We expect India’s Ease of Doing Business (EODB) rank to significantly gain in the coming years. On the back of multiple policy reforms, digital led process transformation and capacity building in government, things will change for good. We briefly highlight fifteen important initiatives by the government, that have and will continue to play a decisive role in enhancing ease of doing business in India.
|COMPACT and GePG
|Selling to the Government
|The Government e-Payment Gateway at the Pay and Accounts Offices of the Government of India has reduced the average payment cycle from 20-25 days to 4-5 days. The automation of payment process helps the corporate citizens who sell to the government.
|The e-biz portal provides various services to the entrepreneurs in starting and running a business. The entrepreneur can create an account and avail the industry specific services at one location.
|Automation of courts through e-courts which allow the complainants to file cases electronically. There are many sub-parameters on which a lot remains, e.g.improving quality of judicial processes, automation of courts, creation of alternative dispute resolution agencies, creation of more commercial courts and bringing about judicial sector reforms.
|Selling to the Government
|Selling to the government has become easier after the launch of the e-procurement module in various government departments. Tendering process has become online and transparent.
|Multiplicity of indirect taxes, multiplicity of institutions managing & collecting indirect taxes will be a history. GST would club all the indirect taxes into one and there would be uniform and easy procedures of payment.
|Land records and property registration
|Digitization of land records and property registration helps businesses to have a seamless experience. Digital records are less prone to forgery and hence offer better enforceability.
|The MCA 21 project is instrumental in the incorporation process. It impacts the starting a business parameter in ease of doing scores. With this project in place the ministry of corporate affair offers a broad bouquet of e-services to the corporate citizens.
|Pradhan Mantri Mudra Yojana
|The government’s efforts to provide loans to the Micro, Small and Medium enterprises through Pradhan Mantri Mudra Yojna (PMMY) are paying off by making it easy for the MSMEs to obtain institutional loans from banks at very competitive rates.
|Power Sector Reforms
|India’s score on getting an electricity connection is good for the EODB ranking. This can be attributed to the power sector reforms in general and digitalization of application process in particular.
|Shram Suvidha Portal
|Labour Market Regulation – Additional Parameter
|Shram Suvida Portal is a one-stop-shop for Labour Laws compliance. It consolidates information of labour inspection and its enforcement. It promotes the use of a common Labour Identification Number (LIN) to comply with more than 40 labor laws.
|Taxpayers services and TRACES by Income Tax Department
|Corporate Income Tax is adding value to the score of EoDB. Through multiple projects, the Income Tax Department has facilitated various e-services to the individuals as well as the corporate citizens. These services include e-filing of income tax return, online payment of taxes, e-TDS reconciliation etc.
|The Insolvency and Bankruptcy Code, (2016)
|The Insolvency and Bankruptcy Code, (2016) is a big statutory reform on bankruptcy. The code brings about an amendment into existing 11 laws to offer a consolidated law which defines time limit to resolve insolvency and has a provision of a regulator to oversee the process. This will have a big implication of the EODB score.
|Dealing with construction permits
|Though eMunicipality is one of the Mission Mode Projects, a lot remains to be done in terms of simplifying the processes.
|Protecting minority investors
|The MCA 21 project is instrumental in ensuring processes for greater transparency in the conduct of a corporate entity. SEBI also plays a key role.
|EDI for eTrade
|Trading across borders
|This Mission Mode Project seeks to simplify procedures, introduce electronic delivery of services, provide 24/7 access to users, increase transparency, reduce transaction cost and time.
Some of these initiatives are already rolled out, some other are in the process and others will soon see the light of the day. We believe that a converged effect of all these initiatives shall make the progress very rapid.
* Not included in the ease of doing business ranking for 2017.
Low – DTF Score of <40, Medium – DTF Score of 40-70 and High – DTF Score of >70