Utility of EODB ranking and entrepreneurial environment in India

♤ EODB Index rankings facilitate the cause of entrepreneurship by creating awareness about the opportunities available in India.

♤ The central government’s push has led to competitive federalism among States,

smoothening out their regulatory procedures.

♤ As good rankings create an atmosphere for favourable investments, it may also help in spurring economic activities and generation of employment.

In this regard the collaboration between World Bank and the Central government to rank states on EODB is a step in the right direction to promote entrepreneurial environment in India. However, overemphasis on these ranking should be avoided due to the following reasons:

♤ It covers only two cities of New Delhi and Mumbai and do not take in to account the reforms undertaken by States.

♤ Also, performance in just one area may bring down the overall ranking substantially.

♤ As other countries also increase their efforts, jumping up in the ranking gets tougher.

Therefore, for domestic assessment of progress, internal State-based rankings will serve the cause of entrepreneurship better.