India has shown a marked improvement in the World Bank's Ease of Doing Business rankings for 2017. There are many improvements in India's business environment and sentiments. However, India needs to push harder to improve its ranking. A Fibre2Fashion report.
Every year, the World Bank Group prepares a report on 190 economies, comparing their business regulations for domestic firms for the ease of doing business. The World Bank compares different business regulations of each country's domestic firms to measure acceptance or complications to start and carry out small-to-medium-sized businesses. Eleven key business protocols are considered to rank the countries. The protocols include starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency, and labour market regulations.
All the figures covered in this article are valid till June 1, 2016, excluding the paying taxes parameter, which has been calculated for the period of January-December 2015. In the Ease of Doing Business 2017 report, the economies are ranked from 1 to 190. The report issues results based on two collective procedures: the ease of doing business ranking and the distance to frontier score, where both procedures are based on distance to the frontier score. The ease of doing business ranking is calculated by sorting the collective distance to the frontier scores further rounded to 2 decimal points. The distance to frontier score measures the difference between an economy's performance and quantify the best performer across the complete list of 36 protocols for 10 doing business protocols (excluding the labour market regulations). In distance to frontier score scale, the best performing frontier is given the score - 100 and the poorest performer is given the score- 0, on a scale from 0 to 100.
This year onwards, the Doing Business report added one more country (Somalia) in its economies calculation which made total 190 economies in its total list. The post filing process was added to the paying taxes protocol. In total, four protocols like starting a business, registering property, enforcing contracts and labour market, the regulation included a gender factor. A new trial protocol has been developed on selling to the government.
India in Ease of Doing Business 2017
According to the World Bank report of Ease of Doing Business 2017, India moved up by one place from the 2016 rankings and registered its position at 130 out of total 190 countries.