India Ranks 10th Globally In Terms Of Ease Of Doing Business: EIU
According to an Economist Intelligence Unit (EIU) report, India appears to have moved ahead in terms of ease of doing business. According to EIU's BER scores for India, doing business in the country is becoming increasingly easier. India has risen six places in the survey's 17-country sample since the previous report. From 14th to 10th in the period 2018-22, India now ranks 10th in terms of business environment for the period 2023-27.
The increase is primarily due to improvements in its scores for foreign trade and exchange controls, infrastructure, and technological readiness. Market opportunities is India's highest-scoring category, owing to the country's large and growing domestic market. India has benefited from global geopolitical trends, particularly tensions between the United States and China.
The report explained: “Over the last decade, global manufacturing supply chains have been through a period of turbulence. Geopolitical strains between the US and China, the rapid adoption of e-commerce, the covid-19 pandemic and the Russia-Ukraine war have led to a rethinking of strategies for reshoring sourcing, the diversification of supply routes and the localisation of manufacturing. Many companies have become wary of supply-chain over reliance on China– “the world’s factory” and are implementing or considering “China plus one” strategies aimed at building production across multiple markets.”
The appeal of India to investors is based on its strong, stable economy and access to a large labour supply. Furthermore, policy reforms are making it easier to do business in India, and EIU researchers anticipate significant improvements in areas such as infrastructure, taxation, and trade regulation, which will boost investment.