Problems with global indices like Ease of Doing Business and the Global Hunger Index, where India didn't even place in the top 100 countries, boil down to methodology.
Washington’s note can act as a starting point for New Delhi to plug lacunae in investment policy
The rankings, jointly prepared by the World Bank and DIPP, serve as a check-list of sorts for evaluating states on a 340-point Business Reform Action Plan, between the period of July, 2016 and July, 2018.
Last year, India’s ranking improved by just one notch to 130, indicating a gap between policies and their implementation
CII Past President Sunil Kant Munjal said: "This result was surprising and disappointing because one can see the kind of work happening in the government".
They observed however that the position may improve significantly with the proposed roll out of the Goods and Services Tax (GST) from next April as well as the Insolvency and Bankruptcy Code, likely to be implemented by coming December.
The sub-ranking for protection of minority investors is topped jointly by New Zealand and Singapore.
India continues to rank low at 130th position in terms of ease of doing business, with the country seeing little or no improvement in dealing with construction permits, getting credit and other parameters.
Hoping India will improve its ranking on World Bank's Ease of Doing Business Index, eminent economist Kaushik Basu has said the government also needs to be more active in promoting cohesiveness and diversity in the society, as economic reforms with political and social inclusiveness can help the country regain 9.5 per cent growth rate.
"It has been our effort in India to gradually transform and change most of our taxation laws, put to rest various disputes and issues which have been pending and make sure that the scope of discretions is eliminated and there is a greater degree of stability and predictability as far as taxation laws are concerned," Jaitley said.
It gives a good signal about the way things are moving in India," Basu said in an interview as World Bank released its annual report 'Doing Business 2016' which is topped by Singapore, followed by New Zealand, Denmark, South Korea, Hong Kong, Britain and the US.
While India ranked 142, among 182 nations ranked in the World Bank's Doing Business study, Department of Industrial Policy and Promotion (DIPP) Secretary Amitabh Kant, says it can rank in top 50 nations in the next three years.
According to HSBC, India's current account deficit is expected to narrow from 1.1 percent of GDP in 2014 to 0.6 percent in 2015 while retail inflation is likely to remain below 6 percent throughout this year.
The latest ranking, however, does not take into account the slew of measures taken by Modi Government to make India a business friendly destination.
Jean Michel Lobet, private sector development specialist, World Bank explains to CNBC-TV18 that reduced formalities and implementation of long-term reforms was the key to boost growth in India and improve its ranking in the World Bank's Doing Business Index.