India now ranks 130th out of 190 countries in the ease of doing business ranking, moving up by one place from last year, according to World Bank.
The Washington-based multilateral agency has also revised India's last year ranking from 130 to 131.
A higher ranking means the regulatory environment is more conducive to the starting and operation of a local firm.
The government has liberalised the foreign direct investment (FDI) regime by raising caps on foreign holding in domestic companies in a slew of sensitive sectors like defence and insurance.
India's FDI inflows in 2015-16 had increased to a record $55.46 billion as against as against $36.04 billion in 2013-14.
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