Ease of Doing Business Reforms

New Delhi, February 20: Prime Minister Narendra Modi on Saturday stressed the need for a coordinated approach among the states and the Centre to achieve the ‘Atmanirbhar Bharat’ (self-reliant India) goal. Speaking at the sixth meeting of the Governing Council of NITI Aayog, the Prime Minister said that ‘ease of doing business and ease of living’ is also among the government’s priority to a strong country’s economy. He made a strong case for repealing archaic laws for ease of doing business in India and said the centre and states need to work closely to boost economic growth.

Praising the Union Budget 2021-22 which was presented by Finance Minister Nirmala Sitharaman earlier this month, the Prime Minister said that people have made up their minds about what they want. He stressed on ‘zero defect, zero effect’ mantra which he gave in August 2014 to Indian entrepreneurs for better products–a direct reference to the need to make things without causing environmental harm.

During his address, the Prime Minister said that ‘Atmanirbhar Bharat’ campaign is the way to build an India that produces not only for its needs but also for the world, and these productions will also stand the test of world superiority. To achieve the goal, the Prime Minister added there is need for a better coordination among Centre as well as states and increase export.

The Prime Minister stressed on the policy framework and cooperation between the Centre and states, saying “coastal states are a fine example”. “Exports from the blue economy have unlimited opportunities. Why shouldn’t our coastal states take extra initiatives for the same?” He added saying that India managed to build a good image internationally during the Covid-19 period because the central and state governments worked together for the betterment of people.

Kerala has become the 8th State in India to successfully undertake ‘Ease of Doing Business’ reform stipulated by the Department of Expenditure, Ministry of Finance. The ease of doing business is an important indicator of the investment friendly business climate in the country. Improvements in the ease of doing business will enable faster future growth of the state economy. Therefore, the government of India had in May 2020, decided to link grant of additional borrowing permissions to States who undertake the reforms to facilitate ease of doing business. Kerala has become eligible to mobilise additional financial resources of Rs 2,261 crore through Open Market Borrowings.

An official release by the government stated that the permission for the same was issued to Kerala by the Department of Expenditure on January 12, 2021. Kerala has now joined the seven other States namely, Andhra Pradesh, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu and Telangana, who have completed this reform. On completion of reforms facilitating ease of doing business, these eight States have been granted additional borrowing permission of Rs 23,149 crore.

State wise amount of the additional borrowing permitted is as under:

Sr. No.	State	Amount (Rs in crore)
1.	Andhra Pradesh	2,525
2.	Karnataka	4,509
3.	Kerala	2,261
4.	Madhya Pradesh	2,373
5.	Odisha	1,429
6.	Rajasthan	2,731
7.	Tamil Nadu	4,813
8.	Telangana	2,508

The reforms stipulated in this category are:

(i) Completion of first assessment of ‘District Level Business Reform Action Plan’

(ii) Elimination of the requirements of renewal of registration certificates/approvals/licences obtained by businesses under various Acts.

(iii) Implementation of computerized central random inspection system under the Acts wherein allocation of inspectors is done centrally, the same inspector is not assigned to the same unit in subsequent years, prior inspection notice is provided to the business owner, and inspection report is uploaded within 48 hours of inspection.