The importance of ease of doing business
Firms in India are smaller and less productive than they should be, and burdensome regulation is one important culprit
Why care about the “ease of doing business" (EoDB)? Is improving the business regulatory environment a legitimate concern for policymakers, including here in India, or a Davos-derived diversion from the real work of economic development? Given the outsized media attention that various attempts to measure EoDB routinely garner, including, in particular, the World Bank’s famous, or infamous, annual Doing Business Index, and, in the Indian context, a ranking of states created by the department of industrial policy and promotion, this is a question worth posing.