The ranking is based on reforms that are necessary to achieve sound living standards, moderate inflation and high growth
In the World Bank’s (WB) 2017 Doing Business ranking, India stands at the 130th place in a list of 190 nations—just a spot higher than in the 2016 rankings. Is this a worrisome sign? According to an article published in Mint (goo.gl/4PHo6n) and a paper brought out by a faculty member at the Indian Institute of Management, Bengaluru (goo.gl/66QF6g), the answer is “not so much". A curious case is being made that higher rankings do not really imply good economic outcomes such as higher foreign direct investment (FDI) inflows or higher gross domestic product (GDP) growth. I argue that this assessment is based on dodgy economic foundations.