Topic– Indian Economy : Issues
3) Critically analyze the correlation between a jump in doing business ranking and improvement in business conditions and investment for India?(250 words)
Why this question
The article discusses the correlation between parameters of doing business ranking and actual changes on ground. In light of recent improvement in India’s ranking on doing business rankings is a matter of price and its reasons and impacts be discussed in detail.
Key demand of the question
The question expects us to explain the factors responsible for improvement in India’s rankings in brief and whether such improvements have positively altered business of all hues. We need to bring out both aspects – advantages of focussing on rankings, and whether we are compromising with other reforms which should have been focussed on.
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 brilliant improvement seen in India’s EODB rankings.
- Discuss the improvements that led to improvement in EODB in India. Discuss the steps that have been taken to improve ranking in specific areas
- Examine whether the jump in the ratings is aligned with the experiences of people conversant with the business climate.
- Give pros and cons of the ranking metric such as that it represents the sample space in cities, and that the metric is easy to game. Highlight that it does lead to improvement in business sentiments.
Conclusion – Give a fair and balanced view and discuss way forward.