India’s shortcomings exposed by global survey

In statistics revealed by the World Bank’s Doing Business 2010 report, which ranks 183 countries according to the ease of doing business in their economies, India has ranked an appalling 133.

A high ranking on the index indicates that a country’s regulatory environment is conducive to the operation of business. The index averages countries’ rankings on 10 topics, assessed based on several indicators, and gives equal weight to each topic. Topics include a quantitative measure of regulations for starting a business, dealing with construction permits, employing workers, registering property, obtaining credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business – all as they apply to domestic small and medium-sized enterprises.

The Doing Business report encompasses two forms of data: readings of laws and regulations, and time and motion indicators that measure efficiency in achieving a regulatory goal (such as granting the legal identity of a business). Since each area measured involves a significant legal and regulatory component, most of those interviewed for the survey were lawyers.