Winds of Change

Dear Foreigner :

Since installation of NDA government at the Centre in May 2014 , Winds of Change are sweeping across India

These changes are taking place in political , social and economic spheres

But the most far-reaching changes are manifesting in the economy

Especially in the area of dismantling of unnecessary controls , removal of hurdles , streamlining of processes etc , relating to setting up of businesses / industries

In short , Governments in India ( both , at Centre and in States ) are determined to make India ,


Following news-report is indicative of the " Winds of Reform " , sweeping India

with regards ,

- Hemen Parekh

Source : Economic Times / 10 Feb 2015 / Bengaluru

States to be Ranked on Ease of Biz

The ranking , to be done with help of a consulting agency , is expected to be in place by June 2015

The Centre will soon start ranking states on the ease of doing business and in getting clearances, quietly pushing 'competitive federalism' along with 'cooperative federalism' that Prime Minister Narendra Modi called for at the first NITI Aayog meet on Sunday

The department of industrial policy and promotion (DIPP) has circulated 98 action points to state governments on "creating an enabling framework for simulating investments in manufacturing" with specific timelines for each action.

The states will be ranked based on these parameters that include the ease in setting up business, registration of property, labour compliances, infrastructure availability, finance and tax issues, inspection reforms and ease in exiting business

The move is in line with the Modi government's goal to take India to the top 50 in the World Bank rankings on the ease of doing business, up from a lowly 142th position at present.

"They are passing on the pressure from the PM down to the states through this," Karnataka's commissioner for industrial development Gaurav Gupta told ET.

"If one state is ranked low, it will be under tremendous pressure to improve that ranking in order to attract investments," he said.

The ranking, to be done with the help of a consultative agency, is expected to be in place by June.

The action plan was made after consulting state governments across political lines as well as different industries.

" They are asking us how the states can help manufacture or make in India ," Gupta said. " They ask us to explain what we are doing and then tell us what they expect of us.

" Surendrakumar Bagade, Maharashtra's development commissioner for industries, said the ranking will push each state to perform better.

Competitive Federalism

Some Goals and Deadline DIPP Set for States

Implement and enforce single-window clearance institutional mechanism for starting up of business with all relevant officers of various departments housed in a single office. MARCH 31, 2015

Combine all application forms required to start a business into one online combined application form. MAY 31, 2015

Provisions for deemed approvals for applications on which suitable action is not taken within prescribed time limits. along with penalty on officers failing to dispose of cases in time. MARCH 31, 2015

Develop a comprehensive digitalised GIS-enabled land records database in a time-bound manner, preferably with information on available infrastructure like water, power, sewerage, highway/road connectivity, etc. JUNE 30, 2015

Ensure date is digitised at sub-registrar’s office, land records and municipal records for property tax. JUNE 30, 2015

Develop a portal for providing Online services for various labour law compliances, and registration and renewal of licences. JUNE 30, 2015

Consolidate and rationalise all state specific labour laws to bring consistency in definitions & coverage. JUNE 30, 2015

Allow online payment of all state levies and taxes. JUNE 30, 2015

Set up specialised courts or commercial divisions in existing courts to resolve commercial disputes. JUNE 30, 2015

Develop a single-window approval system for state-level issues to ensure easy exit of business. JUNE 30, 2015