’s rank improved by 66 positions moving from 146 in 2017 to 80 in 2018.
• New Zealand topped the list of 190 countries in ease of doing business, followed by Singapore, Denmark, and Hong Kong.
• The United States is placed eight and China has been ranked 46th. Neighbouring Pakistan is placed at 136.
• World Bank put India among the top 10 economies to make the most improvements.
Mains Paper 3: Indian Economy | Issues relating growth and development.
Prelims: Ease of Doing Business Report 2018
Mains level: Factors leading India to improve its ranking on Ease of Doing Business index and the problems that needs to be solved to further improve its performance.