Commerce Ministry seeks industry support to aid ease of doing business

NEW DELHI: The Commerce Ministry today sought feedback from all the stakeholders including industry associations to further improve the ease of doing business in the country.

The Department of Industrial Policy and Promotion (DIPP) under the ministry has taken several steps in this direction but constant feedback is needed from the industry to accelerate ease of doing business, DIPP Secretary Ramesh Abhishek said.

"We need constant engagement and feedback from the industry. I urge you to participate with the government in this massive exercise," Abhishek said while addressing Ficci members on 'Ease of Doing Business: Distance and Destination'.

He said in the last two years the Centre as well as state governments have worked on all the 10 parameters on which the World Bank ranks countries in the doing business index.

The 10 parameters assess areas such as starting a business, construction permits, getting electricity and conducting trade across borders.

India's rank in the Doing Business Report 2016 improved to 130th from 134th in the previous year. The next report is scheduled in October, where India's ranking is expected to improve further.

The steps taken by the Centre and states in the recent past include increasing validity of environment clearance from 5 years to 7 years; doing away with environment clearance for 36 white industries and introduction of online registration of VAT with real-time Tax Identification Number (TIN).

Speaking at the event, Secretary, Institute of Company Secretaries of India, D C Arora said there should be single window mechanism for approvals and clearances as it will help attract investors.

A Ficci paper stated that the main challenge is to create a culture of arbitration in India as an effective alternate dispute resolution mechanism to mainstream litigation.

"Enforcement of contracts and dispute resolution is key to business transactions and creating a conducive environment for arbitrations in India," it said.