Bharat SainiLast Updated on November 27, 2017 by Bharat Saini
In the dynamic landscape of global business, the Ease of Doing Business (EDB) ranking by the World Bank has emerged as a crucial indicator of a country’s economic health and investment attractiveness. The 2018 report, released on October 31, 2017, marked a significant milestone for India. This comprehensive analysis delves into the details of India’s remarkable leap in the World Bank’s Doing Business Report 2018, exploring the underlying factors, reforms, and implications of this achievement.
India’s Historic Leap in World Bank’s Doing Business Report 2018
The Significant Jump
The 2018 World Bank’s Doing Business Report recognized India as one of the top five reformers, catapulting it to the 100th position among 190 nations. This jump of 30 places from the previous year was India’s highest ever increase, showcasing the nation’s dedication to fostering a conducive business environment. In 2014, India was ranked at 142, improving to 131 and 130 in the subsequent years. This consistent upward trajectory highlights India’s commitment to economic reforms and policy overhaul.
Key Performance Indicators
India’s impressive performance was noted across various parameters used to measure business ease. Significant improvements were observed in areas such as ‘Getting Credit’, ‘Dealing with Construction Permits’, and ‘Protecting Minority Investors’. Despite these advancements, challenges remained in ‘Starting a Business’, ‘Trading across Borders’, and ‘Registering Property’, indicating areas for future focus.
Global Context and Comparisons
In the global arena, New Zealand, Singapore, and Denmark led the rankings, with India showing notable progress in closing the gap with major economies like China. The comparison with neighboring countries like Pakistan and Bangladesh further underscored India’s reformative strides. This progress in the World Bank index has made India a more attractive destination for business investment.
India’s Reform Trajectory
Prime Minister Narendra Modi’s leadership played a pivotal role in India’s reform journey. The government’s measures to boost investment and create job opportunities were crucial in achieving this leap. Modi’s vision of bringing India among the top 50 countries in the ease of doing business resonated with the significant improvements seen in the rankings.
Comprehensive Reforms and Policy Changes
A raft of policy reforms was instrumental in enhancing India’s business climate. The introduction of structural reforms like the Bankruptcy Code, the implementation of the Goods and Services Tax (GST), and the push for digitalization and transparency in governance have been game-changers. These reforms, aimed at simplifying procedures and reducing bureaucratic hurdles, have significantly improved India’s business ecosystem.
State-Level Performances and Competitive Spirit
The World Bank’s analysis also extended to the ease of doing business at the state level. States like Gujarat, Telangana, Andhra Pradesh, Jharkhand, and Chhattisgarh showcased remarkable progress, indicating a healthy competitive spirit among Indian states. This state-level performance is a testament to the decentralized approach to economic reforms in India.
The Impact of India’s Improved Ranking
Boost to Government Policies
India’s improved ranking in the World Bank index served as a validation of the government’s economic policies. Amidst criticism over the GDP growth rate hitting a three-year low, this achievement provided a much-needed boost to the government’s reform agenda.
Signal to the Global Business Community
As noted by Annette Dixon, World Bank’s vice president for South Asia, India’s performance sent a clear message to the global community about its readiness and attractiveness as a business destination. This perception shift is crucial for attracting foreign investments and fostering global partnerships.
Continuous Improvement and Future Prospects
India’s journey in improving its ease of doing business ranking is ongoing. The effective implementation of GST and bankruptcy laws is expected to further enhance India’s position. The government’s focus on continuous improvement and adapting to best practices in business regulation promises a brighter economic future.
Conclusion
India’s historic leap in the World Bank’s Doing Business Report 2018 is a landmark in its economic narrative. This achievement, a result of comprehensive reforms and proactive government policies, has not only improved India’s global business standing but also set the stage for sustained economic growth and development. As India continues on its path of reform and transformation, it solidifies its position as a prominent player in the global economic arena, offering abundant opportunities for entrepreneurs and investors alike. The journey from being ranked 142 in 2014 to 100 in 2018 is just the beginning of India’s ascent towards economic excellence and a testament to its potential as a global business hub.
