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India inches up a notch in WB ease of business ranking (Relevant for GS Prelims and Mains Paper II and III)

India stands at 130th rank in Ease of doing business
India improved its position to 130 in the World Bank Ease of Doing Business 2017 report.

Improving India’s ranking in the report has been a key target of the government headed by Prime Minister Narendra Modi. India which had been ranked 130 in the 2016 report, was placed at 131 according to the revised rankings for last year, thus reflecting a marginal improvement.

India could not improve its ranking better despite reform measures that have been lauded in the report because other countries around it in the ranking list also did well last year, World Bank officials who oversaw the report said .

Report 
WB official praised the government for the reforms it undertook last year and noted that India had made a noticeable improvement in the distance to frontier (DTF) score — an absolute measure of progress towards best practices.

While ranking is relative, DTF score is an absolute figure.  India was 35th in DTF improvement last year. India has improved and is at 55.27 compared with last year’s 53.93, while the perfect score is 100. New Zealand that is ranked first has a DTF score of 87.01.

About DTF score
DTF (distance to frontier) measure complements the annual ease of doing business ranking, which compares economies with one another at a point in time. The score is given out of 100.

About Ease of Doing Business Report
Word Bank Doing Business reports, introduced in 2004, review business regulations and their enforcement across countries —190 this year. The latest edition takes into account developments in one year up until June 1, 2016.



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