 "India eyeing top 30 slot in World Bank's Ease of Doing Business report")
“Our target is to come at the top 30 rank of countries in the World Bank report in the next three years. We will soon release a report card on the states’ preparedness on the ease of business parameters. This will be come out by July-end. We will then get a clearer picture of where India stands after the introduction of programmes like Make in India and also other steps that we have taken in terms of relaxing the regulatory environment for businesses to come in,” a top official from the department of industrial policy and promotion (DIPP) told Business Standard.
The official added that West Bengal, Madhya Pradesh, Uttar Pradesh and Rajasthan are vying to achieve the parameters set by the Union. States have been handed over a questionnaire on a 90-point matrix on the steps taken by them to improve the business environment in their respective states. Based on their responses, the DIPP will be creating a final report ranking the states.
Also Read
DIPP is the nodal agency for foreign direct investments into the country. It is also spearheading Modi’s flagship campaign on boosting the manufacturing sector – Make In India.
The government is excited about the fact that foreign direct investment (FDI) inflows into the country grew 27 per cent to $30.93 billion in 2014-15 compared to $24.29 billion in 2013-14, according to the latest official data.
The growth mainly took place after September 24, when the Make in India programme was launched. Total FDI inflows during the October-February period in the manufacturing sector grew 45 per cent to $7 billion from $4.77 billion in the same period a year ago.
Some of the steps taken by the government are expediting FDI proposals by increasing the limit that needs government approval, faster environmental clearances, simplification of procedures through online mechanism and passing of crucial Bills through the ordinance route.
However, despite this euphoria within the government, companies feel otherwise. They believe the states need to gear up to achieve the target successfully within the stipulated time.
“While at the central level, the government has taken big strides in making the business environment more conducive, the key to realise the prime minister’s vision lies in up-scaling competitiveness among states to emerge as favourite destinations for doing business in India,” said Chandrajit Banerjee, director-general, Confederation of Indian Industry.
According to a CRISIL report, the government has not been able to affect a quick turnaround in the economy but has made progress in putting in place building blocks needed to raise India’s potential growth. Initial steps at improving transparency, enhancing the ease of doing business, improving the efficiency of the goods and labour markets, and financial sector reforms will pave the way for higher growth over the medium run.