The real effect of reforms is visible when the result improves in continuity. Recently, India has made noteworthy progress in improving the ‘Ease of Doing Business’ rank. It is conducted by the World Bank for 190 nations. In the recently published index, India reached 63rd place, from 77th in 2018. Ease of Doing Business Index assesses the business environment in Delhi and Mumbai.
Some key performance indicators where progress is quick and noteworthy are in getting a construction permit, getting electricity connection, resolving insolvency, payment of taxes, starting a business and trading across borders.
India’s rank in getting construction permits has improved from 184th in 2014 to 24th in 2019. It has become much systematic and easier to start new construction. Getting an electricity connection in India is much easier now. Its rank used to be 137 in 2014, now it is 22nd in 2019. It is also remarkable that no village is left unelectrified in India and the pace in giving a connection to rural households is unprecedented.
In resolving insolvency, India has jumped to 52nd rank in 2019 from its erstwhile 137th in 2014. The passing of the Insolvency and Bankruptcy Code 2016 has established a system and helped improve the environment. Ease of paying taxes improved to reach 115th in 2019 from 156th in 2014. With many facilitations for businesses, it has become much easier to do an export-import business in India. It has resulted in an improvement of rank in trading across borders indicator from 126th in 2014 to 68 in 2019. Another improver was in the starting of a business, where India’s rank has moved to 136th from 158th in 2014. With overall improvement in 7 out of 10 indicators measured for ranking a country under the Ease of Doing Business Index by the World Bank, India improved by 14 ranks in 2019 to reach 63rd position. It may be noted that India was ranked 142nd in 2014.
India remained in the world’s top ten improvers for three consecutive years in this index. During the year, India improved in 7 out of 10 indicators taken into consideration. The nation is ranked first amongst the South Asian countries.
Continuous improvement in the ‘Ease of Doing Business Index’ has helped the country to attract foreign investment. Entrepreneurship amongst the youth is also increasing.