FB   
 
Powered bysps
        Society for Policy Studies
 
 

 
Unease of doing business
Updated:Aug 29, 2017
 
Print
Share
  
increase Font size decrease Font size
 
Last year, after the World Bank’s Ease of Doing Business Ranking placed India at a lowly 130 out of 150 countries, Prime Minister Narendra Modi asked bureaucrats to explain the reasons for the country’s poor performance and directed them to work on improving the ranking. About 10 months later, a survey by the Niti Aayog and the Mumbai-based think tank, IDFC Institute, reveals that the efforts of the Centre and state governments to ease the system of permits and clearances notwithstanding, most entrepreneurs still feel hobbled by the country’s regulatory environment. The survey of more than 3,000 manufacturing enterprises across the country shows that most firms do not use the single-window systems for business and regulatory clearances.
 
 
Despite the Centre’s repeated claims that a firm can be incorporated in less than a week, the survey shows that even in the best performing state, Tamil Nadu, the process takes more than 60 days — on average it takes nearly four months to set up a business in India. The gap between claims and ground realities suggests that the government’s outreach system requires sprucing up. But the gap is also a sign of a persistent problem with governance in India: The difficulty of cutting the red tape of the lower bureaucracy. This explains why on an average, entrepreneurs need more than 100 days to get a construction permit. The World Bank’s report, last year, had also highlighted that delays in issuing construction permits affected the ease of doing business in India. The Bank’s report came in for criticism — some of it justified — by Commerce Minister Nirmala Sitharaman and Minister of Law and Justice and Electronics and IT, Ravi Shankar Prasad, who released the Niti Aayog-IDFC report. But the government cannot ignore the similarities in the two reports when the economy is slowing down and generating new jobs looks even more of a challenge.
 
 
The textiles, food processing and non-metallic minerals sectors account for almost two-thirds of the firms surveyed by the Niti Aayog and IDFC. What should also worry the government is the report’s finding that entrepreneurs in these employment-intensive sectors are more likely to face problems and securing construction and other permits, compared to the capital-intensive ones. The survey should serve as a wake-up call to government and a reminder that over two decades after economic reforms the Indian state is still flailing when it comes to easing the path for entrepreneurs. That’s a pity because the low interest rate cycle now should have revived animal spirits.
 
 
 
 
 
Print
Share
  
increase Font size decrease Font size
 

Disclaimer: South Asia Monitor does not accept responsibility for the views or ideology expressed in any article, signed or unsigned, which appears on its site. What it does accept is responsibility for giving it a chance to appear and enter the public discourse.
Comments (Total Comments 0) Post Comments Post Comment
Review
 
 
 
 
spotlight image Since Prime Minister Sheikh Hasina assumed office again in Bangladesh in 2009, bilateral relations between New Delhi and Dhaka have been on a steady upward trajectory.
 
read-more
Pakistan Prime Minister Shahid Khaqan Abbasi on Wednesday received a telephone call from US Vice President Mike Pence who offered thanks for the rescue of an American hostage, her Canadian husband and three children, the Prime Minister's office said.
 
read-more
Ruskin Bond’s first novel ‘Room on the Roof’ describes in vivid detail how life in the hills around Dehradun used to be. Bond, who is based in Landour, Mussoorie, since 1963, captured the imagination of countless readers as he painted a picture of an era gone by.
 
read-more
India’s foreign policy under Prime Minister Narendra Modi has attained a level of maturity which allows it to assert itself in an effective manner. This is aimed at protecting the country’s national interests in a sustained way.
 
read-more
Braid-chopping incidents have added to the already piled up anxieties of Kashmiris. Once again they are out on the streets, to give vent to their anger. A few persons, believed to be braid-choppers were caught hold by irate mobs at various places. They were beaten to pulp.
 
read-more
The report delivered by Xi Jinping at the opening of the 19th National Congress of the Communist Party of China (CPC) declared that socialism with Chinese characteristics has entered a new era and the CPC has drawn up a two-stage development plan to develop China into a "great modern socialist country" by 2050.
 
read-more
The capture of Raqqa, the Islamic State’s de facto capital in Syria, by U.S.-backed Kurdish and Arab troops this week is a crushing blow to the group.
 
read-more
In West Asia, the end of one war paves the way for the next. Raqqa, the Syrian capital of the self-styled Islamic State (IS), has fallen to a coalition of rebels, the Syrian Democratic Forces that is backed by the United States.
 
read-more
On “Defining Our Relationship with India for the Next Century”
 
read-more
Column-image

Title: The People Next Door -The Curious History of India-Pakistan Relations; Author: T.C.A. Raghavan; Publisher: HarperCollins ; Pages: 361; Price: Rs 699

 
Column-image

Could the North Korean nuclear issue which is giving the world an anxious time due to presence of hotheads on each side, the invasion of Iraq and its toxic fallout, and above all, the arms race in the teeming but impoverished South Asian subcon...

 
Column-image

Title: A Bonsai Tree; Author: Narendra Luther; Publisher: Niyogi Books; Pages: 227 Many books have been written on India's partition but here is a firsthand account of the horror by a migrant from what is now Pakistan, who ...

 
Column-image

As talk of war and violence -- all that Mahatma Gandhi stood against -- gains prominence across the world, a Gandhian scholar has urged that the teachings of the apostle of non-violence be taken to the classroom.

 
Column-image

Interview with Hudson Institute’s Aparna Pande, whose book From Chanakya to Modi: Evolution of India’s Foreign Policy, was released on June 17.

 
Subscribe to our newsletter
Archive