India’s Doing Business Leap: Decoding the 63rd Rank and the Reform Engine Behind It 

India’s notable climb to 63rd place in the World Bank’s 2020 Doing Business Report, marking a 14-spot jump and the third consecutive year as a top global improver, signifies a profound transformation driven by a sustained, multi-year reform agenda aimed at streamlining business regulations.

This achievement, which represents a massive 79-position leap since 2014, was fueled by dramatic improvements in key areas such as Resolving Insolvency—where the introduction of a new bankruptcy code slashed resolution times from 4.3 years to 1.6 years—as well as in Dealing with Construction Permits and Trading Across Borders, largely through digitalization and process simplification. Beyond the ranking, this consistent progress signals a crucial shift in India’s economic governance, sending a powerful message to global investors of a more predictable and business-friendly environment while simultaneously empowering domestic entrepreneurs by reducing bureaucratic red tape and fostering a more dynamic, competitive economy poised for future growth.

India’s Doing Business Leap: Decoding the 63rd Rank and the Reform Engine Behind It 

On October 24, 2019, a piece of news from the World Bank sent a ripple of optimism through Indian boardrooms and international investment circles alike. India had, for the third year running, been named one of the World Bank’s top 10 global improvers in its annual Doing Business Report (DBR), climbing an impressive 14 positions to secure the 63rd rank among 190 countries. 

This wasn’t just another statistical improvement; it was the culmination of a sustained, five-year reform blitz that has seen India catapult itself 79 places up the ladder since 2014. But what does this ranking truly represent? Beyond the headlines and the celebratory press releases lies a deeper story of systemic change, bureaucratic reinvention, and a nation’s determined push to become a global business magnet. 

More Than a Number: Understanding the “Distance to Frontier” 

The Doing Business Report is often simplified into a league table of countries, but its real value lies in its methodology. The ranking is based on a “Distance to Frontier” (DTF) score, which measures how close an economy’s business regulations are to global best practices. A score of 100 represents the best possible performance. 

In DBR 2020, India’s DTF score jumped to 71.0, up from 67.23 the previous year. This four-point gain is significant—it indicates that India isn’t just moving past other countries who are stagnating; it is genuinely closing the gap with the world’s most business-friendly environments. This shift from relative improvement to absolute, substantive progress is the real headline. 

The Star Performers: Where India Made Strides 

A granular look at the data reveals the specific fronts where India’s bureaucratic logjams are being cleared. The most dramatic improvements tell a story of tackling long-standing, complex challenges head-on. 

1. Resolving Insolvency: A Quantum Leap (108th to 52nd, +56) 

This is arguably the most transformative improvement. For decades, India’s insolvency regime was a creditor’s nightmare, with recovery rates abysmally low and cases languishing in courts for over four years. The introduction of the Insolvency and Bankruptcy Code (IBC) in 2016 was a game-changer. 

• The Reform: The IBC created a time-bound process for resolving insolvency, shifting the power from debtors to creditors. 

• The Result: The World Bank data speaks volumes. The average time taken for resolution plummeted from 4.3 years to just 1.6 years. Even more stunningly, the recovery rate for creditors skyrocketed from 26.5 cents on the dollar to 71.6 cents. This single reform has injected discipline into the corporate ecosystem, assuring investors that capital can be recovered efficiently. 

2. Dealing with Construction Permits (52nd to 27th, +25) 

The image of a business owner chasing dozens of permits to start construction was a classic symbol of India’s red tape. This has been systematically dismantled. 

• The Reform: The implementation of online single-window systems in cities like Mumbai and Delhi, coupled with the elimination of redundant approvals and streamlined building plan approvals. 

• The Result: The process of obtaining construction permits became significantly faster, cheaper, and more transparent. This not only benefits large real estate developers but also small entrepreneurs looking to set up a shop or a factory. 

3. Trading Across Borders (80th to 68th, +12) 

As a nation with ambitious export goals, smoothing the flow of goods across its borders is critical. India focused on leveraging technology and infrastructure. 

• The Reform: The relentless push for digitalization through platforms like ICEGATE, the implementation of RFID-based tracking for containers, and port community systems reduced the physical documentation and waiting times for export and import. 

• The Result: The time and cost for both exporting and importing were slashed, making Indian products more competitive in the global market and reducing input costs for manufacturers reliant on imported components. 

Other Notable Improvements: 

• Registering Property (166th to 154th, +12): While still a low rank, the improvement indicates efforts to digitize land records and streamline sales registrations. 

• Paying Taxes (121st to 115th, +6): The introduction of the Goods and Services Tax (GST) and its accompanying online portal simplified the tax filing process, even though challenges remain. 

• Getting Electricity (24th to 22nd, +2): Maintaining a top-tier rank in this category shows that the focus on providing reliable and transparent electrical connections continues. 

The Human and Economic Insight: What This Means for India 

Beyond the metrics, this consistent improvement signals a fundamental shift in India’s economic governance. 

• A Signal to Global Investors: The sustained reform momentum makes India a more predictable and reliable destination for foreign direct investment (FDI). When a country is named a “top improver” for three consecutive years, it tells institutional investors that the regulatory environment is on a permanent upward trajectory, de-risking their long-term bets. 

• Empowering the Domestic Entrepreneur: The biggest beneficiaries of these reforms are India’s own small and medium enterprises (SMEs). For a small business owner, a faster construction permit means they can start operations and generate revenue sooner. A simplified tax regime means less time with accountants and more time with customers. This boosts formalization, productivity, and job creation at the grassroots level. 

• From Red Tape to Red Carpet: The narrative around doing business in India is changing. The perception of an impenetrable, bureaucratic maze is slowly giving way to one of a system that, while still complex, is actively being fixed. This psychological shift is as important as the reforms themselves. 

The Road Ahead: Challenges and the Unfinished Agenda 

Celebrating the success is essential, but so is recognizing the journey is far from over. Rank 63 is a remarkable achievement, but it also places India in a league of more advanced economies where the competition is fiercer and the remaining reforms are more nuanced. 

• Persistent Pain Points: While India excelled in 7 indicators, it saw a decline in others like Enforcing Contracts (where it still ranks 163rd). The judicial system, burdened by delays, remains a significant hurdle for businesses engaged in commercial disputes. 

• The Implementation Gap: Reforms launched in New Delhi must percolate down consistently to all states and municipalities. The experience of a business in a tier-2 city must mirror that of one in Mumbai or Delhi. 

• The Human Element: Ultimately, technology-driven reforms must be complemented by a shift in the mindset of regulatory officials—from being controllers to being facilitators. 

Conclusion: A Nation in a Hurry 

India’s ascent in the Doing Business rankings is not a fluke; it is the output of a deliberate, data-driven, and persistent reform agenda. It reflects a national consensus that for India to harness its demographic dividend and achieve its economic potential, it must create an environment where enterprise can thrive without unnecessary friction. 

The jump to 63rd place is a milestone, not the finish line. It proves that the engine of reform is running. The challenge now is to maintain this momentum, tackle the tougher, institutional challenges like judicial delays, and ensure that the ease of doing business becomes a lived reality for every entrepreneur across the length and breadth of the country. The world is watching, and India is finally open for business—on its own, modernized terms.