The “Ease of Doing Business (EODB)” Index is a Ranking System Established by the World Bank Group. Economies are ranked on their ease of doing business, from 1–190. Higher EODB Index Ranking means the Regulatory Environment is more conducive to the starting and operation of a local firm. The rankings are determined by sorting the aggregate distance to frontier scores on 10 topics, each consisting of several indicators, giving equal weight to each topic.
- 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
Rankings and Weightage on each of the above mentioned parameters are used to develop an overall EODB ranking. A high EODB ranking means the regulatory environment is more conducive for starting and operating of businesses.
India : EODB Index – World Bank
In India, Ease of Doing Business Rank were overall higher in Ludhiana followed by Hyderabad, Bhubaneshwar, Gurgaon Ahmedabad, New delhi, Jaipur, Guwahati, Ranchi, Mumbai, Indore, Noida and Bengaluru. India has been placed at 130th position among the 190 countries in the recently released World Bank’s ease of doing business index.
EODB (Ease Of Doing Business) Index – Explained
- The ease of doing business index is annually released by World Bank in its Ease of Doing Business Report. It was introduced in 2004.
- In EODB Index, ranking of country is based on index averages the country’s percentile rankings on 10 indicators each having equal weightage.
- A higher ranking of country in this list means that its regulatory environment is more conducive and favourable for the starting and operation of firms.
- 10 indicators are starting business, getting electricity, dealing with construction permits, registering property, protecting investors, getting credit, employing workers, trading across borders, paying taxes, enforcing contracts and resolving insolvency.
Key Highlights of 2017 EODB Index Report
- Top 10 Countries: New Zealand (1st), Singapore (2nd), Denmark (3rd), Hong Kong (4th), South Korea (5th), Norway (6th), UK (7th), US (8th), Sweden (9th) and Macedonia (10th).
- BIRCS Nations: India ranks lowest in Doing Business among the BRICS nations. Russia (40), South Africa (74), China (78), Brazil (123) and India (130).
- India’s Neighbours: Bhutan (73), China (78), Nepal (107), Sri Lanka (110), Pakistan (144) and Bangladesh (176).
- India Related Facts: In the ranking, India has made a substantial improvement in some areas such as electricity connection. But it has sliped in other areas, including payment of taxes and enforcing contracts.
- India has embarked on a fast-paced reform path and has acknowledged a number of substantial improvements.
- Some the improvement mentioned are electricity connections to businesses, paying taxes, electronic system for paying employee state insurance contributions, the Companies (Amendment) Act, electronic filing of integrated customs declarations, passage of the commercial courts and the Insolvency and Bankruptcy Code.
- Global Facts: Economies in all regions are implementing reforms easing the process of doing business.
- However, Europe and Central Asia continues to be the region with the highest share of economies implementing at least one reform.
- 96% of economies in the Europe and Central region have implemented at least one business regulatory reform.
- A record 137 economies around the world have adopted key reforms that make it easier to start and operate small and medium-sized businesses.
- Developing countries carried out more than 75% of the 283 reforms in the past year, with Sub-Saharan Africa accounting for over one-quarter of all reforms.