[pib] India at 77 Rank in World Bank’s Doing Business Report, 2018

Note4Students

Mains Paper 3: Indian Economy | Issues relating growth and development.

The following things are important from UPSC perspective:

Prelims: Ease of Doing Business Report 2018

Mains level: Factors leading India to improve its ranking on Ease of Doing Business index and the problems that needs to be solved to further improve its performance.


News

Context

  • The World Bank released its latest Doing Business Report (DBR, 2019) in New Delhi.

India’s Performance

  1. India has recorded a jump of 23 positions against its rank of 100 in 2017.
  2. It is placed now at 77thrank among 190 countries with a leap of 23 ranks.
  3. The DBR ranks countries on the basis of Distance to Frontier (DTF), a score that shows the gap of an economy to the global best practice.
  4. This year, India’s DTF score improved to 67.23 from 60.76 in the previous year.
  5. As a result of continued efforts by the Government, India has improved its rank by 53 positions in last two years and 65positions in last four years.

Doing Business Assessment of India

  1. The Doing Business assessment provides objective measures of business regulations and their enforcement across 190 economies on ten parameters affecting a business through its life cycle.
  2. India has improved its rank in 6 out of 10 indicators and has moved closer to international best practices (Distance to Frontier score) on 7 out of the 10 indicators.
  3. Indicators where India improved its rank are as follows:
S. No. Indicator 2017 2018 Change
1 Construction Permits 181 52 +129
2 Trading Across Borders 146 80 +66
3 Starting a Business 156 137 +19
4 Getting Credit 29 22 +7
5 Getting Electricity 29 24 +5
6 Enforcing Contracts 164 163 +1
Overall rank 100 77 +23

Important features of India’s performance this year are:

  1. The World Bank has recognized India as one of the top improvers for the year.
  2. This is the second consecutive year for which India has been recognized as one of the top improvers.
  3. India is the first BRICS and South Asian country to be recognized as top improvers in consecutive years.
  4. India has recorded the highest improvement in two years by any large country since 2011 in the Doing business assessment by improving its rank by 53 positions.
  5. As a result of continued performance, India is now placed at first position among South Asian countries as against 6th in 2014.
Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.
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