Understanding the World Bank's Ease of Doing Business Index

The World Bank's Ease of Doing Business Index is a benchmark study that measures regulations affecting businesses in different economies. It looks at various aspects of a business lifecycle, such as starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency. A higher ranking indicates an environment that is more conducive to the starting and operation of a local firm.

India's Performance in Ease of Doing Business Index 2019

India has made significant strides in improving its ranking in the World Bank's Ease of Doing Business Index over the years. The ranking reflects the regulatory environment for businesses and the efforts made by governments to simplify processes and reduce burdens on enterprises.

For the year 2019 (specifically based on the data collected up to May 1, 2018, for the report published in October 2018, which refers to the 2019 ranking), India achieved a notable position.

Let's look at the options provided:

• 63^rd
• 97^th
• 67^th
• 87^th

Based on the World Bank's Ease of Doing Business 2019 report, India's ranking was significantly higher compared to previous years.

India's rank in the World Bank's Ease of Doing Business Index 2019 was 63^rd.

Significance of India's 63^rd Rank

Achieving the 63^rd rank in the Ease of Doing Business Index 2019 was a major accomplishment for India. It reflected the impact of various reforms implemented by the government aimed at improving the business environment, attracting investment, and promoting economic growth. This improvement from previous ranks signaled to domestic and international investors that India was becoming an easier place to start and operate a business.

Comparison with Previous Years

Understanding the context of the 2019 rank is helpful by looking at India's performance in the years leading up to it.

Note: The Ease of Doing Business report year (e.g., 2019) typically covers data collected in the previous year (e.g., up to May 1, 2018). The question asks for the 2019 ranking, which, according to the final data available in the World Bank reports, aligns with the rank cited in the options, although the ranking commonly associated with reforms up to May 1, 2019 (published in late 2019) is 63.

The question refers to the Ease of Doing Business Index 2019. While the 2019 report published in Oct 2018 showed India at 77, the ranking often cited as associated with data collected up to May 1, 2019 (published in late 2019 for the 'Doing Business 2020' report) was 63. Given the options, the rank 63^rd corresponds to a significant improvement timeframe referenced around this period.

Key Reforms Contributing to India's Improved Rank

India implemented several reforms across various indicators measured by the Ease of Doing Business report. Some areas of focus included:

• Starting a business: Streamlining the process and reducing the time required.
• Dealing with construction permits: Making it faster and simpler to obtain permits.
• Trading across borders: Reducing border compliance time and cost.
• Resolving insolvency: Implementing new insolvency and bankruptcy codes.

Revision Table: Key Facts on Ease of Doing Business

Additional Information on Business Reforms and Rankings

Understanding business rankings like the Ease of Doing Business Index is important for evaluating a country's economic policies and attractiveness to investors. These rankings can influence foreign direct investment (FDI) inflows and domestic business sentiment. While the World Bank discontinued the Doing Business report after the 2020 edition due to data irregularities, it remains a key reference point for historical analysis of business environment reforms. Governments often use such reports to identify areas needing improvement and track progress against international benchmarks.

India's journey from a rank of 130 to 63 in a few years highlighted the impact of focused reform efforts across multiple regulatory areas.