World bank recently rolled out Ease of Doing Business report, and India’s rank significantly improved in it. The report lists down the countries with least hassle to start a business, ranking countries in the order of least nuisance to start a venture to most nuisance to do so. China and India proved out to be the stars of the Asian Continent.
This can be used to state that the work of central government in this area has had appreciable results. The government has been working on multiple avenues and Ease of Doing Business signifies that optimal work has been done in the same.
There are some other indexes that can be used to quantify and score the performance of the economy of a country in a certain domain. We have listed the major ones below, starting with the Ease of Doing Business rank.
Ease of Doing Business Rank
The Ease of Doing Business Rank is a direct scale to measure Central Government’s policies to promote business and entrepreneurship environment in the country. India has secured the rank of 77 out of 190 nations in the world bank’s database. This statistic has tremendously improved compared to previous years since last year India ranked 100 and in 2014, it ranked 142.
The cities that are considered while doing an assessment for this are Delhi and Mumbai. Both cities are judged on 11 parameters (listed below). The credit can be given to many of government’s initiatives like GST, due to which many processes were simplified, Insolvency and Bankruptcy.
With multiple initiatives laid down by Prime Minister Shri Narendra Modi, it looks like the government will soon make India rank among the top 50 countries of the report.
A previous survey conducted under the Business Reform Action Plan also ranked the Indian states where it is the easiest to do business. Andhra Pradesh came out to be on the top spot based on reforms and action points to ease regulations and compliance, as well as the availability of resources and business climate.
HDI is the acronym for Human Development Index. It is a statistical score which comprises of life expectancy, education level and the median earning in a common man’s life. It is used to measure a country’s development by the United Nations Development Program and was developed by Amartya Sen, Mahbub ul Haq, and Gustav Ranis.
The latest report of HDI was rolled out on September 14, 2018, based on data from 2017 where India ranked 130 out of 189 recorded countries with a score of 0.64. This rank has also improved since India used to rank 135 in 2014 with a score of 0.618. The scale is from 0 to 1 where 1 is the best score and 0 is worst.
Methodologies and Logic are iterated and improved every year to have a better analysis hence it is better to assess one’s performance via the score. The score is framed in terms of whether people are able to be or do things that they desire.
EPI denotes Environmental Performance Index, which is used to assess a country’s condition related to the environment, ecology, and pollution. This index has been formulated by Yale University and Columbia University in collaboration with the World Economic Forum and the Joint Research Center of the European Commission There are a number of factors that are considered for calculating this rank(listed below). They can be broadly classified into the following:-
- Environmental Health, which includes Health Impacts, Air Quality, Water and Sanitation services.
- Ecosystem Vitality – Biodiversity & Habitat.
- Agriculture, Forests, Water Reservoirs, Agriculture
- Fisheries, Biodiversity & Habitat.
- Climate & Energy
In 2018, India has ranked 177 out of 180, which is pretty disgraceful, given we also rank last if we only consider the environmental health category. The performance of our country has declined in almost every parameter, mainly due to the increase in Air Pollution. In 2014, India ranked 155 out of 178.
Happiness Index appears that surveyors go to person to person to ask people how are they doing, but it isn’t true. It is annually published by the United Nations Sustainable Development Solutions Network. It is edited by John F. Helliwell, Richard Layard, and Jeffrey Sachs.
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Parameters of Happiness Index is based on factual data, which includes GDP per capital, Social Support on various issues, Corruption perception, freedom to make life choices and a healthy life expectancy. All in all, it judges how much happy a person would be living in a particular country.
United Nations releases world happiness report, in which countries are assessed on a scorecard of 0-10, 0 being worst. India ranked 133 out of 156 countries recorded. In the predecessor years, a rank of 122 and 117 were obtained out of 156 countries in the years 2017 and 2015 respectively.
HUNGER INDEX – GHI
GHI composition Diagram
Includes Child Mortality, Inadequate food supply, and Child Under nutrition
0 is best
14 – 99/120 17.8 || 18 – 103/119
Methodologies improve time to time
GLOBAL COMPETITIVENESS INDEX
GCI conveys the economic proficiency of an economy. There are 12 indicators that are used to calculate the index. They are as following:
In 2018, India ranked 40 out of 137 countries. This index has shown an improvement, all the credits to the central government. In previous years, India ranked 55 and 71 out of 141 nations, in 2017 and 2014 respectively. The major credit for improvement can be attributed to steady inflation and a wide spectrum of technological reach due to smartphone market boom and the introduction of Jio.
We may conclude that the performance of the central government can be assessed via these indexes. There are some areas where the government has done blockbuster work whereas some areas need drastic improvement.
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