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Source: The post B-READY Index has been created, based on the article “B-READY for business: India’s investment culture needs strengthening” published in “Business standard” on 23 April 2024.
UPSC Syllabus Topic: GS Paper 2- international relations-Important International institutions, agencies and fora, their structure, mandate.
News: The article discusses India’s preparation for the new World Bank Index Business Ready (B-READY), replacing the defunct Ease of Doing Business (EoDB) Index.
For details information on Lessons from the death of the ease of doing business index read here
What is the B-READY Index?
The B-READY Index is a new metric designed by the World Bank to assess business environments, set to launch in September 2025.
It aims to replace the now-defunct Ease of Doing Business Index and plans to cover 180 economies.
This index focuses on broader qualitative assessments, including regulatory quality and environmental considerations.
How is India Preparing for the B-READY Index?
India is gearing up for the B-READY Index through proactive steps taken by the Department for Promotion of Industry and Internal Trade (DPIT).
DPIT is conducting bi-monthly meetings with nodal ministries to evaluate responses to over 1,300 questions from the B-READY questionnaire.
These meetings aim to assess and enhance India’s position in terms of business readiness and attractiveness for foreign investments.
Why India need B-READY Index?
Addressing Subdued FDI: India has seen limited success in attracting foreign direct investment (FDI), making the B-READY Index crucial for enhancing its investment climate.
Improving Business Environment: The B-READY Index aims to go beyond the former Ease of Doing Business metrics by including qualitative assessments that more accurately reflect the business landscape.
Policy and Implementation Gaps: Examples like Apple’s vendors leaving India and Vinfast’s subsidy issues highlight the need for clearer policies and better communication, issues the B-READY Index seeks to address.
Encouraging Multinational Presence: A refined index could help attract more multinationals, as current policy uncertainty has deterred significant investments.
Question for practice:
Discuss India’s preparation for the B-READY Index and its significance in improving the country’s business environment and attracting foreign investments.
