India ranked 77th World Bank’s Ease of Doing Business Index
India ranked 77th among 190 countries by leapfrogging 23 ranks in World Bank’s Ease of Doing Business (EODB) 2018 rankings. In the 2017 rankings, India ranked 100th and had jumped 30 places. In 2016, 2015 and 2014, India had not improved much and was placed at 130, 131 and 134, respectively, in ranking.EODB 2018 was topped by New Zealand (consecutive for the third time), followed by Singapore, Denmark, and Hong Kong. The US was placed at eighth and China was ranked 46th while Pakistan is placed at 136th.
India moved from rank 184 in 2014 to 52 in 2018 in the construction permits category, 137 to 24 in getting electricity, 126 to 80 in trading across borders, 156 to 121 in paying taxes, 137 to 108 in resolving Insolvency, 186 to 163 in enforcing contracts, 158 to 137 in starting a business, and 36 to 22 in getting credit.
About Ease of Doing Business Index
- The index ranks 190 countries based on 10 indicators across the life-cycle of a business, from “starting a business” to “resolving insolvency.” These are: Starting business, Dealing with construction permits, Getting electricity, Registering property, Getting credit, Protecting minority investors, Paying taxes, Trading across borders, Enforcing contracts and Resolving insolvency.
- Each one of these indicators carries equal weightage. In the case of India, Delhi and Mumbai are only two cities surveyed by the World Bank for this ranking.
India’s performance in EODB 2018
- Its jump in ranking in EODB 2019 was aided largely by the improvement in areas such as “trading across borders”, “dealing with construction permits”, “getting electricity”, “getting credit” and “starting a business”
- It has improved in rank in six out of ten indicators. It has moved closer to international best practice. India’s score also improved to 67.23, a gain of 6.63 from last year.
- The most dramatic improvements by India was registered in indicators related to ‘construction permits’ (improved to 52 from 181) and ‘trading across borders’ (rose to 80 from 146).
- Last year, India saw its ranking dip on various other parameters, such as “registering property”, “protecting minority investors”, paying taxes” and “resolving insolvency”.
- It is among the top ten economies improving most across three or more areas alongside countries such as Afghanistan, Djibouti, China, Azerbaijan, Togo, Kenya, Côte d’Ivoire, Turkey, and Rwanda.
- It made starting business easier by integrating multiple application forms into general incorporation form. India also replaced value-added tax (VAT) with GST for which registration process is faster