NEW DELHI, 26th December, 2020 (WAM) – Indian states have embarked on a programme of "Ease of Doing Business" reforms, as green shoots appear on the economic landscape following disruptions induced by COVID-19.
Six states have so far completed these reforms, the Ministry of Finance here announced today. The programme is expected to make these states more attractive for investors form abroad, including the Gulf.
They will be of special interest to Non-Resident Indians (NRIs) from the six states, who populate Gulf countries in large numbers. The six reformative states are Andhra Pradesh, Karnataka, Madhya Pradesh, Tamil Nadu, Telangana and Rajasthan.
The last of these states, Rajasthan, completed the schedule of reforms today, the Ministry of Finance announced. These six states have been granted additional permission by the Department of Expenditure to raise money for their further development through open market borrowings as an incentive for undertaking reforms.
The scheme was devised in May this year as preparations began to restore the economy and business confidence once the lockdown caused by the pandemic ended.
The most important change in the Ease of Doing Business is the elimination of the requirements of renewal of registration certificates, approvals and licences obtained by businesses under various Acts of Law.
All the reformative states are required to implement district-level Business Reform Action Plans before the Department of Expenditure can be convinced of the progressive changes and an improvement in business climate.
An example of the reforms is that prior inspection notices are provided to business owners and inspection reports are uploaded within 48 hours of inspection to prevent red tape.
"The Ease of Doing Business is an important indicator of the investment friendly business climate in the country. Improvements in the Ease of Doing Business will enable faster future growth of the economies of states," the Ministry said.
So far, 10 states have implemented the ‘One Nation One Ration Card System’, six states have done ease of doing business reforms, and two states have done local body reforms. Total additional borrowing permission issued so far to the states, which have done the reforms, is Rs 50,253 crore, the ministry added.
WAM/Krishnan Nayar