Image source: PM India website
Introduction
Narendra Modi, the Prime Minister of India, has been actively working towards improving the ease of doing business in the country. His vision is to transform India into a global manufacturing hub and attract foreign investments. To accomplish this, he has implemented several initiatives to streamline bureaucratic processes and reduce the burden of red tape.
The Need for Reforms
Before Modi took office, India was known for its complex regulatory environment and bureaucratic hurdles. Entrepreneurs and businesses faced numerous challenges, including excessive paperwork, delays in obtaining permits, and corruption. These obstacles deterred both domestic and foreign investors, hampering economic growth and job creation.
Make in India Campaign
One of Modi’s flagship initiatives is the “Make in India” campaign. Launched in 2014, it aims to transform India into a global manufacturing hub by encouraging both domestic and foreign companies to invest and manufacture within the country. The campaign has identified 25 key sectors and implemented targeted reforms to facilitate investment and ease of doing business in these sectors.
Image source: Make in India website
Streamlining Bureaucratic Processes
Modi’s government has initiated several reforms to simplify bureaucratic processes and reduce red tape. The introduction of the Goods and Services Tax (GST) in 2017, for example, replaced a complex web of indirect taxes with a single unified tax structure. This streamlined taxation system has reduced compliance costs and improved the ease of doing business.
Digitization and E-Governance
Modi has emphasized the importance of digitization and e-governance to improve transparency and efficiency in government processes. Initiatives such as the “Digital India” campaign have been launched to promote the use of technology in delivering government services. Online portals and platforms have been developed to simplify procedures for business registrations, tax filings, and obtaining permits.
Image source: Digital India website
Bankruptcy and Insolvency Reforms
Recognizing the importance of a robust bankruptcy framework, Modi’s government introduced the Insolvency and Bankruptcy Code (IBC) in 2016. The IBC provides a time-bound and efficient process for resolving insolvencies, ensuring faster debt recoveries and reducing the risk for creditors. This reform has instilled confidence in the business community and improved India’s ranking in the ease of doing business index.
Conclusion
Narendra Modi’s efforts to boost the ease of doing business in India have yielded significant results. India’s ranking in the World Bank’s ease of doing business index has improved considerably in recent years, attracting more investments and fostering economic growth. While challenges remain, Modi’s commitment to reducing red tape and improving governance has laid a strong foundation for a business-friendly environment in India.