Conducive the regulatory environment of the economy, higher will be the ease of doing Business. ‘Make in India’ project is the most hyped and discussed initiative of NDA government and to make this a success, Ease of Doing Business ranking has most been focused in the recent years. With the second anniversary of NDA, we need to know how the efforts made by it in the direction of easing the business, how such efforts can prove to be fruitful.
To create a congenial environment for business in India, it has always been important to initiate an effortless process to start a business, and start-up India movement with a fund worth Rs. 10,000 crores which has provided for many initiatives for start-ups like tax-exemption for initial 3 years, exemption in patent fees, etc.
Now, Registration for PAN, TAN, and ESIC and incorporation of company can be done through a single form on eBiz portal. For instance, for PAN registration can be done on https://www.ebiz.gov.in/panregistration-central and time taken for obtaining PAN and TAN on this portal brought down to T+1 days.
Form INC 29 which was launched by Ministry of Corporate Affairs in 2015 to provide 3 preregistration services viz. ‘Name Availability’, ‘Director Identification Number’ and ‘incorporation of company’ with one form and one payment, too has made the environment Business-friendly to a great extent.
Construction regulations are needed to protect the public from faulty building practices. To do so, regulations need to be made clear and comprehensive as if they are not clear, permits for construction might lead to unnecessary delay because of disputes and uncertainty. In this regard, NoCs from Maharashtra Industrial Development Corporation, Director of Industries, Collector and Maharashtra Housing and Area Development Authority have been eliminated, introduction of digital sanction of application, online colour-coded maps for Delhi and Mumbai airports have been introduced to get no-objection certificate from Airports Authority of India and so on.
Electricity being an input for any kind of business needs to be easily availed. Maharashtra and Delhi have implemented the lump-sum charges for electric connection and have removed the need of an estimate and an inspection for the same. Only documents now needed to apply for electricity connection are identity proof and proof of ownership of the place.
Central government has seriously tried to follow its ideology of “Ek Bharat Shresth Bharat” and in spite of all the differences between the Central and State government parties, both have conjointly worked with each other to make the dream of ‘Make in India’ a reality like in Delhi, Delhi VAT Sewa App has been developed, Commercial Divisions and Appellate Divisions in Delhi High Court have been established and so on; in Mumbai, VAT and Profession tax registration has been integrated into a single process, Requirement of inspection has been removed to make registration of Shops and Establishments real-time, etc. The reason why Delhi and Mumbai were chosen first may be, because these two cities have the most potential for business.
How easy it is to trade across borders also determines how friendly the trading environment for businessmen is, that is, they must be able to import the raw materials and capital goods and must be able to export the finished goods with simplified trading procedures as many have been introduced by the government in the past two years.
When a business is set up and continued, it always involves certain contracts, and the essence of contracts can be realised only when they are efficiently enforceable. India’s performance in enforcing contracts has been quite poor and there has been an instant need to improve this, so that the prospective investor is not fearful of being trapped in long litigation processes. To ensure this, The Arbitration and Conciliation Act has been amended to reduce the time taken in arbitration proceedings and grounds on which an award may be challenged. The setting up of Special Commercial Courts in Delhi and Bombay High Courts to speed up cases related to enforcement of contracts are some of the measures taken so far. Also, the announcement of having a Bankruptcy Code seeks to resolve the never-ending litigations related to insolvency.
Modi’s vision of Digital India and initiatives towards this will undoubtedly make the processes like registration of companies and property quite easier. In Delhi, all sub-registrar offices have been digitized and sub-registrar’s records have been integrated with the Land Records Department. In Maharashtra, all property tax records have been digitized.
Plans like Start-up India and Digital India are aimed at Ease the doing of business in India which in turn seeks to target ‘Make in India’- a monosyllabic solution for all economic problems of India.