Ranking of Indias business

environment
by select global bodies

BE Ranking by World Bank

Website:
http://rru.worldbank.org/BESnapshots/India/default.aspx

Provides

Overall Business Environment

Snapshots based on secondary
information and ranks countries.

Ranking of India's business environment by different global agencies

Indicator

Source

Business Environment Index

EIU - Global Outlook Report

Control of Corruption
Indicator

2007 Rank

Countrycoverage

61*

[82]

World Bank Group

92

[201]

Country Credit Rating

Institutional Investor

58

[174]

Index of Economic Freedom

The Heritage Foundation and

the Wall Street Journal

104

[157]

Political Risk Rating (ICRG)

PRS Group

88

[140]

Doing Business Ranking

World Bank Group

120

[178]

Quality of National Business

Environment Ranking

World Economic Forum Global Competitiveness

Report

27*

[121]

Trend
over
last yr.

Overall finding

The global rankings for India have been improving

or stayed steady, except for the International Country
Risk Guide political risk rating.

BE Ranking by weforum
Website: http://www.gcr.weforum.org/

Ranks countries in terms of the status of specific BE

Indicators.

The ranking is expressed in terms of a Global

Competitiveness Index.
In 2007-08 covered 131 countries.

INDIAs Ranking in Global Competitiveness Index

Rank
(Out of 131
countries)

Global Competitiveness Index 2007-2008

48
Global Competitiveness Index 2006-2007 (out of 122)

Subindex A: Basic requirements 74

108
101

4.21
4.92

55
36
96
37
62

4.13
4.66
4.07
4.93
3.17

26

4.36

26

4.81

4.52

5th pillar: Higher education and training

6th pillar: Goods market efficiency
7th pillar: Labor market efficiency
8th pillar: Financial market sophistication
9th pillar: Technological readiness
10th pillar: Market size
3
6.16

Subindex C: Innovation and sophistication factors

11th pillar: Business sophistication
12th pillar: Innovation
28

4.47

4.22

1st pillar: Institutions

48
4.32
2nd pillar: Infrastructure
67
3.45
3rd pillar: Macroeconomic stability
4th pillar: Health and primary education

Subindex B: Efficiency enhancers 31

4.33
42

3.9

Rank (Out of 131 countries/economies)

Business Competitiveness Index 2007-2008
31
Sophistication of company operations and strategy
Quality of the national business environment
33

27

Score
(Out of 7)

Macro economic stability

Rank
(Out of 131 countries)

Government surplus/deficit (hard data)

125

Government debt (hard data)

109

Inflation (hard data)

81

Health and primary education

Rank
(Out of 131 countries)

Infant mortality (hard data)

106

Life expectancy (hard data

104

Business impact of malaria

102

Malaria incidence (hard data)

101

Business impact of HIV/AIDS

100

Tuberculosis incidence (hard data)

98

HIV prevalence (hard data)

94

Business impact of tuberculosis

91

Quality of primary education

88

Primary enrollment (hard data)

85

Education expenditure (hard data)

69

Labor market efficiency

Rank
(Out of 131
countries)

Female participation in labor force (hard data)

116

Hiring and firing practices

102

Firing costs (hard data)

84

Rigidity of employment (hard data)

70

Non-wage labor costs (hard data)

66

Flexibility of wage determination

57

Cooperation in labor-employer relations

56

Infrastructure

Rank
(Out of 131 countries)

Quality of electricity supply

106

Telephone lines (hard data)

102

Quality of roads

82

Quality of port infrastructure

80

Quality of overall infrastructure

79

Quality of air transport infrastructure

61

Quality of railroad infrastructure

23

Technological readiness
Rank
(out of 131 economies)

Mobile telephone subscribers (hard data)

114

Personal computers (hard data)

105

Internet users (hard data)

95

Broadband Internet subscribers (hard data)

88

Availability of latest technologies

31

FDI and technology transfer

28

Firm-level technology absorption

22

Overall assessment based on GCR

While the competitive condition in India is better than many
other economies of the world, there is still much room for
improvement.
There are in fact four areas where serious attention need to be
given on a priority basis to improve Indias competitive ranking
and also to facilitate speedier economic development.

PRIORITY AREAS DEMANDING IMMEDIATE

ATTENTION

1. Improving the Quality of electricity supply, roads, port infrastructure

& overall connectivity
2. Controlling fiscal deficit, Government Debt, & inflation
3. Focus on social sectors particularly Health & Education
4. Reduction of gender disparity & improving Female participation in
labor force

Ranking by Doing Business Project

( a World Bank Group)
http://www.doingbusiness.org/ExploreEconomies/?econom
yid=89

The Doing Business Project (World Bank Group) presents

quantitative indicators on business regulations
and protection of property rights that
can be compared across 178 economies.
Doing Business 2008 is the fifth in a series of annual
reports investigating the regulations that enhance
business activity and those that constrain it.

Regulations affecting 10 stages of a

businesss life are measured:

starting a business,
dealing with licenses,
employing workers,
registering property,
getting credit,

protecting investors,
paying taxes,
trading across borders,
enforcing contracts and
closing a business.

CHANGE OF RANK IN 2008 OVER 2007

Ease of...

Doing Business
2008 rank

Doing Business
2007 rank

Change in rank

Doing Business

120

132

12

Starting a Business

111

93

-18

Dealing with Licenses

134

133

-1

Employing Workers

85

83

-2

Registering Property

112

108

-4

Getting Credit

36

62

26

Protecting Investors

33

32

-1

165

158

-7

79

142

63

Enforcing Contracts

177

177

Closing a Business

137

135

-2

Paying Taxes
Trading Across Borders

World Bank Ranking

by Governance Indicators

Websites
http://info.worldbank.org/governance/wgi/pdf/WGIDataTables.pdf
http://info.worldbank.org/governance/wgi/pdf/wgidataset.xls

Indias Percentile Ranking based on 2007 data on six dimensions of

governance are provided:
Voice

& Accountability
Political Stability and Absence of Violence/Terrorism
Government

Effectiveness
Regulatory Quality
Rule of Law
Control of Corruption

 Country scores are

reported as percentile ranks,

with higher values indicating better governance
ratings.

Percentile

ranks indicate the percentage of

countries worldwide that score below each
country.

For

example, a country with a percentile rank of

70 has 70 percent of countries scoring worse than
it, and 30 percent of countries scoring better.

PERCENTILE RANKS OF COUNTRIES

AS PER WORLD WIDE GOVERNANCE INDICATORS

Voice &
Accountability

Political
Stability &
Absence of
Violence

Government
Effectiveness

Regulatory
Quality

Rule of
Law

Control of
Corruption

Switzerland

100

99

100

93

100

98

Singapore

35

90

100

99

95

96

China

32

61

46

42

31

India

59

18

57

46

47

57

India: Change in Percentile Ranking

2007

2004

2000

1996

%Rank

% Rank

% Rank

% Rank

CHANGE

Voice & Accountability

59

61

58

52

Political Stability No
Violence

18

20

25

15

Government Effectiveness

57

56

51

51

Regulatory Quality

46

40

46

40

Rule of Law

56

55

58

62

Control of Corruption

47

47

43

39

INDICATOR

Relevant links:
www.govindicators.org
www.worldbank.org/wbi/governance/