Even as the Narendra Modi government is making efforts to significantly improve India’s ranking from a dismal 142nd among the 189 countries surveyed for the World Bank’s ‘Ease of Doing Business’ report released last year, a two-member mission of the World Bank Group is in India to collect data and information for the next edition of the report.
As part of the visit of the members of the mission — Nadine Abi-Chakra and Baria Nabil Daye — a meeting was held on Monday by the government. Besides the World Bank Group officials, the meeting was attended by officials of the department of economic affairs, department of industrial policy and promotion (DIPP), ministry of corporate affairs and the Central Board of Direct Taxes. The mission was briefed about the reforms carried out by the government to improve ease of doing business in the country. These include removal of the requirements of minimum paid-up capital for companies, a common seal for companies and filing declaration of commencement for companies.
Besides, the government has brought out a single-step incorporation of companies through the INC-29 Form and simplified the process to approve related party transaction.
Also, resolutions taken by a company’s board has been taken off the disclosure requirements, facilitating better functioning of companies, the government said, adding that an order to facilitate the revival and rehabilitation of micro, small and medium enterprises (MSMEs) have been issued. In addition, customs clearance facilitation committees (CCFCs) have been constituted at ports to facilitate expeditious clearance of goods, the government said, adding that only three documents are required for exports and imports.
To enhance the ease of doing business in various states in India, the DIPP said it has initiated a study to assess states on reform parameters that are germane to ease of doing business. In World Bank’s Ease of Doing Business 2015 study released last year, with the exception of two parameters (getting credit and protecting minority investors), India does not feature in the top 100 in the remaining parameters, the DIPP said. In the ‘dealing with construction permits’ and ‘enforcing contracts’ parameters, India ranks in the bottom 10 economies as per the ranking, it added.”India’s overall ranking and the individual rankings in various parameters clearly show that India is in urgent need of reforms to unlock the huge economic potential of the nation.
However, the reforms need to be initiated at various levels across Centre, state and local governments. A coming together of bold and necessary reforms in various areas will herald an era of high value investments, infrastructure growth, job creation, skill development and economic prosperity,” the DIPP said.