Which one of the following is not a sub-index of the World Bank’s ‘Ease of Doing Business Index’?
Contents7
- AMaintenance of law and order
- BPaying taxes
- CRegistering property
- DDealing with construction permits
Show answer
Answer: (A) Maintenance of law and order
The correct answer is (A) — Maintenance of law and order.
The World Bank's Ease of Doing Business Index covers 10 areas like:
- 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.
'Maintenance of law and order' is NOT one of these sub-indices.
Tip: The index focuses on business regulations, not general governance or policing.
The Ease of Doing Business Index measures how easy it is to start and run a business in different countries, with 10 specific regulatory areas like getting permits and paying taxes.
India's ranking in this index became a major policy focus around 2014-2019, with the government actively working to improve rankings through regulatory reforms.
The trap here is that law and order sounds business-related but the index only covers specific regulatory processes, not broader governance issues.
World Bank Ease of Doing Business Index
Indian Economy Ease of Doing Business Index sub-index
World Bank Ease of Doing Business Index: 10 Sub-Indices & UPSC Focus
World Bank publishes annual Ease of Doing Business Index ranking 190 countries
Index measures business regulations across 10 specific areas, not general governance
Higher rank = easier to do business (1st rank is best)
India's rank improved from 142nd (2014) to 63rd (2019) under reform initiatives
What It Measures
The Ease of Doing Business Index ranks countries based on how regulatory frameworks affect business operations. It focuses on specific procedural and legal requirements that companies face, not broader economic conditions or governance quality.
10 Sub-Indices of the Index
Sub-Index | What It Measures | Key Metric |
|---|---|---|
Starting a Business | Procedures, time, cost to start | Days to incorporate |
Dealing with Construction Permits | Building permits and inspections | Days for warehouse permit |
Getting Electricity | Electrical connection process | Days to get electricity |
Registering Property | Property transfer procedures | Days to transfer property |
Getting Credit | Credit information and laws | Credit bureau coverage |
Protecting Minority Investors | Corporate governance rules | Disclosure requirements |
Paying Taxes | Tax compliance burden | Hours per year for taxes |
Trading Across Borders | Import-export procedures | Time to export/import |
Enforcing Contracts | Commercial dispute resolution | Days to resolve disputes |
Resolving Insolvency | Bankruptcy and recovery laws | Recovery rate for creditors |
Question Context
This question tests whether you know the index covers business regulations only. Options B, C, and D are actual sub-indices dealing with specific business procedures. Option A (Maintenance of law and order) relates to general governance and policing — not covered by this business-focused index.
Trap: Maintenance of law and order sounds important for business but is not a sub-index — the index only covers specific regulatory procedures
Confusion: Don't mix this with World Justice Project Rule of Law Index which does measure law and order
Memory Aid: All 10 sub-indices describe specific business processes (starting, registering, paying, trading) — not broad governance themes
India's Ease of Doing Business Reforms
Indian Economy
India's Ease of Doing Business Journey: Reforms & Rank Improvement
India jumped from 142nd rank (2014) to 63rd rank (2019) — biggest improver globally
Jan Aushadhi, GST, IBC, digital initiatives drove major improvements
Best improvements in Starting a Business (137th to 136th) and Resolving Insolvency
Reform Strategy
India focused on digital processes, single-window clearances, and time-bound approvals to improve business regulatory environment. The government launched specific initiatives targeting each sub-index rather than broad policy changes.
Key Reforms by Sub-Index
Sub-Index | Major Reform | Impact |
|---|---|---|
Starting a Business | SPICe form (single form for incorporation) | Reduced time and procedures |
Construction Permits | Online building plan approval in states | Faster clearances |
Getting Electricity | Online applications, pre-approved layouts | Reduced connection time |
Registering Property | Online property registration in multiple states | Digital stamp duty payment |
Paying Taxes | GST implementation, online tax filing | Simplified tax compliance |
Resolving Insolvency | Insolvency & Bankruptcy Code (IBC) 2016 | Faster resolution process |
Trading Across Borders | Electronic Cargo Tracking System | Reduced export-import time |
UPSC Trend: Questions often ask about specific reforms (like IBC, GST) rather than just rank improvements
Don't Confuse: Ease of Doing Business rank with Global Competitiveness Index or Innovation Index — different World Bank/WEF rankings