Lok Sabha Question No. 2386 (UNSTARRED), answered on 2024-12-10
Subject: Economist Intelligence Unit
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Dhairyasheel Sambhajirao Mane, Shri Sudheer Gupta

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 2386 ANSWERED ON 10/12/2024

## ECONOMIST INTELLIGENCE UNIT

## 2386.  SHRI DHAIRYASHEEL SAMBHAJIRAO MANE: SHRI SUDHEER GUPTA:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मं त्री ) be pleased to state:

(a) whether  Economist  Intelligence  Unit  (EIU)  has  recently  ranked  India  as  third  most improving country with respect to business environment following strides made in foreign trade, exchange controls and tax regime etc. and if so, the details thereof;

(b) the details of parameters/indicators in different categories including political environment, market opportunities policy towards free enterprises and cooperation etc., on which EIU Index measures the attractiveness of business environment in the country;

(c) whether the Government has held any consultation/deliberations with private players and various other stakeholders to improve business environment in the country;

(d) the  details  of  other  measures  taken/being  taken  by  the  Government  for  doing  ease  of business and provide conducive environment to attract business in the country; and

(e) the manner in which the said report of EIU will help in making India a developed nation by 2047?

## ANSWER

## वाणिज्य और उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद)

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

(a) The  Economist  Intelligence  Unit  (EIU)  is  the  research  and  analysis  division  of  the Economist Group, which is an independent research and print media. Based on their research exercise, it has recently come up with EIU's Business Environment Ranking. In their ranking, India has been ranked as the third most improving country with respect to business environment following strides made in foreign trade, exchange controls and tax regime etc.

(b) As  per  the  publicly  available  brief  report,  the  EIU's  Business  Environment  Index measures  the  attractiveness  of  the  business  environment  in  82  countries  and  territories, examining 91 indicators spread across 11 different categories. The categories include parameters

such as the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise  and competition, policy  towards foreign investment, foreign trade  and exchange controls, taxes, financing, the labour market, infrastructure and technological readiness. Each of the 91 indicators is scored on a scale from 1 (very bad for business) to 5 (very good  for  business),  and  there  is  a  mix  of  quantitative  and  qualitative  questions.  Scores  are awarded both for the preceding five years and for the next five years.

(c) The  Ministry  of  Commerce  and  Industry  frequently  consults  and  collaborates  with diverse stakeholders, including private sector participants, to develop key policy reforms aimed at improving the business environment in the country.

(d) The Department for Promotion of  Industry and  Internal  Trade  (DPIIT)  plays  a  crucial role in coordinating initiatives aimed at enhancing the Ease of Doing Business (EoDB) in India. These efforts are designed to create a more favorable business environment, attract investments, and stimulate economic growth by reducing bureaucratic obstacles and streamlining regulations. The  DPIIT  oversees  several  key  initiatives,  including  FDI  policy  reforms,  National  Single Window System (NSWS), the Business Reform Action Plan (BRAP), the B-Ready assessment, Jan Vishwas Act, and the Reducing Compliance Burden on Businesses and Citizens program.

(e) Government incorporates insights from various such relevant academic studies to shape policies and programs, including India's Vision 2047. Further, Government of India is currently monitoring  select  global  indices  under  Global  Indices  for  Reforms  and  Growth  (GIRG) initiative.  However,  this  'EIU's  Business  Environment  Index'  report  is  not  part  of  the  GIRG initiative.

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