Digging Deeper – India climbs up on the World Bank's ‘Doing Business Index’

An overview of India's improved ranking in the World Bank’s Ease of Doing Business 2018

India has jumped 30 positions on the World Bank’s Ease of Doing Business 2018 ranking to move into the top 100 riding on the crest of sustained reforms.  

Reports cite India as one of the 10 economies that improved the most in the areas systematically measured by the World Bank. 

It would, however, be prudent to remember that though the index is meant to measure regulations directly affecting businesses, it does not directly measure more general conditions such as a nation's proximity to large markets, quality of infrastructure, inflation, or crime.

Ease of Doing Business index does not measure all aspects of the business environment that matter to firm or investors, such as the macroeconomic conditions, or the level of employment, corruption, stability or poverty, in every country. ‘Doing Business’ does not consider the strengths and weakness neither of the global financial system nor the financial system of every country. It also doesn’t consider the state of the finances of the government of every country. 

‘Doing Business’ does not cover all the regulation, or all the regulatory requirements. Other types of regulation such as financial market, environment, or intellectual property regulations that are relevant for the private sector are not considered. The ‘Doing Business’ report is not intended as a complete assessment of competitiveness or of the business environment of a country and should rather be considered as a proxy of the regulatory framework faced by the private sector in a country.

Last year the report had ranked India at 130. 

The annual report, which ranks countries on business-friendliness, procedural ease, regulatory architecture and absence of bureaucratic red tape, could not have come at a more opportune time for the government that is battling to help the economy claw out of a three-year slowdown.

The rankings could jump further in the coming year after factoring in the GST, which kicked in from July 1.