Ease of Doing Business

Abstract

The World Bank offers 10 criteria that serve as the foundation for its rating of various nations according to their ease of doing business (EODB). It is widely acknowledged that the countries’ FDI influx is impacted by this ranking. The likelihood of FDI inflows increases with ranking, and vice versa. This research aims to investigate the relative importance of ranking elements and their suitability for various sets of economic development phases. Additional characteristics that contribute to the overall ease of doing business are also examined in relation to their impact on investment flow. The main strategy of the study is to review the existing literature on the subject and list the many components and their effects. Improved rankings are thought to generally encourage FDI influx, although not all of the metrics are equally efficient and their weights vary case by case, according to the research review. Prioritizing extra commercial factors is inevitable when it comes to serving investors’ strategic interests. Overemphasizing the EODB rankings also discourages developing nations, particularly those in developing nations, from pursuing structural reforms because they attempt to prioritize a small number of important factors over others. In addition to this, study of the de facto implications of various indicators and aspects should also be conducted at the micro- or sub-economic level, as these factors undoubtedly affect the EoDB rankings on a macro level. Finally, the Indian context has been taken into consideration in order to make conclusions about the usefulness of this healthy exercise in developing the current study. India has improved its position over the past few years, however given current global and strategic issues, the country’s socioeconomic development goals cannot be wholly driven by the market and paired with the desire for self-reliance.