Investors facing hurdles in starting or doing business in India can now look forward to a resolution within 72 hours, so long as it does not involve policy changes.
The government, in the run-up to the launch of the ‘Make in India’ campaign, has formed a panel of eight experts and identified nodal officers in various departments to address investment-related grievances of domestic and global investors. The campaign would be launched by Prime Minister Narendra Modi on September 25, which would be attended by business leaders from across the world.
A senior official told The Indian Express that the panel, which has members from the private sector with expertise in areas such as finance and law, would address the queries in a time-bound manner, to enhance the ease of doing business in India. The panel is attached to Invest
India, a joint venture between the department of industrial policy and promotion (DIPP) and industry chamber Ficci.
“We have created an auto-response mechanism. If the investor will not be satisfied with it, then it will be sent to the experts who would try to resolve the issues within 48 hours. And in case they are unable to resolve it within the time frame, it would go to the nodal officer of the respective department who will try to fix that within 72 hours and in the extreme cases, the query would go to the secretary,” the official said.
The secretary will have to resolve the issue within a week, the official added.
The DIPP is taking concrete steps to attract investors in the manufacturing sector in consonance with the Prime Minister’s call to ‘Make in India’ in his address on Independence Day.
The government has already begun measures aimed at simplifying procedures. In addition to improving India’s perception on the ease of doing business, the government is looking at deregulation and delicensing of several sectors.
The DIPP has identified 25 sectors, which includes auto components, aviation, biotechnology, chemicals, electronics, food processing, IT and BPO, leather, oil, mining and roads and highways to act as anchors to manufacturing activity.
“These sectors require a lot of initiatives and push by different departments, ministries and state governments. The mindset needs to be changed for things like approval and clearances of applications through online process. Our target is that India should radically come up in improving ease of doing business,” the official added.
Currently, to start a business in India, an entrepreneur has to follow 12 procedures which takes 27 days to get clearances. A construction permit needs 35 procedures to be fulfilled, which runs into 136 days. Enforcement of contracts takes 1,420 days.
The World Bank’s ‘Doing Business’ report has ranked India at the 134th position in 2013. To make the campaign a success, the government will take up digital campaign initially, identifying the companies across the world and focussing on their problems.