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Ease vs cost of doing business in India

Business index rankings have become a substitute for addressing the fundamental constraints faced by entrepreneurs

Topics
Ease of Doing Business | Indian Economy | Companies

India improved its global rank in the World Bank’s Ease of Doing Business Index (EDBI) 79 positions from 142nd in 2014, when the Modi government came to power, to 63rd in 2019.

But despite a massive jump in its EDBI rankings, India’s gross domestic product growth (GDP) rate fell more than 4 per cent points between 2016 and 2019 and private investment as a share of GDP fell by over 3 per cent points, from 25 per cent of GDP in 2004-2013 to under 22 per cent of GDP in 2016-2019. The problem with EDBI is that it is easy to game it to show better results — without it …

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