Ease of Doing Business 2020: India ascended 17 notches, ranked at 63rd position by The World Bank
The World Bank has released its 17th annual report on 'Ease of Doing Business 2020' to 'Compare Business Regulation in 190 Economies'. India has ranked at 63rd position in the said report published by The World Bank.
Ease of Doing Business 2020: 17th Annual Report by The World Bank
Ease of Doing Business 2020: Case Studies
The Ease of Doing Business 2020 features three case studies-- business regulatory reforms such as starting a business, getting credit, paying taxes, and resolving insolvency; contracting with the government, and employing workers.
Ease of Doing Business 2020: Highlights
1- Saudi Arabia, Jordan, Togo, Bahrain, Tajikistan, Pakistan, Kuwait, China, India, and Nigeria are the economies with the most notable improvement in Ease of Doing Business 2020.
2- Only two African economies have made to top 50 in the Ease of Doing Business 2020 while no Latin American economies ranked in the said group.
3- Saudi Arabia is the most improved economy in Ease of Doing Business 2020, with a total of eight reforms.
Ease of Doing Business 2020: What does the data show?
1- The Ease of Doing Business 2020 data suggests that a considerable disparity persists between low- and high-income economies on the ease of starting a business.
2- To launch a company in a low-income economy, an entrepreneur typically spends around 50% of income per capita while an entrepreneur in a high-income economy spends 4.2% of income per capita.
3- The average credit registry coverage of the adult population in low-income economies is less than 3%, compared to over 22% in high-income economies.
4- The average time to meet tax filing obligations is higher in low-income economies (275 hours) compared to high-income economies (149 hours).
|It is to be noted that greater ease of doing business is associated with increased entrepreneurship and generates better employment opportunities, higher government tax revenues, and improved personal incomes.|
Ease of Doing Business 2020: India's improvement
India has ascended 17 notches, ranking at 63rd position in the report published by The World Bank. The 'Make in India' campaign started by Prime Minister Narendra Modi focused on attracting foreign investment, boosted the private sector (especially manufacturing) and enhanced India’s overall competitiveness.
In the year 2015, the Government of India aimed at joining the 50 top economies on the 'Ease of Doing Business' ranking by 2020. Prime Minister Modi led administration targeted all the areas measured by Doing Business, with a focus on paying taxes, trading across borders, and resolving insolvency making a substantial leap upward. The reform measures by the Central Government raised India's Ease of Doing Business ranking from 130 in 2016 to 63 in 2020.
Ease of Doing Business 2020: 12 Areas of Business Regulation
|S.No.||Areas||What is measured?|
|1.||Starting a Business||Procedures, time, cost, and paid-in minimum capital to start a limited liability for people.|
|2.||Dealing with Construction Permits||Procedures, time, and cost, to complete all formalities to build a warehouse and quality control and safety mechanisms in the construction permitting system.|
|3.||Getting Electricity||Procedures, time, and cost, to get connected to the electrical grid; the reliability of the electrical supply; and the transparency of tariffs.|
|4.||Registring Property||Procedures, time, and cost, to transfer a property and the quality of the land administration system for people.|
|5.||Getting Credit||Moveable collateral laws and credit information systems.|
|6.||Protecting Minority Investors||Minority shareholder's rights in related-party transactions and in corporate governance.|
|7.||Paying Taxes||Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as post filling process.|
|8.||Trading Across Borders||Time and cost to export the product of comparative advantage and to import auto parts.|
|9.||Enforcing Contracts||Time and cost to resolve a commercial dispute and the quality of the judicial process for the people.|
|10.||Resolving Insolvency||Time, cost, outcome and recovery rate for commercial insolvency and the strength of the legal framework for insolvency.|
|11.||Empowering Workers||Flexibility in employment regulation.|
|12.||Contracting with the Government||Procedures and time to participate in and win a works contract through public procurement and the public procurement regulatory framework.|
Ease of Doing Business 2020: Country/Territory, ranking and Doing Business Score
|3||Hong Kong SAR, China||85.3|
|16||United Arab Emirates||80.9|
|65||Puerto Rica (U.S.)||70.1|
|90||Bosnia and Herzegovina||65.4|
|105||Trinidad and Tobago||61.3|
|113||Antigua and Barbuda||60.3|
|114||Egypt, Arab Rep.||60.1|
|117||West Bank and Gaza||60.0|
|120||Papua New Guinea||59.8|
|127||Iran, Islamic Rep.||58.5|
|130||St. Vincent and the Grenadines||57.1|
|139||St. Kitts and Nevis||54.6|
|158||Micronesia, Fed. Sts.||48.1|
|170||São Tomé and Príncipe||45.0|
|176||The Syrian Arab Republic||42.0|
|183||Congo, Dem. Rep.||36.2|
|184||The Central African Republic||35.6|
1- Freedom on the Net 2020
As per a report by Freedom House on Freedom on the Net 2020, India has ranked at 51st position. The report also labelled India’s internet as 'partly free'.
A. Obstacles to Access (12 points out of 25)
B. Limits on Content (21 points out of 35)
C. Violations of User Rights (18 points out of 40)
2- Global Economic Freedom Index 2020
As per a report by Fraser Institute, Canada on Global Economic Freedom Index 2020, India has ranked at 105th position. The report was released in September 2020.
3- World Press Freedom Index 2020
As per a report by Reporters Without Borders (RSF), India ranked at 142nd position out of 180 countries/territories. The report was released in April 2020.
Source: The World Bank