India is worse, though better than half of the 213 countries, on government effectiveness. This measures red tape, the bureaucracy and government stability.

Notwithstanding the excellent — by international standards — regulation in stock markets, telecom and so on, India fares at the 44th percentile on regulatory quality. The indicator measures regulation of exports, imports, ownership of business and equities, price controls, administrative burden and unfair trade.

What takes the cake, however, is the political stability indicator. India is placed in the 22nd percentile. Political stability measures the possibility of a military coup, major insurgency, civil war, armed conflict, social unrest, country terrorist threat for firms, external conflict and government stability. This suggests that nearly 78 per cent of the 213 countries listed, including in Asia and Africa are more politically stable than India.

Of course, this ranking puts the report’s methodology in doubt. The World Bank should perhaps have a second look at the indicators and ranking before coming to such conclusions.