The World Bank released the ‘Doing Business Report (DBR, 2020)’ on 24th October 2019. India recorded a jump of 14 positions against its rank of 77 in 2019 to be placed now at 63rd rank among 190 countries assessed by the World Bank. India’s leap of 14 ranks in the is significant considering that there has been continuous improvement since 2015. This is the third consecutive year India features amongst the top 10 improvers. In last five years [2014-19] India has improved its rank by a whopping 79 positions .
The ‘Doing Business assessment’ provides objective measures of business laws and their implementation across 190 economies on 10 parameters affecting a business through its life cycle. The DBR ranks economies on the basis of Distance to Frontier (DTF), a rating that shows the gap of the particular economy with the best practice in the world. India’s DTF score improved to 71.0 this year from 67.23 in last year.
India has improved its rank in 7 out of 10 criteririe moving closer to international best practices (Distance to Frontier score). Improvements have also been registered in ‘Resolving Insolvency’, ‘Registering Property’, ‘Dealing with Construction Permits’, ‘Trading across Boards’ and ‘Paying Taxes’ indicators.
Important features of India’s performance this year :
1) Recovery rate under resolving insolvency has improved significantly from 26.5% to 71.6%.
2) The World Bank has recognized India as one of the top 10 improvers for the third consecutive year.
3) India continues to maintain its first position among South Asian countries. It was 6th in 2014.
4) The time taken for resolving insolvency has also come down significantly from 4.3 years to 1.6 years.