Ease of Doing Business
The Doing Business Report (DB) is an annually published report by the World Bank Group since 2003 and aims to measure the costs to firms of business regulations in 190 countries. Economies are ranked on their ease of doing business. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm.
A nation's ranking on the index is based on the average of 10 subindices:
- Starting a business – Procedures, time, cost, and minimum capital to open a new business
- Dealing with construction permits – Procedures, time, and cost to build a warehouse
- Getting electricity – procedures, time, and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse
- Registering property – Procedures, time, and cost to register commercial real estate
- Getting credit – Strength of legal rights index, depth of credit information index
- Protecting investors – Indices on the extent of disclosure, extent of director liability, and ease of shareholder suits
- Paying taxes – Number of taxes paid, hours per year spent preparing tax returns, and total tax payable as share of gross profit
- Trading across borders – Number of documents, cost, and time necessary to export and import
- Enforcing contracts – Procedures, time, and cost to enforce a debt contract
- Resolving insolvency – The time, cost, and recovery rate (%) under bankruptcy proceeding
The Doing Business Report (DB) is an annually published report by the World Bank Group since 2003 and aims to measure the costs to firms of business regulations in 190 countries. Economies are ranked on their ease of doing business. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm.
A nation's ranking on the index is based on the average of 10 subindices:
- Starting a business – Procedures, time, cost, and minimum capital to open a new business
- Dealing with construction permits – Procedures, time, and cost to build a warehouse
- Getting electricity – procedures, time, and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse
- Registering property – Procedures, time, and cost to register commercial real estate
- Getting credit – Strength of legal rights index, depth of credit information index
- Protecting investors – Indices on the extent of disclosure, extent of director liability, and ease of shareholder suits
- Paying taxes – Number of taxes paid, hours per year spent preparing tax returns, and total tax payable as share of gross profit
- Trading across borders – Number of documents, cost, and time necessary to export and import
- Enforcing contracts – Procedures, time, and cost to enforce a debt contract
- Resolving insolvency – The time, cost, and recovery rate (%) under bankruptcy proceeding
SUBJECT Variables
OVERALL PERFORMANCE
- In 2020, India got an overall score of 71 on a scale of 100 on the Ease of Doing Business (EODB) index - equating to a 71% achievement on the index. India's performance has improved by 17% between 2015 and 2020.
- India is currently ranked 63rd amongst 190 countries in the ease of doing business. India's overall ranking has improved by 79 positions between 2015 and 2020.
- Reforms and changes made in dealing with construction permits, trading across borders and resolving insolvency helped improve India's overall ranking in 2020. However, India continues to lag behind in areas such as enforcement of contracts and registering a property where it is ranked 163 and 154 respectively in 2020.
DOING BUSINESS INDICATORS
Starting a Business
- In 2020, India scored 81.6 on a scale of 100 in the EODB indicator 'Starting a new business' - equating to a 82% achievement on the indicator. India's performance has improved by 13.2% between 2015 and 2020.
- India is currently ranked 136th amongst 190 countries in the ease of starting a new business in India. India's overall ranking has moved up by 22 positions between 2015 and 2020.
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