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Strategy to Cover Ease of Doing Business ranking for UPSC Examination

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Categories: Prelims, Published: 4th Jan, 2022

Ease of doing business is an index published by the World Bank. It is an aggregate figure that includes different parameters which define the ease of doing business in a country. At present, ease of Doing Business is a much-debated topic today. In this blog, GS SCORE has discussed the strategy to prepare ‘Ease of Doing Business’ Report from prelims and mains perspective. Ease of doing business report is important for the IAS Examination, from economy and polity (governance) subject point of view.

Ease of doing business is an index published by the World Bank. It is an aggregate figure that includes different parameters which define the ease of doing business in a country. Reports published by such reputed institution/organisation is important from UPSC preparation point of view. Questions from such reports can be asked in prelims, mains and interview stage of Civil services examination.

The Ease of Doing Business (EoDB) index is a ranking system established by the World Bank Group. Among the chosen 190 countries2, India ranked 63rd in Doing Business 2020

In the EODB index, ‘higher rankings’ (a lower numerical value) indicate better, usually simpler, regulations for businesses and stronger protections of property rights.

India has improved its rank in six out of the 10 indicators and has moved closer to international best practices on seven out of 10 indicators.

The six reforms recognised in this year’s report are starting a business, getting electricity, dealing with construction permits, getting credit, paying taxes and trading across borders.

The Ease of Doing Business ranking measure 190 economies and aggregates information from 12 areas of business regulation:

  1. Starting a Business of all
  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
  11. Employing workers
  12. Contracting with the government.

Analyse Previous Year Question Paper:

Analysis of the previous year question papers is the first step that aspirants should look to do for covering the Ease of Doing Business report. Analysis of the previous year question paper will aspirants in identification of the areas and the type of questions asked from this segment.

Direct Question

Statement based Question

Q. Which of the following is not the sub-Index of World Bank’s ease of doing business?

a) Maintenance of Law and order

b) Paying Taxes

c) Registering of property

d) Dealing with Construction Permits

Q. With reference to ‘Ease of Doing Business’ report, consider the following statements;

  1. India as per the latest report of 2020, has jumped 14 places to be ranked at 77th position
  2. India continued to be at the first position among South Asian countries

Which of the statements given above is/are correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Learn Art of Integrating Subject (topics):

Aspirants should learn the art of integrating subjects (topics), so that broader thinking pattern can be developed. It is highly advisable to aspirants that they should not think “Ease of Doing Business” report is important only from prelims point of view.  Such important reports can be utilised in economy, polity, ethics and even Essay mains writing.

Take an example of Goods and Services Tax (GST), aspirants should understand that; implementation of GST has definitely provided an answer to the various question related to business anomalies. India can improve in Ease of Doing business ranking, if progressive steps can be taken. These progressive policies and Ease of Doing business ranking are directly proportion to each other.

Why /How to Read Ease of doing business Report?

Why?

Ease of doing business is key to achieve objectives of initiatives such as Make in India which will boost the manufacturing sector. India has seen an improvement of rankings in - protecting rights of minority investors, getting credit and resolving insolvency, enforcing contracts and dealing with construction permits.

If, ease of doing business ranking of any country improve, the image of the country in the global market improves. Ranking improvement change the perspective of investors about the concerned country.  It changes the image of the country in the eyes of the global market into a favourable country to conduct business. The rankings are expected to act as a guide to investors to take/make decisions. Hence better the ranking in the report more the favourability.

How?

Reports like ‘Ease of doing businesses is important for Civil services examination but, the major issue aspirants face is, how to cover these topics? It highly advisable that aspirants should go for trusted source to prepare these reports. Aspirants looking to prepare ‘Ease of doing business‘ report from World Bank website has to read the voluminous content to extract useful facts and figures.  It always better to go for well documented and comprehensively compiled content like the one develop by GS SCORE. Aspirants can cover such reports from the sources provided below:

  1. World Bank Website
  2. GS SCORE Report Series
  3. Indian Yearly Book
  4. Newspapers (the Hindu, Indian express)
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