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.
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
- 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.
- 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.
- 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).
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.