By Dasarathi Mishra
The Ease of Doing Business (EoDB) study was developed by the World Bank in 2003. The first report on “Ease of Doing Business” was published in 2003, covering 133 economies. Over time, its coverage expanded to 190 economies, becoming a widely used global benchmark for comparing business regulations.
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The study was conducted every year until 2020, when the World Bank discontinued it following concerns over data irregularities. Concerns were raised about the quality of data used for the mammoth exercise.
The objective of the study from its inception was to measure how regulations affect the lifecycle of a business—from starting operations to closure—and to encourage governments to implement reforms that promote a more business-friendly environment.
India’s performance in the EoDB rankings has shown improvement over time, reaching 63rd position globally. The country has performed relatively well in areas such as getting electricity and getting credit, where it ranks 23rd and 25th respectively. However, significant challenges persist in areas like starting a business (rank 136) and registering property (rank 154), indicating procedural complexities and administrative bottlenecks.
In the Indian federal context, states play a crucial role in implementing reforms to improve the business climate. Odisha has emerged as a notable performer, becoming the 7th state to successfully undertake EoDB reforms stipulated by the Ministry of Finance, Government of India. As a result, the state became eligible to mobilize additional financial resources of Rs 1,429 crore through open market borrowings.
The Government and RBI have contributed positively to enhance ease of doing business through regulatory reforms. As mentioned, the report was discontinued by the World Bank in 2021 due to data credibility issues. It argued that the data focused mainly on regulations, ignoring real-world challenges like infrastructure, policy uncertainty, and governance quality. It did not account for modern priorities such as sustainability, ESG factors, and inclusion. So a change was needed.
The World Bank has developed Business Enabling Environment (BEE)/B-READY framework which is a modern, improved successor to EoDB, designed to measure not just regulatory ease but the real business ecosystem, including governance quality, service delivery, and sustainability.
Core features of the framework are: a three-pillar structure to assess regulatory framework, public services and operational efficiency. It has lifecycle approach as it covers 10 key areas across the life cycle of a firm, such as business entry, utilities, labour, finance, taxation, trade, dispute resolution, competition, workers and consumers. The new framework is being rolled out in phases, with pilot data already released for select countries. It is expected to gradually become the new global benchmark.
There are three pillars:
Pillar I: The Regulatory Framework pillar focuses on the rules that shape business activity. This pillar examines the laws and regulations that businesses must follow, such as how to register a company, labor protections, and rules for resolving disputes. It also considers how governments set up these rules to promote transparency, fair competition, and property rights.
Pillar II: The Public Services pillar measures the support governments provide to help businesses comply with regulations. This includes the availability of online systems for permits, digital tax platforms, and infrastructure at borders for trade.
Pillar III: The Operational Efficiency pillar captures how easy it is for businesses to comply with rules and use public services. This pillar looks at the real-world experience of firms, such as how long it takes to get utilities connected, how easy it is to participate in public procurement, and the reliability of digital payment systems.
The pillars are mutually reinforcing. Globally, the new system called B–Ready is being introduced by the World Bank in 2026. Even without a global ranking, India continues to improve its business ecosystem. Government is implementing Business Reforms Action Plan (BRAP 2026) to improve state-level ease of business. This is a step in right direction.
The author is a former CGM, Reserve Bank of India.
