EASE OF DOING BUSINESS (EoDB)

EASE OF DOING BUSINESS (EoDB)

TOPIC: Economy

Context- A research report by think tank ORF identifies a staggering 26,134 imprisonment clauses in the thousands of laws that govern businesses in India.

• According to the report, “Of the 1,536 laws that govern doing business in India, more than half carry imprisonment clauses.

Concept-

Ease of Doing Business:

• The Doing Business Report is the flagship publication of the World Bank Group that benchmarks business regulations in 191 economies.
  • The Doing Business Report measures regulations that enhance business activity and those that constrain it.
• The Ease of Doing Business (EoDB) index is a ranking system established by the World Bank Group wherein the ‘higher rankings’ (a lower numerical value) indicate better, usually simpler, regulations for businesses and stronger protections of property rights.
• The Ease of doing business ranking is an indication of an economy’s position relative to that of other economies.
• In India, these indicators relate to business regulations for small and medium sized firms located in Delhi and Mumbai based on standardized case scenarios.
• The indicators are from 11 areas of business regulation such as: Starting a Business, Dealing with Construction Permits, Getting Electricity, Registering Property, Getting Credit, Protecting Minority Investors, Paying Taxes, Trading across Borders, Enforcing Contracts, and Resolving Insolvency.