CII Suggests Steps To Improve Ease Of Doing Business
Industry body CII has identified measures in key areas for improving India's ease of doing business scenario that can help the country achieve self-reliance.
Micro, small and medium enterprises need a special helping hand, and should be exempted from approvals and inspections for three years under state laws while following all rules, the Confederation of Indian Industry said in a report.
Self-certification route can be used for approvals for MSMEs with good track record, it has suggested.
It also sought effective implementation of online single window system, simplifying property registration and acquisition of land, expediting compliances for labour regulations and synchronised joint inspections.
Besides, the chamber called for simplifying property registration and suggested that industry should be permitted to buy land directly from farmers with deemed approval after 30 days.
Observing that enforcing contracts is a challenge due to insufficient commercial courts and infrastructure, CII suggested major digital reforms such as virtual court proceedings, e-filing, and work from home to speed up court deliberations.
The alternative dispute resolution institutions can be expanded in all parts of the country with arbitration and mediation centres, it added.
India's high logistics costs impact its competitiveness, CII said, noting this will require medium-term action such as increasing the share of railways and waterways in transport, improving first-mile and last-mile connectivity and reducing port dwell time.
With more outcome-oriented action on ease of doing business, huge momentum to India's domestic and overseas investment can be imparted at a time when self-reliance is being strengthened, the chamber said.
"While many policies have been announced for a facilitative investment climate, effective translation into ground-level outcomes will help investor perceptions and further boost confidence.
"We believe that taking the ease of doing business route can unlock huge potential at a time when the world is seeking new investment opportunities," CII Director General Chandrajit Banerjee said.
Central and state governments have introduced a plethora of reforms across various sectors, which have contributed to India's leap of 79 positions from 142nd rank (out of 190 economies) in 2014 to the 63rd in the latest 'Doing Business Report' of the World Bank.
Sustaining this reform momentum can drive new investments including from overseas, the chamber added.