Why is it in the news?

India ranks 63rd among 190 countries improving by 14 ranks from its rank of 77 in 2019 in World Bank’s Ease of Doing Business ranking 2020.

Ease of Doing Business(EDB)

  • The project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level.
  • For India: The report assesses improvement in ease of doing business environment in Delhi and Mumbai.

What is measured in Doing Business?


 Inadequacy in EDB index

  1. Doing Business measures more at the micro-level and not at the macro level.
  2. Security, the level of education of workers in a given country, infrastructure that can impact the business environment of a country that is not covered by Doing Business.
  3. Focus on the largest business cities.
  4. The World Bank just takes governments words for it instead of looking at whether reforms were actually implemented.
  5. It assumes that all business is subject to similar tax treatment. That is demonstrably false, especially in larger economies like India.

What’s good for India ?

  1. Resolving Insolvency
  2. Dealing With Construction Permits
  3. Trading Across Borders

Where does India need improvement ?

  1. Starting A Business
  2. Enforcing contracts (163rd rank)
  3. Registering property (154th rank).
  4. Protection Of Minority Investors