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India Eyes Opportunity As World Bank Audit Reveals Chinese fraud In Doing Business ranking

However, Kaushik Basu, former Chief Economist at World Bank, who supervised the release of the reports during 2012-16 said he was never pressurized by any Indian governments.

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The World Bank controversy regarding favoring China is taking the globe by storm. However, India is eyeing the opportunity from the ongoing scandal that revealed the massive pressure from China to improve its ranking. India is trying to leverage the situation that can help shift manufacturing supply chains to India.

The World Bank, on Thursday, said that it is ceasing distribution of its much pursued Doing Business ranking following an external audit or review uncovered unnecessary obstruction from senior World Bank staff in changing rankings of explicit nations, it said on Thursday.

Meanwhile, Japan, India, and Australia jointly established the Supply Chain Resilience Initiative (SCRI) in April, in order to take on Chinese supply chain dominance in the Indo-Pacific region.

Former World Bank Chief Economist Paul Romer resigned from his role in January 2018, stating that methodological modifications in generating the report resulted in a drop in socialist Chile's ranking. Romer intended to recalculate the ranks by reviewing the previous four years' reports.

The World Bank enlisted the help of American law firm WilmerHale, which combed through 80,000 papers and conducted lengthy interviews to prepare its Doing Business rankings report for 2018 and 2020. During a crucial capital-raising year in 2017, China could use its clout to pressure World Bank top management to reverse their ranking's decline from 78 to 85.

President Jim Yong Kim and Chief Executive Officer Kristalina Georgieva ordered the Doing Business team to re-evaluate China's statistics in order to preserve the 78th position.

Back in India, the opposition took a potshot at Prime Minister Narendra Modi-led Centre government on its focus on improving the Doing Business ranking.

Meanwhile, Jairam Ramesh, Congress leader also tweeted, "World Bank’s Ease of Doing Business Index was among the few global indices where India’s rank post-2014 was proclaimed as rising. Now the exercise has been found bogus & discontinued. If they start an Ease of Fudging Data Index, Mr. Modi’s so-called ‘New India’ will top the charts!"

However, Kaushik Basu, former Chief Economist at World Bank, who supervised the release of the reports during 2012-16 said he was never pressurized by any Indian governments. 

Basu took to Twitter and wrote, "The news of manipulation of World Bank’s Doing Business Ranking is shocking. DB was under my charge from 2012 to 2016. There was pressure from govt. We NEVER gave in. Sad that this changed. I may add, to India’s credit, I never had pressure from India’s govt—current or previous."

Talking about Indian ranking, it has gone up to 63 in 2019, from 142 in 2014, as the BJP  government took the charge at centre. Also, India is aiming to be in the top 50 countries by 2021.

Tags assigned to this article:
Ease of Doing Business ranking world bank china India.