What is Ease of Doing Business?

The Ease of Doing Business has been a buzzword for a few years now. Prime Minister Narendra Modi has been emphasizing on improving India’s rankings in the Ease of doing Business index to get into top 50. So, let us understand what is the ease of doing business all about.

  • Who publishes the report?:
    • Published by the World Bank.
    • Period: Annually.
    • Number of countries: 190.
  • What are the parameters on the basis of which it ranks the countries
    • Ten parameters:
      • Starting a business.
      • Dealing with the construction permits.
      • Getting electricity.
      • Registration of property.
      • Getting credit.
      • Protecting investors.
      • Paying taxes.
      • Trading across border.
      • Enforcing contracts.
      • Resolving insolvency.



Parameters: Ease of Doing Business


  • Where does India stand?:
    • India stands at 130 out of 190 countries.



INDIA progresses in the Ease of Doing Business ranking


  • Where does it lag?:
    • Starting Business: 155
    • Paying Taxes: 172
    • Construction permits: 185.
  • Has it improved? If yes, then what factors have contributed towards this improvement?:
    • Yes, it has improved from 131 previous year to 130, an improvement of 1 rank.
    • Areas where it improved:
      • Access to electricity has increased.
      • Easier for procedures of export/import.
      • Mechanism to resolve commercial disputes.
  • It is said that India’s rank will spike next year. Why is it so?:
    • Introduction of New Bankruptcy code.
    • Upgrade Infrastructure.
    • Goods and Services Tax(GST).
    • Liberalisation by increasing the upper FDI limits .
    • Digital procedures.
  • What could India do to further improve its rank?:
    • Faster clearances (land acquisition and forest clearances).
    • Faster adoption of GST without compromising with its spirit , that is uniformity in the tax structure.
    • Easier procedures to file taxes.
    • Dealing with the construction permits through a separate code and body which works according to such a code.
    • Faster dispute resolution between state and companies.

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