The improved ranking will boost the sentiment of Prime Minister Narendra Modi's government ahead of the general election, at a time it's facing flak for rising fuel prices and falling rupee.
PM Modi tweeted that he was "delighted".
The report measures the performance in ease of doing business in 190 countries. The latest reforms were in the areas of Starting a Business, Dealing with Construction Permits, Getting Electricity, Getting Credit, Paying Taxes, and Trading Across Borders. The U.S. ranks 8th, down from 6th a year ago. New Zealand, Singapore and Denmark were on top of the list.
The United States is placed eight and China has been ranked 46th. "India, with six reforms, is among the top-ten improvers for the second consecutive year", the report said. "The structural reforms which have not yet captured fully will be reflected", he said.
During the past year, starting a business was made easier by enhancing the online one-stop registration system, replacing several forms for incorporation with a single application, and establishing information exchange between the registry and the tax authority. "India also made paying taxes less costly by reducing the corporate income tax rate and the employees' provident funds scheme rate paid by the employer", the World Bank said.
With streamlining of processes, India made it faster and less expensive to obtain a construction permit.More news: Gunman who killed 11 in USA synagogue likely acted alone
While talking to the media, Fareena Mazhar, Executive Director General BOI, explained that in addition to introduction of reforms, other positive data corrections also contributed to the unprecedented improvement in ranking of Pakistan.
In 2017, India jumped 30 places to be ranked at 100th. The country, it added, has improved its ranking by 53 positions in the last two years and 65 positions in four years since 2014.
"The obvious area and target for improvement are registering property, starting a business, insolvency, and taxation and the fifth one is enforcement of the contract", he said.
The sharp jump in India's ranking is largely driven by feedback from stakeholders who say it is now significantly simpler to get construction permits and ship goods across the country's borders as well as reforms in other regulatory and process approvals. In the area of construction permits, the country's ranking has improved by a whopping 129 points, 66 in "trading across borders", the ministry said. Mr Jaitley said, reaching to 50 from the 142nd position is an unprecedented growth in World Bank business Ratings.
"Enhanced risk-based management now allows exporters to seal their containers electronically at their own facilities; as little as five percent of shipments must undergo physical inspections", it said, adding that India also invested in port equipment, strengthened management and improved electronic document flow. For example, getting an electricity connection now takes 185 days as compared to 215, previously.