Relationship between Ease of Doing Business and growth & development in India

Shashank S. Tiwari and D. M. Parikh*
Pandit Deendayal Petroleum University(PDPU)*

Abstract: The annual report prepared by the World Bank Group titled ‘Ease of Doing Business’ which ranks 190 countries based on 10 factors has lately been the talk in India since the country has recently observed the jump of 30 places. There are however many factors that the World Bank does not consider and hence the full picture of a country doesn’t get appropriately represented by a rank. This paper covers(a)correlation that exists between ‘GDP growth of a country and its Ease of doing business rank’,(b) factors which are not taken into account by World Bank when the entire business operating scenario is considered, (c)the ranking methodology (d) comparison of increase in India’s rank with increase in the rank of other countries over the years and (e) implications of this rank covered by a survey conducted. This paper aims to decipher how much does an increase of rank in ‘Ease of doing business’ 2018 actually mean to India i.e. in spite of the information provided in terms of an increase in rank, is India on the right path of achieving its potential?

Keywords: Growth,GDP, methodology, information