Page 75 - Forbes India (December 2015)

has been introduced by the ministry the key reforms undertaken have
of corporate affairs to quicken made it easier for businesses to
registration of companies. Even electronically register and pay taxes,
the number of documents required Cutting Red tape obtain electricity connections more
for export and import is being easily and have a simpler regime for
lowered. Mumbai has introduced Some of the reforms that have helped inspections by labour and pollution
commercial courts to hear business improve India’s standing in the Ease inspectors,” says Chandrajit Banerjee,
of Doing Business rankings
disputes and the eBiz portal by the director general, Confederation of
Department of Industrial Policy Indian Industry (CII). But states still
& Promotion (DIPP) is being  Companies Act has been amended have to rationalise the licences and
upgraded to deliver more services. to remove provisions for minimum clearances required at the state level
paid-up capital
Regular interactions between DIPP to start, operate and exit a business.
Secretary Amitabh Kant and industry  Process to obtain electricity “Corruption in the government
stakeholders have hastened the pace connections has been streamlined in has come down significantly at the
of reforms. “Interactions between Mumbai and Delhi central level in the last one year,
stakeholders have definitely improved  Mandating e-payment for EPFO while on other crucial parameters
under this government,” a top and ESIC contributions like regulatory clearances, land
executive who liaisons for American acquisition and taxation policies,
companies in India told Forbes India.  Construction permit processes in Delhi a lot more needs to be done for
The government’s idea is to and Mumbai have been streamlined and seeing real change at the ground
promote an enabling environment. applications can now be made online level,” says DS Rawat, secretary
Even the finance ministry is putting  The number of documents required general, Assocham, in a report
its weight behind the reforms with for export and import has been reduced prepared by the business chamber
the Economic Affairs Secretary to gauge ease of doing business.
Shaktikanta Das pushing the draft The road ahead still remains
bill on bankruptcy to be introduced challenging. If India must enter the
In a recent meeting between Kant 2015
in Parliament at the earliest. elite 50, then it has to act like one.
Experts suggest further digitisation
secretary was informed that while the RANK 142 of processes, updates to the
and American corporates, the DIPP
Securitisation and Reconstruction of
Centre is taking steps to improve ease Financial Assets and Enforcement of
just not keeping up. “Implementation 2016 Security Interest (Sarfaesi) Act, and
of doing business, some states were
passing of the Arbitration Bill along
of the policies is still a question mark. RANK 130 with Goods and Services Tax (GST)
There are still multiple agencies Bill will aid India in climbing up the
that exercise restraint and prevent Ease Of Doing Business index further.
execution at the operational level. A daunting task, but not impossible
The role of state governments Change +12 as proved by countries such as
and minor departments must be Russia, Rwanda and Croatia that
monitored. These agencies and their have leaped ahead on the index.
contradictory circulars must be “What is more important for India,
disempowered and made redundant,” Days needed to start however, is that since the Doing
says Ajay Singha, executive director, a business in India Business report started considering
American Chamber of Commerce in the current 10 indicators, this is the
India. States such as West Bengal, first year that India has been able to
Chhattisgarh, Andhra Pradesh 2013 32 improve its rank,” says Ruhl. “The
and Telangana, for instance, have hardest challenge for an economy
been more proactive than others. 2014 34 the size of India is to reverse the
“State governments have acted trend—now that India has reversed
positively in undertaking reforms 2015 29 that trend, it is poised for take-off.”
to improve their ease of doing In the next two years, India, backed
business. At the state level, some of Source: World Bank data by its reforms, has to take flight.

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