A Study on Improving India’s Ease of Doing Business Index presented on February 2017

1. Increasing trade amongst BRICS
Nations Using Ease of Doing Business
as Tool
Ketan Vira , Associate Professor- GNVS Institute of Management,
Mumbai .
Poonam Merwani, Assistant Professor- Vidyalankar School of
Information Technology, Mumbai

2. Doing Business
Doing Business provides an aggregate ranking
on the ease of doing business based on indicator
sets that measure and benchmark regulations
applying to small and medium-size through their
life cycle.

3. Doing Business
Doing Business presents results for 2
aggregate measures: the distance to frontier
score and the ease of doing business ranking.
The ranking of economies is determined by
sorting the aggregate distance to frontier scores,
rounded to two decimals. An economy’s
distance to frontier score is indicated on a scale
from 0 to 100, where 0 represents the worst
performance and 100 the frontier.

4. Introduction
General Agreement on Tariffs and Trade
World Trade
Organization
Between 1950 and 2007, for example, real world
trade grew by 6.2% a year while real income per
capita grew by 2% a year. Greater international trade
is strongly correlated with economic growth.

5. Introduction: BRICS
BRICS brings together five major emerging economies, comprising
43% of the world population, having 30% of the world GDP and 17%
share in the world trade.
The acronym BRIC was first used in 2001 by Goldman Sachs in their
Global Economics Paper, "The World Needs Better Economic BRICs"
on the basis of econometric analyses projecting that the economies of
Brazil, Russia, India and China would individually and collectively
occupy far greater economic space and would be amongst the world’s
largest economies in the next 50 years or so.

6. Literature Review
World Bank Flagship Report on India (2017) examines economy
profile of India in terms of indicators which are useful for
comparison with the selected economies (comparator economies) for
each indicator.
World Bank Flagship Report (2017) on Brazil, Russia, China and
South Africa has also been referred to understand the areas under the
study.
Baumann/Ng (2012), provides an appraisal of trade flows between
Brazil and the other BRICS from a different perspective than has
been adopted by other studies so far. Emphasis was given to the roles
of the indicators of comparative advantage, as well as to the role of
different tariff barriers imposed on Brazilian products and on Brazil`s
potential competitors in the neighborhood of each BRIC.

7. Objectives of the Study
• To compare and analyze the position of BRICS
economies on the indicator of trading across the borders
• To study the areas where Intra- BRICS trade can
improve
• To suggest the measures in the selected parameter to
improve India’s ranking on selected indicator

8. Analysis
To compare and analyze the position of BRICS economies
on the indicator of trading across the borders
Country DB 2016
Overall
Rank
DB 2017
Overall
Rank
DB 2016
Trading
Across
Borders
Rank
DB 2017
Trading
Across
Borders
Rank
DTF 2016
Score on
Trading
Across
Borders
Rank
DTF
2017
Score on
Trading
Across
Borders
Rank
Observation
on Trading
Across
Borders
Rank and
DTF
Brazil 121 123 150 149 54.20 55.57 Rank: +1
DTF:+1.37
Russian
Federation
36 40 138 140 57.96 57.9 Rank: -2
DTF: 0
India 131 130 144 143 56.45 57.61 Rank: +1
DTF: + 1.16
China 80 78 94 96 69.13 69.13 Rank:+2
DTF: 0
South
Africa
72 74 137 139 58.01 58.01 Rank: -2
DTF: 0
Source: Prepared

9. Analysis
To study the areas where Intra-BRICS trade can improve
Source: Prepared
Country Exports Imports
Country % of
total
trade
Rank Country % of
total
trade
Rank
Brazil China 18.6% 1 China 17.9% 1
Russia China 8.2% 2 China 19.3% 1
India China 3.6% 5 China 15.8% 1
China None - - China
(re-
import)
8.6% 4
South
Africa
China
India
8.3%
-
1
-
China
India
18.3%
5%
1
5

10. Analysis
To suggest the measures in the selected parameter to improve
India’s ranking on selected indicator
Factors Measures
Time Can be reduced by reducing Documentary and
Border Compliances
Cost Can be reduced by reducing Documentary and
Border Compliances
Documentary
Compliances
Can be reduced by using electronic single
window, which India to major extent as
introduced through reforms
Border
Compliance
Effective Inspection System
Domestic
Transport
Improving Infrastructure
Source: Prepared

11. Conclusion
Looking at the present scenario of reverse globalization and
increasing protectionism increasing trade amongst BRICS
nations can help to improve their role in the global
economy. Further this will help the BRICS nation to
increase their distance to frontier. However, study tries to
conclude that Brazil, Russia, India, China and South Africa
can use the best practices as followed by the countries that
lead on the indicator of trading across the borders and can
use it to their advantage. Further, BRICS success depends
on many other criteria as all the BRICS nations are not in
proximity. BRICS nations can evaluate its indicator on each
of the parameter as mentioned in Ease of Doing Business
and can use it as the tool to enhance the trade amongst the
member nations.

12. References
http://www.doingbusiness.org/~/media/WBG/DoingBusiness/Documents/Annual-
Reports/English/DB17-Full-Report.pdf
http://www.doingbusiness.org/data/exploreeconomies/india
http://www.doingbusiness.org/data/exploreeconomies/brazil
http://www.doingbusiness.org/data/exploreeconomies/russia
http://www.doingbusiness.org/data/exploreeconomies/china
http://www.doingbusiness.org/data/exploreeconomies/southafrica
http://www.doingbusiness.org/data/distance-to-frontier
https://www.tralac.org/Reports/Intra-BRICS/2016.pdf
R. Baumann, F.Ng (2012). Trade among BRICS: Still a Bumping Road from a
Brazilian perspective. p.p 1-26

13. Thank You