Business will be a Breeze from Next Fiscal

1. Doing Business will
be a Breeze from
Next Fiscal
PMO pushes ministries to ensure
mechanism for faster clearances by
the end of March

2. Contd..
The Modi regime is pushing ministries to put in place a vast array of
changes in the next three months as it looks to improve ease of doing
business in India, a measure on which the World Bank has ranked the
country at an abysmal 142 out of 189, two down from 140 in the
previous year.
By the end of current fiscal, the regime wants to make it possible for
businesses to be registered in a day , green clearances to be available
online and construction outside airport zones to go ahead without
government nod. Applications for setting up new businesses and
director identification number (DIN) through the eBiz Portal will
automatically also register for permanent account number (PAN),
cutting one permission.

3. Contd..
Also coming up by March 31: trading across
borders will need fewer papers, goods will be
cleared in less than 12 hours and there will be
fast-track courts to deal with contract-related
disputes. With the prime minister keen on
improving India's image as an investment
destination, the Department of Industrial Policy
& Promotion (DIPP) has drawn up a schedule
between now and March 31 to reduce the
regulatory, bureaucratic and compliance
burden on companies. Just a few measures,
included in the bigger `Ease of Doing Business
and Integration with eBiz Portal' plan, have a
later deadline of April 30.

4. Contd..
The Prime Minister's Office has shot off letters to the ministries and
departments concerned, asking them to expedite implementation of
tasks identified as being their responsibility. The communique from
Nripendra Misra, principal secretary to the PM, has emphasised the
importance of the country bettering its rank on the global index, said a
government official aware of the development.
Former Planning Commission member Arun Maira cautioned against
over-centralisation and micromanagement of the initiative.

5. Contd..
“It is a large program with a lot of smaller
sub-programs. If you can energies the smaller
programs, then it can be achieved,“ he said,
adding much of the measures being
suggested should be easy to implement.
Misra's missive was sent after a review
meeting by the PMO in which many
departments were found to be lagging.
The government is keen the measures
undertaken should reflect in an improvement
when the World Bank undertakes its next
review.

6. Contd..
“A number of things have been done and a large number are being
attempted,“ a senior DIPP official told ET. “While we may not break into
the top 50 in a year, we can defi nitely get there in two years...There are
areas like insolvency where we need urgent action.“
The DIPP schedule clearly fixes responsibility for each measure, the
progress made, what's pending and by when the various steps need to
be completed. “The focus is on business-process reengineering,
converging and integrating departments and putting all approvals
online,“ the official said.

7. Contd..
DIPP is also meeting with states to take this
forward.
India does even worse when it comes to
enforcing contracts -at 186, better than only
Angola, Bangladesh and Timor-Leste. It indicates
a poor dispute-resolution system that has
undermined faith in contracts, a crucial
consideration for those looking to invest in India.
To fix this, DIPP has recommended to the law
ministry setting up of specialised fast-track
courts, tribunals, besides ways of encouraging
arbitration to resolve contractual disputes and
putting up a timebound decision-making process.

8. Contd..
The district courts are overburdened as they have to deal with a broad
range of civil, criminal and commercial cases, DIPP pointed out. It
suggested cases involving a sum exceeding ` . 10 lakh should
automatically be sent for arbitration before going to court.
DIPP wants all steps to be completed by April 30 next year, having set
itself the task of taking India into the top 50 on World Bank-compiled
ease of doing business index over the next few years. A government
official pointed out that while there was a case for an upgrade, it may
be not be easy to reach this bracket as the country's rating on judicial
redressal is very low.

9. Contd..
Experts say that India could easily cross the 100-70
mark by improving a number of processes.
“While a lot of effort is being made to improve a
number of processes like registration of a company ,
there is definitely scope for tremendous
improvement in many more areas,“ said Sunil Jain,
partner, J Sagar Associates. “One key area that needs
attention is judiciary .“
Business chambers have already flagged ease of
doing business as an urgent issue. The World Bank is
also in the process of amending the way rating is
conducted following representations from a number
of countries, including India.

10. Parveen Kumar Chadha… THINK TANK
(Founder and C.E.O of Saxbee Consultants & Other-Mother )
Email :-saxbeeconsultants@gmail.com
Mobile No. +91-9818308353
Address:-First Floor G-20(A), Kirti Nagar, New Delhi India
Postal Code-110015