India has been placed at the 77th rank in the Ease of Doing Business rankings 2019 by the World Bank, recording a jump of 23 positions from the 100th spot in 2017. Last year, the country had improved its rank by 30 places; it has gone up by 65 positions in the last four years. Through the Ease of Doing Business assessment, the World Bank lays out measures of business regulations and enforcement across 190 economies on ten parameters. It also ranks countries according to Distance to Frontier (DTF) which shows the gap of an economy to the global best practice. According to a PIB statement, India’s DTF score improved to 67.23 from 60.76 this year.
10 Points About Ease Of Doing Business Rankings By World Bank
- The World Bank has recognised India as one of the top improvers for the year for the second consecutive year, stated PIB.
- India has recorded the highest improvement in two years by any other large economy since 2011 by improving its rank by 53 positions.
- India is the first BRICS and South Asian country to be recognized as top improvers in consecutive years.
- India has also been placed at first position among South Asian countries as against 6th in 2014.
- Out of the 10 indicators, India’s performance has been improved in six parameters. The most significant improvement has been recorded in ‘construction permits’ and ‘trading across borders’.
- In grant of construction permits, India’s rank improved from 181 to 52 this year, an improvement of 129 ranks in a single year. In ‘Trading across Borders’, India’s rank improved by 66 positions moving from 146 in 2017 to 80 in 2018.
- In the category, ‘starting a business’, time span reduced from 30 to 16 days in Delhi and 29.5 to 17 days in Mumbai. PAN, TAN, DIN are now merged with SPICe making it a single form for company incorporation.
- For ‘access to credit’, rank improved from 29 to 22 while the DTF improved from 75 to 80. Secured creditors will now be repaid first during business liquidation hence given priority over other claims
- The statement has said that the improvement has taken place due to the comprehensive and complex reforms of the government. It included consulting stakeholder, understanding challenges of the industry and simplifying process.
- India’s rank is based on a survey of industry in two cities — Mumbai and Delhi, where participants provide a feedback.