THIS ECONOMIC JARGON HAS BEEN MAKING HEADLINES VERY OFTEN. UNDERSTAND WHAT IT ACTUALLY MEANS IN A SIMPLIFIED MANNER . HERE.
Today's article is economic centric. We shall understand how the ease of doing business has an impact on the economy.India has tried to be more friendly and its rank has improved exponentially from 142 in 2016 to 63 in the economy mostly through reforms of Make In India initiative.
SIMPLE EXPLANATION IN BITS & PIECES:
It includes several parameters like:
Labor laws
Land permit
State of infrastructure like access to electricity & transportation
Legal process of starting business
Availability of credit/loan
ADVANTAGES TO DOMESTIC ECONOMY:
More factories= more employment
Improved infrastructure to woo foreign companies
More inflow of Foreign Direct Investment (FDI)
AS RISE IN RANK BEGINS, FDI INCREASES
Increase in exports
Slow rise in living standards as observed in China
DISADVANTAGES TO DOMESTIC ECONOMY:
Reduction in minimum wage as labor laws are eased
Negative impact on environment due to influx of industries
Cut throat competition for domestic companies
Increased dependence of economy on exports
Increase in foreign influence in national policy (example: US sanctions forced India to stop buying oil from Iran in 2019).
TODAY'S ARTICLE WAS COMPLETELY BASED ON SELF ANALYSIS (AS ALWAYS) SO I MIGHT HAVE MISSED SOME POINTS. IF YOU COME ACROSS ANY PLEASE MENTION IN THE COMMENTS SECTION BELOW.
CONCLUSION:
Ease in business can act as an impetus for steady economic growth.
All major economies have easier conditions for business which illustrates its importance.
ALL THE MAJOR ECONOMIES ARE DARK BLUE (HIGHER RANK)
The present Indian govt. has done an admiral job but its good work can be hindered by corruption & red tapism.
Instead of simply jumping ranks, actual work can be done by addressing slow bureaucracy of the government.
AS ALWAYS THANKS FOR READING. IF YOU WANT ANY SPECIAL ANALYSIS CONTACT ME ON WHATSAPP OR INSTA.
ADIOS!