Well, there is some confusion. BS reports the ranking has jumped by 12 places from 142 in 2015 to 13o in 2016. Whereas the DB website says the rise is more modest from 134 to 130. An improvement nevertheless and welcome as well.
The rise comes from two sub-indicators- starting a business (from 164 to 155) and getting a electricty connection (from 99 to 70). The first one is really important given how pathetic the whole thing is in India. Though in electricity, I guess what matters also is whether one gets electricity as well! Getting an easier connection alone will not help.
What is weird as that getting credit ranking has slipped from 36 to 42 despite all this noise about financial inclusion and push to ease credit delivery. Perhaps it is got more to do with the idea that overall credit conditions are tight and growth lowest in many years.
Actually, one does not know what these rankings mean other than getting some euphoria and discussion in financial media. One may not do anything and still rise in rankings if other countries have done worse and so on. Then there are also these perennial problem of dejure rankings vs. defacto ones. Frankly, it is difficult to imagine that India can grow this fast with such poor rankings. Equally difficult is to imagine that growth will jump many times if these rankings improve.
But yes it surely improves the image of the country. For all you know, improvement in rankings will actually do more justice to India’s growth rates..