TAKE OFF OF DELAYED REFORMS EVEN NOW CAN BRING IN EASE OF DOING BUSINESS RANKING UNDER 50 BY 2020: PHD CHAMBER

TAKE OFF OF DELAYED REFORMS EVEN NOW CAN BRING IN EASE OF DOING BUSINESS RANKING UNDER 50 BY 2020: PHD CHAMBER

TAKE OFF OF DELAYED REFORMS EVEN NOW CAN BRING IN EASE OF DOING BUSINESS RANKING UNDER 50 BY 2020: PHD CHAMBER

 

No.PR-100
September 23, 2015
New Delhi

 

TAKE OFF OF DELAYED REFORMS EVEN NOW CAN BRING IN EASE OF DOING BUSINESS RANKING UNDER 50 BY 2020: PHD CHAMBER
 

With prevailing political economy, consenting to bring about GST, single window clearance for project approvals, replacing prototype labour regulations witn ones that are in vogue in economies of scale with high capacity national transmission grid and improving flow of credit to infra sector, India could achieve upper level ease of doing business ranking under 50 by 2020, according to PHD Chamber of Commerce and Industry.
 

In a paper on ‘Progress of Make in India’ brought out by the Chamber’s Research Bureau and was released here today by Mr. Ajay Shankar, Chairman, Expert Committee for suggesting Simplified Compliance for Establishing New Industries, Ministry of Commerce & Industry points out that the suggested reforms coupled with several recent announcements by the government to facilitate ease of doing business will improve so much that it could come at projected level of 50 in next five years.
 

The paper was released at a Seminar on ‘Progress of Make in India : The Way Forward for Scripting India’s Growth Story’  in the presence of the President, Sr. Vice President, Vice President and Secretary General Mr. Alok B. Shriram, Mr. Mahesh Gupta, Mr. Gopal Jiwarajka and Mr. Saurabh Sanyal including Former Vice Chancellor, JNU, Dr. B.B. Bhattacharya, however, adds that the problems faced by business and industry demand the suggested solutions.
 

The findings of the paper are based on a survey conducted by the PHD Chamber to gauge the facilitation in the business environment since the launch of make in India in which around 200 business leaders were probed belonging to micro, small, medium and large enterprises across the sector and states.
 

According to it, 52% of the respondents are optimistic that “Make in India” programme has facilitated ease of doing business in the economy and place it on higher and sustainable growth trajectory in coming times. However, 48% of them stated that although the programme is appreciable but reforms are not yet visible on ground level. The government needs to do a lot for the implementation of the reforms.
 

It also revealed that there are few obstacles that still affect the businesses; the most severe being administrative bottlenecks (Rank1) followed by Government regulations (Rank2), delays in environmental clearances (Rank 3), power and Water shortages (Rank 4 and Rank 5 respectively).  The other major problems faced by the businesses that need to be addressed are infrastructural bottlenecks (Rank 6), Corruption (Rank 7) and high capital cost (Rank 8). Further, taxation problems (Rank 9), access to land (Rank 10), increasing borrowing and labour cost (Rank 11 and Rank 12 respectively) are the other issues that need to be addressed to facilitate ease of doing business. Unskilled workforce (Rank 13), stringent custom and trade regulations (Rank 14), stringent and inflexible labour regulations (Rank 15), inadequate R&D activity (Rank 16) are the other issues that confronts the industry. Also, high cost of raw materials(Rank 17), poor access to raw materials( Rank 18), currency volatility( Rank 19) and lack of financial resources (Rank 20) are the other problems that that needs to be addressed to push the manufacturing sector’s growth rate in the higher growth trajectory in the coming times.
 

Among other who were present on the occasion comprised Chairman, Indo-German Export Promotion Programme (IGEP) Foundation Dr. Dietrich Kebschull; Chairman and Co-Chairman, Economic Affairs Committee, PHD Chamber Mr. Prabhat Jain and Mr. Akhil Bansal and Chairman, Industry Affairs Committee, PHD Chamber Mr. Anil Khaitan.
 

ENDS
 

Koteshwar Prasad Dobhal
Consultant (PR)