Country Rankings

DOING BUSINESS REPORT

The Doing Business Report has been measuring the underlying characteristics of an economy such as the regulatory system, efficacy of bureaucracy and the nature of business governance. These directly affect the long run growth and performance of the economy. The parameters on which the World Bank ranks countries in the Doing Business Report are:

1. Starting a Business
2. Dealing with Construction Permits
3. Getting Electricity
4. Registering Property
5. Getting Credit
6. Protecting Minority Investors
7. Paying Taxes
8. Trading across Borders
9. Enforcing Contracts
10. Resolving Insolvency

The 2016 report rankings are gauged on indicators upto June 2015 and are based on the average of each economy's distance to frontier score for the 10 parameters. The cities covered for the 2016 report were Delhi and Mumbai. Delhi had 53% weightage and Mumbai contributed to the remaining 47% of the weightage.

	Ease of Doing Business Rank	Starting a Business	Dealing with Construction Permits	Getting Electricity	Registering Property	Getting Credit	Protecting Minority Investors	Paying Taxes	Trading across Borders	Enforcing Contracts	Resolving Insolvency
2015	142	158	184	137	121	36	7	156	126	186	137
2016	130	155	183	70	138	42	8	157	133	178	136

• In the 2016 report India ranked 130th successfully mobilising itself 12 ranks upward from the 142nd rank in the 2015 report.
• The Report found that in India the establishment of debt recovery tribunals reduced nonperforming loans by 28% and lowered interest rates on larger loans, suggesting that faster processing of debt recovery cases cut the cost of credit.
• The Report commended India for being the most improved country in South Asia i.e. for the biggest increase in the distance to frontier score in the region of South Asia  since the 2004 report.
• In 2004, it took 127 days to start a business in India. Since major strides have been taken to ease the doing of business, as of 2015 it takes only 29 days to start a business in India.
• In May 2015 the government adopted amendments to the Companies Act that eliminated the minimum capital requirement. Indian entrepreneurs no longer need to pay 1,00,000 Indian rupees ($1,629)—equivalent to 111% of income per capita—in order to start a private company.
• In Delhi the process for getting an electricity connection was made simpler and faster by eliminating the internal wiring inspection by the Electrical Inspectorate. In Mumbai the procedures and time required to connect to electricity were reduced by improving internal work processes and coordination.
• In 2015 India simplified preregistration and registration formalities (publication, notarization, inspection, other requirements)
• The Report commended the State of Karnataka for digitizing land records and opening them to public access thus empowering citizens.

ECONOMIC FREEDOM OF THE WORLD

In the Economic Freedom of the World index, Fraser Institute ranks countries on the basis of the policies and institutions in the country that support economic freedom. Economic freedom is epitomised by personal liberty, voluntary exchange, free entry into the market, competition, security of person and private property. This measurement is derived from 42 parameters in five categories:

1. size of government: expenditures, taxes, and enterprises;
2. legal structure and security of property rights;
3. access to sound money;
4. freedom to trade internationally; and
5. regulation of credit, labour, and business

	2013 Rating	2012 Rating
Size of Government	7.55	7.69
Legal System and Property Rights	5.26	5.60
Sound Money	6.72	6.73
Freedom to Trade Internationally	6.07	6.17
Regulation	6.55	6.74

In the 2015 report (which provided rankings upto the year 2013), India was ranked 114th having scored 6.43 on an index of 10.

In the 2014 report, India was ranked 110th with an overall score of 6.49 on an index of 10.

The Report also noted that India was ranked 2nd among the ten countries with lowest values for both Life Satisfaction and Life control.

INDEX OF ECONOMIC FREEDOM

The Index of Economic Freedom measures the index of each person to control his or her own labour and property freely without coercion or constraints on liberty. The Index of Economic Freedom also charts the positive relationship between economic freedom and positive social and economic goals. This index is measured on the basis of 10 quantitative and qualitative factors, grouped into four broad categories, or pillars, of economic freedom:

1. Rule of Law (property rights, freedom from corruption);
2. Limited Government (fiscal freedom, government spending);
3. Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and
4. Open Markets (trade freedom, investment freedom, financial freedom).

For the 2015 report, the cut-off date for measuring data was June 30, 2014.

• In the 2015 report, India was ranked 128th with a score of 54.6 and was considered Mostly Unfree showing little progress in economic freedom.
• It ranks 26th in the Asia Pacific Region.
• In the 2014 report, India was ranked 120th with a score of 55.7

	2015 Rank	2014 Score
Overall Rank	128	120
Property Rights	50	53
Freedom From Corruption	95	97
Fiscal Freedom	92	95
Government Spending	54	62
Business Freedom	165	171
Labour Freedom	142	49
Monetary Freedom	171	166
Trade Freedom	150	142
Investment Freedom	144	142
Financial Freedom	106	107

The report stated that the state’s presence in the economy remains extensive through state-owned enterprises and wasteful subsidy programs that cause chronically high budget deficits.  It lamented the absence of a well functioning legal and regulatory framework and noted that a weak rule of law was exacerbated by corruption.

The 2015 report further noted that India signed civil commercial nuclear agreements with United States of America and Australia for the free trade of nuclear technologies to bring electricity.

It observed that though some sectors had grown due to structural reforms, the government had not institutionalised open environments to promote the economic well being of the whole population.

The report concluded that India is a considerable force in world trade but that its economy is operating at a level that does not match its potential.