India is ranked 100 among 190 economies in the ease of doing business according to the latest World Bank annual ratings. The major improvements such as resolving insolvency, paying taxes online, protecting minority investors and getting credit made India to jump to the 100th rank.
India has been reported to be the third biggest country for the technology-driven start-ups after US and UK, according to the Assocham’s report. Bangalore is the home for the majority of domestic tech start-ups, followed by Delhi and Mumbai. So, let us discuss the major factors which make business in India easier.
The introduction of online application system by using technology of single window system made easier for the public to approach the governments and also merging the PAN and TAN and other related accounts and documents also fasten the growth of business. State governments are taking several steps such as setting up of single window system for approvals to improve ease of doing business.
India strengthened the minority investor protections by requiring greater disclosure of conflicts of interest by board members, increasing the remedies available in case of prejudicial related-party transactions and introducing additional safeguards for shareholders of privately held companies.
The implementation of the concept of One Person Company in the Companies Act, 2013 also enhanced the establishment of start- ups and eased the reach of the concept of business at all levels.
Government of India has formulated numerous policies and programmes for the promotion of business all over the country and to promote and protect small scale businesses and minority investors. The policies and programmes include:
- Make in India Policy promotes manufacturing with the key objective of improving competitiveness of the private and public sector firms operating in the country, facilitating their integration into the global value chains and enabling them to better compete in global markets. It also focuses on the speedy implementation of reforms to bring improvement in the business environment of the country and to develop a sense of ‘Invest in India’ and also to amplify the outreach of the products manufactured in India thereby supporting the new business and other minority investment groups.
- Start- up India Policy implemented on behalf of Department for Industrial Policy and Promotion aims to empower Start- ups to grow through innovation and design by giving funding support which include tax exemption on start- ups for 3years, tax exemption on investments above fair market value, and by conducting start- up fests and providing collaboration forum; Industry-Academia Partnership and Incubation.
- Digital India Policy ensures that the Government services are made available to citizens electronically by improved online infrastructure and by increasing Internet connectivity or by making the country digitally empowered in the field of technology. By delivering governmental services digitally, it made easier of the public to access various services and also in remitting taxes and filing reports online and thereby reduced the lag in all matters related to business.
- National Manufacturing Policy provides the Cost of Master Planning of National Investment & Manufacturing Zones (NIMZs) established in the various States. The Cost of Master Planning of the NIMZ will be granted to the State Government/SPV of the concerned NIMZ, which is finally approved by the Central Government.
- Industrial Policy focuses on deregulating Indian industry; allowing freedom and flexibility to the industry in responding to market forces; and providing a policy regime that facilitates and fosters growth. A number of initiatives have been taken for Ease of doing business for Industrial Licensing, which include online application submission for Industrial License (IL) and Industrial Entrepreneur Memorandum (IEM) on 24X7 basis at e- Biz website, increasing initial validity period of Industrial License has been increased to three years from earlier two years with extension of validity up to seven years, simplification of application Forms for Industrial License & Industrial Entrepreneur Memorandum etc.
- National IPR Policy aims to encourage creativity and innovation, leading to generation of IPs and their protection through IPRs. Formulating action plans to encourage R&D as well as to improve IPR output from Govt. laboratories and organizations, with special focus on national priority areas. It also promote commercialization of IPRs, to identify opportunities for marketing Indian IPR-based products, especially GIs, and services to a global audience and endeavours to provide a platform to connect innovators and creators to potential users, buyers, investors and funding institutions. It also strengthens the enforcement and adjudicatory mechanisms to combat with IPR infringements and other grievances. It will coordinate with agencies at State level and with the various Ministries/ Departments of the Union Government through Cell for IPR Promotion and Management (CIPAM).
- National Design Policy established a committee for the constitution of the Design Council of India and intends to improve the manufacturing competency of the Ministry of Micro, Small & Medium Enterprises (MSMEs) through design intervention to their products and services and to provide them design edge in the global market and hence supports the “Make In India” programme of the Government of India.
There are many incentives both financially and technically for the promotion of start- ups and other investments which widens the platform for doing business in an easier manner. The governmental agencies are implementing advanced policies and programmes; but the sudden demonetisation and implementation of Goods and Services Tax instead of Value Added Tax made a quake in the economic field of our country which as experts says may result in the betterment of business and industrial arena in the near future.
Irrespective of the improvements made, still there are some lacunas and discrepancies to be rectified so that the country can in turn improve its economy and eventually, the standard of living.