SSC Selection Post 2025 PYQ — Question 13

Correct Answer

Easy to start a business

Explanation

A high Ease of Doing Business (EODB) score indicates that a country or region has simpler, more efficient regulations and stronger protections for property rights, making it easy to start and operate a business. The score evaluates several critical indicators throughout the life cycle of a business, such as the time and cost required to obtain commercial permits, register property, get electricity, secure credit, pay taxes, and enforce contracts.

A higher score or ranking implies that the regulatory environment is more conducive and favorable to the setup and local operation of a firm, minimizing bureaucratic hurdles and red tape for entrepreneurs.

Key Points

The Ease of Doing Business index was historically pioneered and published annually by the World Bank Group to benchmark global business environments. The index aggregates data across 10 to 12 distinct sub-indicators, including starting a business, resolving insolvency, and trading across borders. Many countries, including India, have implemented sweeping economic and administrative reforms specifically to boost their EODB scores and attract foreign direct investment.

Important Questions and Answers

Question: Which international financial institution historically formulated and published the global Ease of Doing Business rankings?

Answer: The World Bank.

Question: What type of administrative delay is primarily reduced when a country improves its 'Starting a Business' indicator within the EODB framework?

Answer: Red tape and bureaucratic procedures.