Ease of Doing Business (EoDB) is a policy framework and regulatory index that measures the conduciveness of a country’s environment to the starting and operation of a local firm. Originally conceptualized by the World Bank in 2003 through its annual Doing Business Report, it evaluated economies across parameters like Starting a Business, Registering Property, and Enforcing Contracts. While the World Bank discontinued the report in 2021 (replacing it with the Business Ready (B-READY) framework), the concept remains a central pillar of India’s domestic economic policy.
In India, the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, leads the EoDB initiative. It implements the Business Reform Action Plan (BRAP), which ranks states based on the implementation of designated reform points. Key legislative enablers include the Insolvency and Bankruptcy Code (IBC), 2016, which streamlined exit processes, and the Companies (Amendment) Act, 2020, which decriminalized various technical procedural defaults to reduce the compliance burden.
UPSC Significance: This topic falls under GS Paper III (Indian Economy, Investment Models, and Industrial Policy) and GS Paper II (Governance). It is linked to the fundamental right under Article 19(1)(g) of the Constitution, which guarantees the right to practice any profession or carry on any trade or business.
Related Concepts:
- National Single Window System (NSWS): A digital platform for integrated regulatory clearances.
- Jan Vishwas (Amendment of Provisions) Act, 2023: Legislation aimed at enhancing "Ease of Living" and "Ease of Doing Business" by amending 42 Acts to decriminalize minor offences.
- Make in India (2014): The umbrella initiative driving manufacturing reforms.
- Goods and Services Tax (GST) Act, 2017: Simplified the indirect tax regime by subsuming multiple central and state taxes.