Context: The Global Trade Research Initiative (GTRI) said as India is preparing for its inclusion in the B-READY framework, its focus should be on leveraging global insights while championing local reforms.

India Specific Observations of think tank Global Trade Research Initiative (GTRI) 

• India may face challenges in achieving good scores on parameters like business entry, labour regulations, and international trade in the World Bank's Business Ready report, according to think tank GTRI.

• The Global Trade Research Initiative (GTRI) said as India is preparing for its inclusion in the B-READY framework, its focus should be on leveraging global insights while championing local reforms.

• India did not participate in the 2024 B-READY Report. However, there are some India-specific observations by the think tank GTRI. 

• Moderate Score in Business Entry: India’s business registration system is time-consuming and lacks complete digital integration.  

• Countries like Singapore achieve one-day online registration with minimal costs, setting a global benchmark. 

• Challenges in Labor Regulations: Despite introducing four labor codes, India faces slow and uneven implementation across states, affecting labor market flexibility and compliance ease. 

• Trade Inefficiencies: India’s customs processes are marred by delays, inconsistent enforcement, and high logistics costs, unlike Germany and Singapore, which excel in trade facilitation.  India, however, struggles with customs delays, inconsistent enforcement, and high logistics costs, which hinder trade efficiency.

• Low Score in Business Location: Regulatory inconsistencies and approval delays hinder the establishment of business facilities, affecting investment decisions.  India struggles with delays and inconsistent regulations and due to this India may achieve a low score.

• Positive Aspects: India is expected to perform well in the three core pillars of B-READY, highlighting strengths in operational and regulatory areas. These three key parameters are Quality of Regulations, Effectiveness of Public Services, and Operational Efficiency.

About Business Ready (B-READY) 

• It is the World Bank's new flagship report benchmarking the business environment and investment climate in most economies worldwide.

• The report assesses the regulatory framework and public services directed at firms, and the efficiency with which regulatory framework and public services are combined in practice.

• It is replacing the World Bank Group's earlier Doing Business index. In 2020, the World Bank decided to pause the publication of its Doing Business report following a number of irregularities regarding changes to data in previous reports.

• Pillars of B-READY: For each topic, B-READY considers three pillars. 

• Pillar I: Regulatory Framework – Focuses on the rules and regulations firms must follow during their life cycle, highlighting those that support clarity, fairness, and business sustainability, and those that hinder entrepreneurship. 

• Pillar II: Public Services – Covers government-provided services and infrastructure that support regulatory compliance and business activities, with an emphasis on digitalization, interoperability, and transparency. 

• Pillar III: Operational Efficiency – Measures how easily firms can comply with regulations and utilize public services relevant to their operations.  

• Indicators: B-READY analyzes 1,200 indicators to identify policy reform opportunities, using data from primary sources to highlight key aspects of each topic. 

• Three Themes: B-READY assesses three key themes across 10 topics. 

1. Digital Adoption: Evaluates digital integration by governments and businesses in the business environment. 

2. Environmental Sustainability: Analyzes regulatory provisions affecting business operations with a focus on sustainability. 

3. Gender: Examines the collection of gender-disaggregated data and the implementation of gender-sensitive regulations and programs. 

• Scoring: B-READY generates two sets of scores for each economy. 

1. Topic Scores: Averaged from scores across the three pillars, based on indicators that reflect firm flexibility and social benefits. 

2. Pillar Scores: Averaged from scores across 10 topics, standardised to range from 0 to 100. 

• Data Collection: B-READY collects data through expert questionnaires for regulatory and public service aspects, and through World Bank Enterprise Surveys for operational efficiency, with updates to expert data annually and firm-level data every three years. 

• Global Expansion: Covers 50 economies in 2024, with plans to reach 180 by 2026. 

• Focus on Reform: B-READY shifts focus to inclusivity, sustainability, and efficiency in evaluating business environments.