NEW DELHI: The Cabinet is likely to take up some ‘Ease of doing Business’ measures recommended by the finance, industry, corporate affairs, environment and labour ministries, some of which may figure in the Union budget.
These include single-day registration of companies, deemed renewal of licences if the department concerned does not raise any objection within a stipulated period, easier financing norms, and a window for MSME financing, said officials.
Top officials said norms would also be tweaked to do away with many inspections and allow for self-certification. “However, at the same time, penalties for wrong disclosures and self certification may be increased to deter mis-declaration in order to obtain licences or renewals or violations of industrial and labour norms,” said officials.
New norms also call for nodal officers at various levels to address applications and grievances. They also call for certain standards and mechanisms for consulting industry and other stakeholders on issues such as public service quality.
“When the Insolvency Code is tweaked we will also bring in measures such as allowing group insolvencies, instead of doing insolvencies for each individual firm, pre-packaged insolvencies as also rules for faster IBC clearances for small businesses,” officials said.
Last year, India dramatically jumped 23 countries to reach the 77th rank in the World Bank’s ‘Ease of Doing Business’. The index, which ranks 190 countries on the basis of 10 indicators, from starting businesses to resolving insolvencies, ranks New Zealand at the top and India’s main rival China at the 46th rank.
Despite the jump in rankings in the last three quarters of 2019, India’s net FDI inflow slowed down and stood at $6.4 billion for the January-March 2019 quarter and unchanged for the year at $30.7 billion, nearly the same as the previous year.