India ranks 130th in 2017 Ease of Doing Business index

India has been placed at 130th position among the 190 countries in the recently released World Bank’s ease of doing business index for the year 2017.

The index was released as part of the World Bank’s annual report Doing Business 2017: Equal Opportunity for All. This report had revised India’s rank to 130 from earlier 131st for the year 2016. Thus, India has improved its place by one spot in the 2017 index and its place remained unchanged from the previous original ranking of 130 in the year 2016.

What is ease of doing business index?

  • The ease of doing business index is annually released by World Bank in its Ease of Doing Business Report. It was introduced in 2004.
  • In this index, ranking of country is based on index averages the country’s percentile rankings on 10 indicators each having equal weightage.
  • A higher ranking of country in this list means that its regulatory environment is more conducive and favourable for the starting and operation of firms.
  • 10 indicators are starting business, getting electricity, dealing with construction permits, registering property, protecting investors, getting credit, employing workers, trading across borders, paying taxes, enforcing contracts and resolving insolvency.

Key Highlights of 2017 Report

  • Top 10 Countries: New Zealand (1st), Singapore (2nd), Denmark (3rd), Hong Kong (4th), South Korea (5th), Norway (6th), UK (7th), US (8th), Sweden (9th) and Macedonia (10th).
  • BIRCS Nations: India ranks lowest in Doing Business among the BRICS nations. Russia (40), South Africa (74), China (78), Brazil (123) and India (130).
  • India’s Neighbours: Bhutan (73), China (78), Nepal (107), Sri Lanka (110), Pakistan (144) and Bangladesh (176).
  • India Related Facts: In the ranking, India has made a substantial improvement in some areas such as electricity connection. But it has sliped in other areas, including payment of taxes and enforcing contracts.
  • India has embarked on a fast-paced reform path and has acknowledged a number of substantial improvements.
  • Some the improvement mentioned are electricity connections to businesses, paying taxes, electronic system for paying employee state insurance contributions, the Companies (Amendment) Act, electronic filing of integrated customs declarations, passage of the commercial courts and the Insolvency and Bankruptcy Code.
  • Global Facts: Economies in all regions are implementing reforms easing the process of doing business.
  • However, Europe and Central Asia continues to be the region with the highest share of economies implementing at least one reform. 96% of economies in the Europe and Central region have implemented at least one business regulatory reform.
  • A record 137 economies around the world have adopted key reforms that make it easier to start and operate small and medium-sized businesses.
  • Developing countries carried out more than 75% of the 283 reforms in the past year, with Sub-Saharan Africa accounting for over one-quarter of all reforms.

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Categories: Business & Economy Current Affairs 2017

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Comments

  • raghuram
    Reply

    revised India’s rank to 131 from earlier 130th for the year 2016

    Read more at: http://currentaffairs.gktoday.in/month/current-affairs-october-2016

    there is a slight typo in above line

    • Nikhil Paigude

      Hi Ravi, there is no typo.please refer below info
      India’s rank in 2016 report was 130. However later they has revised 2016 Rank to 131st. In 2017 Report, India’s rank is 130 similar to earlier 2016 rank and not revised 2016 Rank (131). Thus India’s rank has improved by only single rank compared to revised 2016 Rank (131). Thank you

  • sumit
    Reply

    Good

  • Vijay Bhasker V.
    Reply

    – However, Europe and Central Asia continues to be the region with the highest share of economies implementing at least one reform.

    – 96% of economies in the Europe and Central region have implemented at least one business regulatory reform.

    Observation: These two can be combined as one statement as understanding will be the same. For Instance, in the first two lines it can be re-framed as

    “However, Europe and Central Asia continues to be the region with the highest share of economies (96%) having implemented at least one business regulatory reform”

  • Anand A. Khisti
    Reply

    Now with implementation of GST the rank will improve further.