News >> India to move up World Bank’s ease of doing biz index

India to move up World Bank’s ease of doing biz index

 ‘Performance will be as encouraging as last year’s’

India is expected to show a “big improvement’’ in its ranking in the World Bank’s Ease of Doing Business global index to be announced on Wednesday with improved performance in most of the 10 indicators of doing business, a government official has said. “The top three areas of improvement this year are likely to be starting a business, trading across borders and dealing with construction permits. The overall performance this year will be as encouraging as last year,” the official told Business Line.

India jumped 30 notches last year to rank in the top 100 countries in the World Bank’s Ease of Doing Business global rankings for the first time. The World Bank ranks a total of 190 countries.

Commerce Minister Suresh Prabhu also indicated that India’s performance would improve in the World Bank’s ease of doing business report 2019 to be released on Wednesday.

“Tomorrow, you will be hearing a better news about India improving parameters on ease of doing business. We already have improved substantially. We will make the formal announcement tomorrow with the World Bank (releasing its report),” Prabhu said on Tuesday.

The World Bank had noted in its last report that India lagged in areas such as starting a business, enforcing contracts, and dealing with construction permits. “These are the areas where India gave specific focus and, therefore, hopes to reap maximum gains,” the official said.

While the World Bank’s index is designed to give an idea to foreign investors about the investment regimes in different countries, it is yet to be ascertained whether improvement in India’s ranking has actually resulted in higher foreign investment flows.

The World Bank ranks countries based on parameters such as starting a business, construction permits, getting electricity, getting credit, paying taxes, trade across borders, enforcing contracts and resolving insolvency.

(Source: Amiti Sen, The Hindu BusinessLine, October 31, 2018)