Another step by Narendra Modi government to make India a business friendly destination

The Narendra Modi government will soon give a good news for all the wannabe entrepreneurs as the government plans to make India a better place to do business. To do so, the Modi government has planned a slew of steps which includes cutting down the time for registering a business to just one day. So far, it takes 27 days to register the business.

As per a TOI report, The Department of Industrial Policy and Promotion (DIPP) will be the main agency who will push these changes in the system with the help of all the ministers and state bodies. DIPP has set a time frame of 3-6 months for implementing all changes which will bring this change in the country.

How does the govt plan to bring this reform?

• To bring these changes, the government plans to do the following:
• Single registration for all labour laws
• Reduction in the number of permits required
• Easing up property registration
• Quick electricity connection and property registration
• One policy for all the states throughout India
• No Inspection for low risk businesses
• Overhaul of taxation system and online payment acceptance of the same
• Faster implementation of Direct Tax Code
• Building laws to be streamlined throughout states
• Removing requirement of pollution control certificates for power connections
• Enable single-window clearance system
• A combined application form to provide various approvals.

India - not a friendly investment destination

• India is said to be a difficult place to do business due to its stringent rather non-industry friendly rules and red tapeism.
• For doing business, even neighbouring Pakistan and Bangladesh are considered better countries as compared to India.
• According to The World Bank's "Ease of doing business" index, India ranked 134 out of 189 countries in 2014.
• As per the report, neighbouring Pakistan stood at 110 and Bangladesh at 130, while New Delhi's close competitor China is at 96th position.
• Prime Minister Narendra Modi while launching the 'Make in India' campaign had said that he will try to improve India's position for doing business.
• He also said that soon India will become friendlier investment destination and his government will take steps to bring India's ranking among the top 50.
• This move from the government will encourage the global business community to set up manufacturing facilities in India. These moves from the Narendra Modi government will bring in a number of changes.

What is Make in India campaign?

• It is an initiative by Narendra Modi government which seeks to make India a global manufacturing hub.
• PM Narendra Modi wants to get manufacturing growth to sustainable 10 per cent over long term.
• Centre will work with States to de-bureaucratise and deregulate things which act as a detterant.
• Help simplify business procedures and usher in mindset changes.
• The government feels that in order to create jobs and boost economic growth there is an urgent need to boost manufacturing sector on a sustainable basis for long term.