Though India’s ranking has dropped in the Ease of Doing Business Report, it has ‘gained’ points compared to last year and Modi effect has still not been incorporated

From among 189 countries, India  has been ranked 142nd (53.97 points) in the World Bank’s ‘Ease of Doing Business Report’, released on 29th October-Singapore tops the list with 88.27 points, followed by New Zealand, Hong Kong, Denmark and South Korea.

India had 134th last year, which was adjusted to 140th as World Bank received fresh data. India fell back by 2 ranks as compared to its last year’s ranking. This fall is attributed to other nations performing much better. India’s points, though, have improved from 52.78 last year, to 53.97 this year.

These points have still not taken into consideration, the policies and programmes that the Modi Government has initiated in an attempt to improve the country’s business environment. "We do not want to send the impression that the drop in India's ranking is connected in any way with the current political situation (government),” and that “It is absolutely true that the new government of Mr Modi has made it very clear that they see the creation of a better investment climate and a more business friendly environment in India as a top priority. However, it is important to remember that the new Government did not come into office until the second half of May”, said Augusto Lopez-Claros, Director, Global Indicators Group, Development Economics of the World Bank Group.

Since the cut-off for the data collection for finalization of the report was 31st of May, the changes introduced in existing policies and the new policies adopted to improve the Indian business environment could not be considered while preparing this year’s report.

Being positive and appreciating the steps taken by the current Indian government, the World Bank’s officials said that it is highly likely that India would jump the ladder next year, owing to an improved business scenario.   

The Modi government initiated the ambitious Make in India plan and has been making a concerted push to make manufacturing and doing business in India an attractive proposition. Money life has written before about how PM Modi's aim of being among the most business-friendly nations may be easier said than done. Read here whether Modi’s target to put India in the top 50 in ‘Ease-Of-Doing-Business’ a pipedream?

Rita Ramalho, the lead author of the Doing Business report, said India's ranking has dropped, despite improvement in its business environment because other countries have improved much more in comparison.