Ease of doing business: India recently obtained the 100th position in a global list of places that are favourable to traders and their businesses.
Ease of doing business: India recently obtained the 100th position in a global list of places that are favourable to traders and their businesses. With this new height of success, the Narendra Modi government is now planning to move ahead in the Ease of doing business list and is set to bring in new laws to leapfrog into the top 50 positions. According to a top government official, three draft bills have been prepared by the Union Law Ministry to amend key laws that deal with India’s regulatory and arbitrary framework so that it becomes easier to enforce contracts and reserve business disputes, Hindustan Times reported. In order to further improve the ease of doing business in the country and also to promote it as an investment destination, the ministry is currently pushing for changes in at least three laws. The law ministry wants the union government to present the water amendment bill later this year during the winter session of the Parliament.
With the new amendments, changes will be made in a 2015 law, that will be aimed to reduce the pecuniary jurisdiction of commercial courts from Rs 1 crore to Rs 3 Lakh. The official who was involved in the drawing up of the amendments was quoted by HT as saying that this change will thus enable the resolution of a larger number of business disputes faster. In territories over which only high courts have civil jurisdiction, the ministry also wants to amend the laws to enable the setting up of commercial courts. One such state where the high court has civil jurisdiction is Delhi, where the time and money spent on commercial disputes resolution can help in order to improve India’s ranking on the World bank’s influential ease of doing business index.
While talking about how keen the government is to bring in a statute and set up a New Delhi Centre for Arbitration, the official added that they are working on the final nomenclature. Earlier in the month of August, the government was recommended by a panel set up under Justice BN Srikrishna, to take over the International Centre for Alternative Dispute Resolution (ICADR) from the Supreme Court and use it to turn India into a hub for international arbitration. These statements by the government official come after India jumped 30 places to reach the 100th spot in the World Bank ranking that were released last month and included 192 countries. This was described as a quantum leap by the government.