Ease of doing business Current Affairs - 2019
Category Wise PDF Compilations available at This Link
Andhra Pradesh and Telangana have jointly topped the Ease of Doing Business Reforms Ranking 2015-16.
The ranking of the states was conducted by the Department of Industrial Policy and Promotion (DIPP) and the World Bank.
How states were ranked?
- States were ranked on their implementation of DIPP-proposed 340-point Business Reform Action Plan in period between July 2015 and June 2016.
- They were rated based on their score in the per cent scale i.e. implementation rate regarding the 340 reform measures.
- These 340 reform areas are broadly under six key categories: tax reforms, single-window systems, environment and labour reforms, construction permits, inspection reforms and commercial disputes and paper-less courts.
- 32 States and UTs had submitted evidence of implementation of 7,124 reforms. These submissions were reviewed by the World Bank team and validated by the DIPP.
Key Highlights of the 2016 rankings
- Top 10 states: Andhra Pradesh (Score 98.78%), Telangana (98.78%), Gujarat (98.21%), Chhattisgarh (97.32%), Madhya Pradesh (97.01%), Haryana (96.95%), Jharkhand (96.57%), Rajasthan (96.43%), Uttarakhand (96.13%) and Maharashtra (92.86).
- The national implementation average of reforms stands at 48.93%, significantly higher than 2015 national average of 32. This demonstrates the great progress made by States in 2016.
- Low-income States: Four of seven States with lowest income levels in India had found a place in top 10. All seven such lowest income levels states had an implementation rate of over 75%.
- These low-income States included Chhattisgarh (97.32%, 4th rank), Madhya Pradesh (97.01%, 5th rank), Jharkhand (96.57%, 7th), Rajasthan (96.43% and 8th), Odisha (92.73%, 11th), Uttar Pradesh (84.52%, 14th), and Bihar (75.82%, 16th rank).
- 12 states were ranked as leaders with 90-100% implementation record. 17 states and UTs, including Kerala, Goa and most north-eastern states, were ranked as laggards with 0-40% implementation record.
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.