Topic – Indian economy : Issues
6) Discuss the various factors that led to meteoric rise in India’s Ease of doing business ranking and critically analyze the impact of such improvement?(250 words)
Why this question
This article discusses the various reform measures which helped India in securing a huge jump in its EODB rankings. The article also examines what India’s improvement in EODB metric actually indicates. Doing business ranking has been in the news recently and requires detailed preparation.
Key demand of the question
The question is divided into two parts. In the first part we need to discuss the various reform measures which enabled India to secure an improvement in rankings. Thereafter we need to critically examine whether the improvement in rankings actually translate to a change in ground level situation or is it merely a surface level change.
Discuss – Here your discussion should list out the various reforms which have brought about an improvement in India’s Doing Business ranking.
Critically analyze – When asked to analyze, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary. When ‘critically’ is suffixed or prefixed to a directive, all you need to do is look at the good and bad of something and give a fair judgement.
Structure of the answer
Introduction – Highlight the improvement in India’s ranking in Doing Business report.
- Discuss about the reforms in various areas which have helped India improve its score on metrics such as getting construction permit, trading across boundaries etc. Also discuss the reforms in areas where India registered an improvement in doing business metric.
- Discuss the advantages that this improvement would have on improving business metrics such as the perceived improvement in business sentiment, attracting FDI, taking the economy on the pathway of reforms etc
- Discuss the limitations of an approach that gives too much importance to improving India’s ranking such as the criticism that the rankings are not reflective of actual ground situation and represents a miniscule sample space etc
Conclusion – Give your view on India’s improvement on the EODB rankings and what it means for the Indian economy and the next steps that should be on India’s reforms agenda.