Ease of doing business in India jumped up six places: Report
In a report published by the Economist Intelligence Unit (EIU), the Business Environment Ranking (BER) scores for India show that doing business in the country is becoming steadily easier. India moved up six spots globally and climbed from 14th in the 2018-22 period to 10th in the 2023-27 period among the 17 economies in the Asian region that was in the survey.
The improvement is mostly attributable to gains in its scores for foreign trade and exchange controls, infrastructure, and technological readiness. India's highest-scoring category is market opportunities, helped by the large and growing domestic market that the country offers.
India has also benefited from global geopolitical trends in particular the tension between the US and China, as per the report.
In India, a strong, stable economy and access to a large labour supply form the basis of its appeal to investors. In addition, policy reforms are making it easier to do business in India, and the researchers at the EIU are expecting major improvements in areas such as infrastructure, taxation and trade regulation which will boost investment.
Another factor playing to India's advantage is its generally youthful demographic which promises good availability of labour. EIU forecasts India's working-age population to expand by almost 100 million in the period to 2030, pushing it comfortably past 1 billion, while that of China will fall by 40 million to under 950 million. India's median age of 28.4 years compares favourably with that of 38.4 years in China. The rise in population creates an additional incentive for the government to develop the manufacturing sector to absorb additional workers.
The EIU's Business Environment Ranking (BER) measures the attractiveness of the business environment in 82 countries on a quarterly basis, using a standard analytical framework with 91 indicators.