Ease of doing business focusses on easing permits not facilitating reforms: Experts
The Dollar Business Bureau
The current reforms for ease of doing business in India focus only on simplifying permits but are not actually easing reforms on the ground, believe experts.
These views were expressed by experts and economists at a round-table session titled “Competitiveness and EODB”, held in New Delhi on Monday. The discussion was focused on comparing India and the US, with regard to the ease of doing business.
“There is a huge resemblance in the federal structure of India and the US, where different states have the required powers for influencing the climate for business. For India, learnings from the US can be helpful in implementing necessary reforms,” said Pradeep Singh Mehta, Secretary General, CUTS International.
Otherwise, ease of doing business reforms would be focussed on easing permits only, he added.
Shanthi Nataraj an economist at RAND Corporation said that the policies which promote good business climate along with financial incentives for promoting entrepreneurship and competition, are probably to attract more businesses and boost growth.”
The provision for crucial public goods and services, private sector partnerships and flexibility in labour markets are the key to the growth of medium and small scale enterprises (MSMEs), she added.
Nataraj further said that improving infrastructure, labour laws, education etc, will have more impact and such type of ecosystem will benefit the MSMEs too.
The round-table session was attended by representatives from different sectors such as MSMEs, academia, consultants, economists and former government officials.