The World Bank on October 24, 2019 released it’s annual report on Doing Business 2020: Comparing Business Regulation in 190 Economies. The study analyses the regulations that enhance business activity and those which constrain it. The Report claims that Data in Doing Business 2020 are current as of May 1, 2019 and the indicators are used to analyze economic outcomes and identify what reforms of business regulation have worked, where and why.
The Report states that the developing economies are catching up with the developed economies in the ease of doing business.
THE OVERVIEW OF REPORT
- Worldwide, 115 economies made it easier to do business
- The economies with most notable improvement in Doing Business 2020 are Saudi Arabia, Jordan, Togo, Bahrain, Tajikistan, Pakistan, Kuwait, China, India and Nigeria.
- Only two African economies rank in the top 50 on the ease of doing business; no Latin American economies rank in this group.
India’s position in Ease of Doing Business Report
India ranks 63 in the Ease of Doing Business Report of 2020 with a DB Sore of 71.0.
Hence, India’s rank jumped from 77th position last year to 63rd position in 2019. The Report has applauded India’s reform effort. The Report also notes that in India, judicial quality is a significant determinant of higher firm performance, for both exports and domestic sales. A conservative estimate suggests that a 10% increase in judicial quality increases firm sales by 1–2%.
“The case of India provides an example of successful implementation of reorganization procedures. India established an insolvency regime in 2016.30 Before the implementation of the reform, it was very burdensome for secured creditors to seize companies in default of their loans.”
INDIA’S REPORT CARD