The World Bank’s Ease of Doing Business Index was an important global report that ranked countries based on how simple and smooth it is to run a business in each one. It looked at how fast and easy it was to start a business, get licenses, pay taxes, and follow laws. A higher rank meant it was easier to do business in that country. This index helped attract more investment and encouraged governments to make business-friendly rules. Even though the report is now discontinued, its role in guiding business decisions and government reforms was very important.

What is the Ease of Doing Business Index?

The Ease of Doing Business Index was a ranking by the World Bank that showed how easy it is to start and run a business in a country. It looked at various steps such as starting a company, registering property, getting construction permits, connecting electricity, getting credit, protecting investors, paying taxes, and trading across borders. Countries that made these steps simple and fast scored higher. This report helped businesses know which countries were business-friendly and encouraged governments to improve their systems.

Why Did Investors Care About This Index?

Investors always want to put their money in countries where doing business is smooth and less risky. The Ease of Doing Business Index showed them where the rules were simple, transparent, and quick to follow. If a country had a high ranking, it meant fewer hurdles like long paperwork, slow processes, or corruption. That gave investors more confidence that their business will run without trouble and grow well. So, this index helped them make smart decisions about where to invest.

How Did It Help Governments?

Governments used the index to understand what changes were needed to support businesses. If their country had a low ranking, it meant they had to work on reducing delays, simplifying rules, and using more digital systems. For example, some countries started online company registration or made tax payments easier. This helped boost the country’s image and created jobs, increased tax collections, and supported local industries. So, the index pushed governments to work in the right direction.

Which Areas Did the Index Measure?

The index measured 10 key areas: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency. All these are daily needs for businesses. If these steps were easy and fast in a country, the score was higher. This gave a clear view of how business-friendly a country’s system was from start to end.

How Did India Perform in the Index?

India made big improvements over the years in this index. It jumped from 142nd position in 2014 to 63rd in 2019. This happened because the government made it easier to start a business, paid attention to construction permits, started online systems for taxes, and improved access to credit. These reforms made India more attractive to both Indian entrepreneurs and global investors. It showed the world that India was becoming a better place for doing business.

Why Was the Index Discontinued?

The World Bank stopped publishing the Ease of Doing Business Index in 2021. This happened because there were concerns about data errors and some countries trying to influence their scores. The World Bank decided to work on a new and better system called “Business Ready” to give more fair and trustworthy results. Although the index is gone, its influence on reforms and business policies is still remembered.

How Can New Entrepreneurs Use This Knowledge?

Even if the old index is no longer available, the idea behind it is still useful. Entrepreneurs should always check how easy it is to do business in a state or country. Look for things like how fast you can register a company, how good is internet support, how simple is tax filing, and what kind of legal help is available. This can save time and avoid problems later. A smooth setup gives better chances of success.