India's ranking in the 'Ease of Doing Business Index' is sometimes seen in the news. Which of the following has declared that ranking?
Contents13
- AOrganization for Economic Cooperation and Development (OECD)
- BWorld Economic Forum
- CWorld Bank
- DWorld Trade Organization (WTO)
Show answer
Answer: (C) World Bank
Answer: (c) World Bank
The 'Ease of Doing Business Index' is published by the World Bank in its annual Doing Business Report.
It ranks countries on how easy it is to start and operate a business across 10 parameters.
India improved from rank 142 to 130 in 2016 due to improvements in starting a business, construction permits, and getting electricity.
Why not others?
- (a) OECD - Different economic reports.
- (b) World Economic Forum - Publishes 'Global Competitiveness Index' (different report).
- (d) WTO - Deals with trade rules, not business ease rankings.
Note: World Bank discontinued Doing Business Report in 2021, replaced by 'Business Ready (B-READY)' project.
Don't confuse Ease of Doing Business (World Bank) with Global Competitiveness Index (WEF).
The Ease of Doing Business Index ranks countries on 10 parameters like starting a business, getting construction permits, and accessing electricity, making it a key measure for investment climate.
India's ranking improved from 142 to 130 in 2016, making this a current affairs topic that year, though the World Bank discontinued this report in 2021.
Students often confuse World Bank's Ease of Doing Business with World Economic Forum's Global Competitiveness Index - knowing which organization publishes which report is crucial.
Ease of Doing Business Index
Indian Economy Ease of Doing Business Index
Ease of Doing Business Index: World Bank's Business Climate Assessment
World Bank publishes Ease of Doing Business Index annually
Ranks countries on 10 parameters for starting and operating businesses
Discontinued in 2021, replaced by Business Ready (B-READY) project
India improved from rank 142 to 130 in 2016
What it Measures
The Ease of Doing Business Index measures how easy it is to start and operate a business in different countries. Published by the World Bank in its annual Doing Business Report, it provides a quantitative assessment of regulations that affect domestic firms.
Ranks 190 economies worldwide
Lower rank number = better business environment
Focuses on regulatory efficiency and legal framework
Key Parameters Assessed
Parameter | What it Measures | India's Focus Areas |
|---|---|---|
Starting a Business | Procedures, time, cost to start | Single window clearance |
Construction Permits | Building permits process | Online approvals |
Getting Electricity | Electrical connection process | Power sector reforms |
Registering Property | Property transfer procedures | Digital land records |
Getting Credit | Credit bureau coverage, collateral laws | Insolvency framework |
Protecting Minority Investors | Corporate governance standards | Company law amendments |
Paying Taxes | Tax compliance procedures | GST implementation |
Trading Across Borders | Import/export procedures | Port modernization |
Enforcing Contracts | Judicial efficiency | Commercial courts |
Resolving Insolvency | Bankruptcy procedures | IBC 2016 |
India's Performance Trends
2014: Rank 142 → 2019: Rank 63 (major improvement under reform initiatives)
Key reforms: GST rollout, Insolvency and Bankruptcy Code, digital initiatives like GeM portal
Strong areas: Getting credit, protecting minority investors
Challenging areas: Enforcing contracts, construction permits (despite improvements)
Question Context
This question tests knowledge of which international organization publishes the Ease of Doing Business ranking that frequently appears in Indian economic news. The World Bank is the correct answer, not OECD, WEF, or WTO.
Trap: Confusing Ease of Doing Business (World Bank) with Global Competitiveness Index (World Economic Forum)
Trap: Assuming OECD publishes all major economic rankings - it focuses on developed country analysis
Trap: Thinking WTO ranks business ease - it only deals with trade rules and disputes
Current trap: Report discontinued in 2021, replaced by B-READY project - know both old and new systems
Major International Economic Organizations
Indian Economy OECD World Economic Forum World Bank WTO
International Economic Organizations: Roles & Key Publications
World Bank: Development finance, Ease of Doing Business Index
WEF: Global Competitiveness Index, annual Davos meeting
OECD: Developed country club, economic policy coordination
WTO: Global trade rules, dispute settlement mechanism
Organization Comparison
Organization | Primary Focus | Key Publications/Rankings | India's Status |
|---|---|---|---|
World Bank | Development finance, poverty reduction | Ease of Doing Business, World Development Report | Member since 1944 |
World Economic Forum (WEF) | Public-private cooperation | Global Competitiveness Index, Global Risk Report | Active participant |
OECD | Economic policy coordination (developed countries) | Economic Outlook, Better Life Index | Key partner (not member) |
WTO | Global trade rules and liberalization | World Trade Statistics, dispute rulings | Founding member 1995 |
Flagship Reports & Rankings
World Bank: Ease of Doing Business (discontinued 2021), Human Development Index (with UN), World Development Report
WEF: Global Competitiveness Index, Global Gender Gap Report, Future of Jobs Report
OECD: Better Life Index, Programme for International Student Assessment (PISA)
WTO: No rankings - focuses on trade dispute resolution and policy review mechanism
World Bank Group Structure
# World Bank Group
## IBRD
- Middle-income countries
- Market-rate loans
- Infrastructure finance
## IDA
- Poorest countries
- Concessional loans
- Grants for development
## IFC
- Private sector
- Equity investments
- Corporate advisory
## MIGA
- Political risk insurance
- Investment guarantees
- FDI promotion
## ICSID
- Investment disputes
- Arbitration services
- Investor-state casesTrap: All World Bank reports come from World Bank - HDI actually comes from UNDP
Trap: Assuming OECD only covers rich countries - India is a key partner in many initiatives
Trap: Confusing WEF (private foundation) with WHO (UN agency) - completely different roles
Trap: Thinking WTO publishes economic rankings - it only handles trade rules and disputes
India's Business Environment Reforms
Indian Economy
India's Business Environment Reforms: Key Policy Initiatives
Major jump from rank 142 (2014) to 63 (2019) in Ease of Doing Business
GST, IBC 2016, and digital initiatives as key reform drivers
Single window clearances and online approvals reduced bureaucratic delays
Major Reform Initiatives
Reform Area | Key Initiative | Impact on Business | Timeline |
|---|---|---|---|
Tax System | GST implementation | Single indirect tax, reduced compliance burden | 2017 |
Insolvency | Insolvency & Bankruptcy Code | Faster debt resolution, creditor protection | 2016 |
Digital Governance | Digital India, GeM portal | Online approvals, transparent procurement | 2015 onwards |
Labor Laws | 4 Labor Codes | Simplified compliance, flexible hiring | 2019-2020 |
Corporate Law | Companies Act amendments | Decriminalized minor violations | 2013, 2015, 2017 |
FDI Policy | Liberalized FDI norms | Automatic approval in most sectors | 2014 onwards |
Specific Improvements
Starting a Business: Online incorporation through SPICe+ form, reduced time from 27 to 16 days
Construction Permits: Single window clearance in major states, online building plan approvals
Getting Electricity: Saubhagya scheme improved grid connectivity, online application processes
Cross-border Trade: Port modernization, SWIFT clearances, reduced import/export documentation
Reform Implementation Process
%%{init: {"flowchart": {"wrappingWidth": 460}}}%%
flowchart TD
s1["`**Identify Bottlenecks**
World Bank assessment highlights regulatory barriers`"]
s2["`**Policy Design**
Central government drafts reform measures`"]
s3["`**Center-State Coordination**
Many reforms require state government implementation`"]
s4["`**Digital Infrastructure**
Online platforms replace physical paperwork`"]
s5["`**Monitoring & Feedback**
Regular assessment of implementation effectiveness`"]
s1 --> s2
s2 --> s3
s3 --> s4
s4 --> s5Trap: Crediting only central reforms - many improvements required state-level implementation
Trap: Assuming all reform benefits immediate - IBC took 2-3 years to show measurable impact
Current update: Post-2021, focus shifted to B-READY framework - different methodology than old rankings