Impact of Ease of Doing Business Rank on Economic Performance

The Ease of Doing Business Rank (ER) is an initiative by world bank to have an assessment on how easy it is to do business in an economy based on certain parameters including starting a business, dealing with construction permits, registering property, getting electricity etc. A good doing business rank attracts the investors or business firms to start the business in a particular economy which directly or indirectly affects the GDP stats of that particular region. GDP or Gross domestic product is a very old term in the field of Economics. Despite of the fact that many economists and economics professors have criticized it in different dimensions, its role in public policy and society is still quite influential. The study is an attempt to assess the strength of relationship between the ER rank and GDP of different states and UTs. of India. The data used in this study was gathered from secondary sources. India's 28 states and eight union territories provided the data for this paper. The study's time frame spans from 2015 until 2020. The data sources used in this study are the economic survey, Niti Ayog, and the websites of the RBI. The results of the study shows that there is a positive relationship between ER rank (ER) and GDP. The study concludes with the fact that world bank should continue with evaluating the countries and provide ease of doing ranks which becomes a path-builders for those who are searching for different business or entrepreneurial opportunities.