What was the rank of India in the Ease of Doing Business Index for 2019, as per the Doing Business Report (DBR), 2020?
- (1)146
- (2)63
- (3)77
- (4)96
Answer
Why
Correct — option (2), 63.
The World Bank released its Doing Business Report 2020 on 24 October 2019. PIB's release that day, from the Ministry of Commerce & Industry, says India “has recorded a jump of 14 positions against its rank of 77 in 2019 to be placed now at 63 rd rank among 190 countries”.
The release's table labels the two columns 2018 and 2019, with India's overall rank moving from 77 to 63. That 2019 column is the ranking published in DBR 2020, which is how the stem describes it.
Check: 77 – 14 = 63. The answer is 63.
The idea to remember: Doing Business 2020, released 24 October 2019, placed India 63rd of 190, up 14 places from 77th.
Why the others are wrong
- (1)146 — 146 is not a rank PIB's release gives for India in either report. A rank of 146 would place India far below its previous position, while DBR 2020 recorded a rise.
The release gives India's move as from 77 to 63 among 190 countries.
- (3)77 — 77 was India's rank in the previous report, Doing Business 2019, which PIB's release calls “its rank of 77 in 2019”.
DBR 2020 moved India up 14 places from there, to 63.
- (4)96 — 96 matches neither rank in PIB's release. India moved from 77 to 63 in DBR 2020; a rank of 96 would have meant a fall below 77.
The figure for DBR 2020 is 63 of 190.
Concept
The World Bank's Doing Business report measured business regulation and its enforcement. PIB's 2019 release describes it as covering 190 economies on ten parameters affecting a business through its life cycle.
The release says the ranking rests on the Distance to Frontier score, the gap between an economy and global best practice. India's score rose to 71.0 from 67.23.
A report's title year runs ahead of its release: Doing Business 2020 was published in October 2019.
RPSC's 2021 syllabus lists “Economic Reforms and Liberalization” and the current status and initiatives of the “Industry, Service and Trade sectors” under Economic Concepts and Indian Economy.
On 16 September 2021 the World Bank Group announced it would discontinue the Doing Business report. Its statement says data irregularities on Doing Business 2018 and 2020 had been reported internally in June 2020.
For states, Rajasthan's Economic Review 2020-21 says DPIIT issues Business Reform Action Plans, and the Department of Industries is the State's nodal department for Ease of Doing Business initiatives.
Key facts
- 24 October 2019: World Bank released Doing Business Report 2020; India ranked 63 of 190, up 14 from 77 (PIB).
- PIB: India's Distance to Frontier score rose to 71.0 from 67.23; India improved its rank in 7 of 10 indicators.
- Largest gain: Resolving Insolvency, from 108 to 52; Construction Permits from 52 to 27 (PIB).
- PIB: India was among the top 10 improvers for the third consecutive year.
- 16 September 2021: the World Bank Group announced the decision to discontinue the Doing Business report.
Source: PIB, Ministry of Commerce & Industry, 24 October 2019. Columns labelled 2018 and 2019 in the release; three smaller gains not shown.
Study next
Common traps
- Confusing the report's title year with its release year: DBR 2020 came out on 24 October 2019 and its ranking is labelled 2019 in PIB's table.
- Picking the previous rank: 77 was India's place in Doing Business 2019, before the 14-place rise.
- Mixing the World Bank's country ranking with DPIIT's state rankings under the Business Reform Action Plan.
A question can ask India's rank in a named edition of an international index, with earlier ranks among the options.
A question can also ask in which indicator India improved most, or which body publishes a ranking.
Related PYQs
Ease of Doing Business ranking for the states in India is released by –
- (1) Department of Industry and Commerce
- (2) Department for Promotion of Industry and Internal Trade
- (3) Investment Promotion Bureau
- (4) Rajasthan Small Industry Corporation Limited (RAJSICO)
Answer(2)
Same theme, ease of doing business, at state level. That question asks who releases the Ease of Doing Business ranking for the states in India (RPSC's key: Department for Promotion of Industry and Internal Trade); this one asks India's rank in the World Bank's DBR 2020.
Practice
- practice — not a real PYQ
According to PIB's release on the World Bank's Doing Business Report 2020, India's rank improved the most in which indicator?
- (a)Resolving Insolvency
- (b)Construction Permits
- (c)Trading Across Borders
- (d)Registering Property
Answer(1) — Resolving Insolvency rose from 108 to 52, a gain of 56 places. Option (2) gained 25, and options (3) and (4) gained 12 each. - practice — not a real PYQ
The World Bank Group announced its decision to discontinue the Doing Business report in
- (a)June 2020
- (b)October 2019
- (c)September 2021
- (d)December 2021
Answer(3) — The World Bank Group's statement is dated 16 September 2021. Option (1) is when data irregularities were reported internally, option (2) is when DBR 2020 was released, and option (4) is after the announcement.