Business

Where India gained and lost out in the Ease of Doing Business rankings

Photo for representational purpose.   | Photo Credit: V. Ganesan

India has consistently been climbing the table in the World Bank’s Ease of Doing Business (EDB) Index. In the 2020 edition of the report, of 190 economies India is among the top 10 which saw the biggest leaps from their 2019 rankings. However, among BRICS nations, India's ranking is lower than that of China and Russia.

Snakes and ladders
The chart shows India's rankings among the EDB sub-indicators in the 2015 and 2020 editions. Eight out of 10 sub-indicators showed an improvement.

image/svg+xml Construction permits Getting electricity Resolving insolvency Trading across borders Paying taxes Enforcing contracts Starting a business Getting credit Protecting minority investors Registering property 200 160 120 80 40 0 These indicators have shown the highest improvement in rankings These indicators still need improvement These two indicators have dropped in rankings Rank, 2020 index Rank Rank, 2015 index
 

Among peers
India. like China, saw massive improvement in its ranking in the last two editions of the report, but China and Russia still rank better.

image/svg+xml 0 40 80 120 160 200 2008 2012 2016 2020 China Russia India Rank
 

A different scale
However, the World Economic Forum's Global Competitiveness ranking 2019 (which has a few overlapping indicators with the EDB) found India dropping 10 spots between 2018 and 2019.

image/svg+xml 120 80 40 0 -40 Infrastructure Skills Labour market Innovation Overall Rank in 2019* Change in rank since 2018 *Out of 141 countries
 

The EDB score measures an economy’s performance with respect to a measure of regulatory best practice across 41 indicators in 10 categories.

The methodology of the EDB has often come under scrutiny, as factors like slashing corporate tax rates and quicker issuance of building permits are incentivised. The methodology has also undergone changes over the years.

The chief economist of the World Bank, Nobel prize-winning Paul Romer, resigned over his comments about the index in 2018. 

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Printable version | Feb 27, 2021 2:14:03 AM | https://www.thehindu.com/business/where-india-gained-and-lost-out-in-the-ease-of-doing-business-rankings/article29823229.ece

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