Each year, the ‘Doing Business’ organisation in association with the ‘World Bank’ releases country wise scores on the ease of doing business in a country. These scores reflect how easy it is for start-ups and small businesses to register their company and get access to resources with respect to local rules, regulations and laws governing businesses.
India’s Doing Business Rank for 2020
India’s Rank for the year 2020 is ‘63’ on a scale of 1-190 (in a comparison of 190 economies). India’s rank has been steadily improving year on year and we’ve come a long way from the 142nd rank in the year 2014 to the 63rd rank in 2020. India has shown consistent improvement in its ranking for 3 years in a row.
India’s Ranking on Doing Business topics
India is ranked on a range of ‘Doing Business’ topics which indicate the procedures, time and costs involved in completing tasks and formalities within a country. Here’s India’s rank card by the World Bank on the major ‘Doing Business’ topics for the year 2020.
Doing Business Topic
Starting a Business
Dealing with Construction Permits
Protecting Minority Investors
Trading across Borders
As per these rankings, the insights we can glean are that ‘Protecting Minority Investors’ is the easiest to do in India and ‘Enforcing Contracts’, the most challenging.
Change in Scores from 2019
In comparison with the scores from 2019, there has been a significant upside of 3.5% in the score for India. India’s score for 2019 was 67.5 whereas in the year 2020, the score has increased to 71.0.
India’s Doing Business Rank for the year 2020 is ‘63’ on a scale of 1-190 (in a comparison of 190 economies)
What’s in it for me?
The Indian Government is eager to reduce compliance and make it easier for both domestic and foreign businesses to thrive in India. Doing Business by the World Bank gives a clear picture for local businesses (especially for domestic small and medium sized companies) on the easiest and hardest regulations in India. Although the data for 2021 is yet to arrive, keep an eye out for the 2021 report.
You will obtain city-wise insights on the procedures, time and cost involved in starting a business so that you can decide the best city to set up a base. Before the Government stepped in to ease the business regulations in India, we suffered from poor rankings by the World Bank. However, with all the measures being taken by the government departments and ministries to create a thriving start-up ecosystem, the business environment in India has become highly conducive and will only improve further in the coming years.