EODB index is a ranking system established by the World Bank Group. In the EODB index, ‘higher rankings’ (a lower numerical value) indicate better, usually simpler, regulations for businesses and stronger protections of property rights.
The research presents data for 189 economies and aggregates information from 10 areas of business regulation:
Starting a Business
Dealing with Construction Permits
Protecting Minority Investors
Trading across Borders
Rankings and weightages on each of the above mentioned parameters are used to develop an overall EODB ranking. A high EODB ranking means the regulatory environment is more conducive for starting and operating of businesses.
Among the chosen 189 countries for this index, India was ranked 134 in 2015 on the World Bank’s Doing Business index. Since then there has been a remarkable improvement.
Since 2014, the Government of India launched an ambitious program of regulatory reform aimed at making it easier to do business in India. The program represents a great deal of effort to create a more business-friendly environment.
The efforts have yielded substantial results with India jumping 4places on the World Banks’ Doing Business rankings.
Positive changes have led to this impressive improvement in India’s ranking on the EODB index:
Starting a Business: India’s ranking on this parameter has improved from 164 in 2015 to 155 in 2016. This improvement has been mainly on account of decrease in number of procedures and time taken to start a business in India.
Getting Electricity: India’s ranking on this parameter has improved from 99 in 2015 to 70 in 2016. The number of days taken to get a permanent electricity connection for a business is just 53 days, which is less than the average time taken in South East Asian and OECD member countries.
Apart from the above-mentioned parameters, India fairs particularly well in terms of ‘Protecting interests of Minority Investors’, where it ranks 8 among the 189 countries which are part of this index.
EDII Plan for EODB Improvement
Tamil Nadu has been ranked 19th All India vide the latest survey in 2016. EDII has set upon itself the task of organising workshops in early 2017 jointly with industry and government officials at District level to brainstorm and work out means of improving the EODB rankings through deeper understanding of the issues involved. TANSTIA and EDII will jointly organise these conferences with SME focus in mind.
Any information on this program can be sought from Dr Bhaskaran, DDP via phone at 8754590961 and email at email@example.com