New Delhi: Five more States namely, Arunachal Pradesh, Chhattisgarh, Goa, Meghalaya and Tripura have completed the “Ease of Doing Business” reforms stipulated by the Department of Expenditure taking the total to 20.
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.
The States completing Ease of Doing Business reforms are eligible for additional borrowing of 0.25 per cent of Gross State Domestic Product (GSDP).
The government of India had in May 2020, decided to link the grant of additional borrowing permissions to States who undertake the reforms to facilitate ease of doing business. The reforms stipulated in this category are:
(i) Completion of the 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 the inspection report is uploaded within 48 hours of the inspection.
In view of the resource required to meet the challenges posed by the COVID-19 pandemic, the Government of India had on 17th May 2020 enhanced the borrowing limit of the States by 2 per cent of their GSDP.
