What is B-Ready Index?

August 5, 2024

India is preparing for the World Bank’s new Business-Ready (B-Ready) index, which will evaluate the global business environment and investment climate. This new index replaces the Doing Business index and focuses on key factors that affect how businesses operate.

Transition from Doing Business Index

The B-Ready index aims to give a more complete picture than the Doing Business index. It will compare countries based on ten important topics that cover the entire life cycle of businesses. The B-Ready report will focus on crucial areas such as:

Business entry: How easy it is to start a business
Labour: Employment regulations and workforce conditions
Financial services: Access to banking and financial products
International trade: How efficiently goods are imported and exported
Taxation: Tax policies and their impact on businesses

These topics will provide insights into the rules and conditions that businesses operate under.

International Trade Assessment

One of the key areas is international trade, which looks at how efficiently goods are imported and exported. This includes customs procedures and the role of digital trade, which makes it easier to access global markets. Digital trade helps increase transactions across borders, making international markets more accessible. Simplifying processes and lowering compliance costs are essential for maximizing the benefits of international trade, according to officials.

Target for E-commerce Exports

India aims to reach $200-300 billion in e-commerce exports by 2030. Currently, e-commerce exports make up only a small part (0.9-1.1%) of the country’s total merchandise exports, so there is a need to become more efficient and increase capacity.

About B-Ready index

The B-Ready index also evaluates how prepared businesses are for economic shocks and crises. Created by the Global Business Network, it looks at resilience and adaptability, considering factors like supply chain stability, workforce flexibility, and technology use. Countries with higher B-Ready scores often recover faster from crises. The index encourages proactive risk management strategies and has been useful during the COVID-19 pandemic in helping businesses identify weaknesses. Small and medium-sized enterprises (SMEs) often score lower due to limited resources. The index highlights the importance of sustainable practices for long-term resilience.

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