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India’s BRAP 2024 and Its Integration with the World Bank’s B-READY Index

Last updated on October 5th, 2024 Posted on October 5, 2024 by NEXT IAS Current Affairs Team  740

Syllabus: GS3/ Economy

In News

  • India is aligning its state business readiness rankings with the World Bank’s B-READY index as part of the government’s efforts to improve the country’s ease of doing business. 

About

  • Alignment with B-READY Index: The BRAP rankings prepared by the Department for Promotion of Industry and Internal Trade will integrate select indicators from the World Bank’s B-READY index in their 2024 version.
  • Enterprise Survey Launch: The enterprise survey for the B-READY index is set to commence in October. The World Bank will collaborate with the Ministry of Statistics and Programme Implementation to determine a sample of industries for this enterprise study.
  • Participation Timeline: While the B-READY rankings will begin in 2024, India’s participation in this exercise will not occur until 2026.
    • The Union government has encouraged states to identify and rectify gaps identified in the B-READY evaluation to enhance their standings in the international index.

Rationale Behind B-READY Index

  • The B-READY index is intended to replace the previously used Ease of Doing Business rankings, which were halted in 2021 due to reported irregularities. This new framework aims to consider a broader array of factors when assessing a country’s business environment. 
  • Global financial institutions and multinational corporations are expected to use the B-READY framework to gauge regulatory and policy conditions within nations.
  • The B-READY index will provide an important tool for countries to understand and improve their business regulatory environments, helping attract investments and foster economic growth.

About Business-Ready (B-Ready) Index

  • The B-READY Index is an upcoming global ease of doing business ranking system developed by the World Bank. 
  • It is designed to replace the discontinued Doing Business Report (discontinued in 2021) and will assess and compare the business environment and regulatory framework across different countries.
  • Key Features of the B-READY Index:
    • Assessment of Business Environment: The index will evaluate countries based on the ease of starting, operating, and scaling businesses.
    • Enterprise Surveys: The ranking will rely heavily on enterprise surveys, which involve collecting data from businesses in different sectors to understand the regulatory challenges they face.
    • Comprehensive Indicators: It will track various indicators, including the ease of obtaining permits, taxation systems, access to credit, and other factors that influence the business environment.
    • Focus on Inclusivity: The index aims to ensure that diverse business environments, especially those in emerging economies, are fairly evaluated.
Important Points:
– India’s Previous Performance: India saw an improvement in its Ease of Doing Business Index ranking, moving from 142nd place in 2014 to 63rd in 2020.
– Recent BRAP Rankings: The government recently released the BRAP 2022 rankings, with Andhra Pradesh and Kerala emerging as the top performers.

Source: MoneyControl

 
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