India ranks 142nd in the Doing Business 2015 Report
India was ranked 142nd among 189 nations in the World Bank’s Ease of Doing Business Report. ‘Doing Business 2015: Going Beyond Efficiency’ is a World Bank Group flagship publication. The 2015 version is the 12th such annual report. The report seeks to measure the regulations that enhance business activity and those that restrict it. The report quantifies indicators on business regulations and the protection of property rights and then compares it across 189 economies and over different time periods.
The WB develops the rankings based on consultations with ‘legal and accounting professionals, government officials and business practitioners, among others, across countries.’
In 2014, for the first time, the WB collected data for two cities in large economies with population of more than 100 million. In India, the two countries taken into account were Mumbai and Delhi.
India’s 2015 ranking was two notches below its 2014 ranking, even though the Report itself credits India for carrying out reforms. Also, the Report only takes into account measures carried out till the 31st of May so, most of the reforms carried out by the new Central Government hasn’t been included whilst finalizing the ranking.
In ease of starting business, India dropped two steps to 158 and one step in dealing with construction permits to 184.
India’s points score improved in six out of 10 criteria, remained unchanged on three criteria, and fell in the ease of paying taxes criteria. The country’s overall score increased from 53.97 to 52.78, even as the ranking fell.
As far as global ranking in concerned, India improved its performance only in the newly introduced category of protecting minority investors. Its ranking dropped in all other categories except for enforcing contracts where the ranking remains unchanged.
Having undertaken 20 reformative measures, India topped the list of reformers in South Asia, which saw the lowest number of reforms. However, despite that, India is ranked below Sri Lanka (99), Nepal (108), Maldives (116), Bhutan (125), and Pakistan (128).
Countries performing well
Singapore topped the list of business-friendly economies globally for the ninth consecutive year. The top 10 economies are Singapore, New Zealand, Hong Kong, China, Denmark, South Korea, Norway, USA, Britain, Finland and Australia.
A lot of sub-Saharan African countries have registered the most improvement. Progress in the Middle East and North Africa, however, was uneven. 80% of the countries showed an improvement in business regulations, but, only around a third of the countries registered improved rankings.
Categories: India Current Affairs 2017