Ease of Doing Business
Ease of Doing Business is an index formerly published annually by the World Bank that ranked countries on the regulatory environment faced by small and medium-sized domestic firms, covering parameters such as starting a business, getting credit, enforcing contracts, and resolving insolvency.
The Doing Business report was published by the World Bank from 2003 until it was discontinued in 2021 following a data integrity controversy. At its peak it was one of the most closely watched international competitiveness benchmarks, influencing government policy reforms worldwide.
India's performance on this index was a major policy priority for successive central governments. In 2014, India was ranked 142nd out of 189 countries. Through a sustained reform effort spanning digitisation of processes, simplification of construction permits, easing of tax compliance, and improvements in insolvency resolution (with the introduction of the Insolvency and Bankruptcy Code in 2016), India climbed to 63rd position by 2020—a dramatic improvement. The government of India attributed much of this progress to DIPP (now DPIIT) reforms at the central level and state-level Business Reform Action Plans (BRAP).
Even after the World Bank discontinued the index, the DPIIT continued to release its own State Business Reform rankings, and external agencies such as the IMD World Competitiveness Center publish alternative competitiveness assessments. India's rise in such rankings is frequently cited by the government as evidence of improving investment climate.
For equity investors and foreign portfolio investors, ease of doing business improvements are a leading indicator of increased formal business activity, higher tax compliance, better contract enforceability, and faster bankruptcy resolution. These translate into broader corporate sector health—more companies entering the formal economy, fewer disputes tying up capital, and faster recycling of assets in distress.
Key metrics that India improved included the number of days to start a business (reduced from over 30 to under 20 during this period), the cost of registering property, the availability of credit bureau coverage, and the time taken to resolve insolvency cases after the IBC was implemented.