New labor law to be implemented soon to make further progress in Ease of Doing Business Rankings

- It is also necessary to make the information of amendment in the Acts easily available

India, which lags behind in the Ease of Doing Business rankings, has made good progress in the recent past. India had moved from 18th rank in 2016 to 9th rank by 2020. The current government intends to take this rank further. It cannot be said with confidence that even if a weak student suddenly gets a leading rank in school or college examination or succeeds in getting it, his weaknesses have been removed, a similar situation is seen in the case of doing business in India. A recent survey said the country's industries, especially micro, small and medium enterprises (MSMEs), were facing many difficulties in trading or starting new businesses.

In order to make it easier to do business in the country, most of the more than 100 MSMEs served were demanding amendments to various laws and easy access to basic information on what the basic laws are. Government officials and tax experts or legal experts have a lot of information about the kind of reforms that have been made for the business world, they are not easily available to the general business world. If made available, its text is so intricate that it is difficult to understand.

Emphasis was also laid on formalizing the work of intermediaries between the government and industry or legal experts who are carrying out other activities, including obtaining approvals or licenses from various government departments. A regulatory government mechanism needs to be set up for such specialists to prepare a regulatory framework for the services they provide and the fees charged for them. In other words, if the intermediaries cannot be eliminated, then nothing can be brought under control.

There have been many improvements on paper but the tone of the survey has also been that there has been or has not been any change in the method of administration and administration. The survey indicates that a high ranking does not justify a country's economic growth. When ranking a country in Ease of Doing Business, the World Bank considers 10 key criteria, including time to start a business, necessary permissions, lending arrangements, investor protection, tax levels, foreign trade, insolvency, etc.

The government is confident that the days of India's rankings may not be far off once laws like IBC and GST are enacted, but the implementation of these two reforms, especially IBC's, has not been as successful as it should have been and lenders still suffer huge losses in recovery. The World Bank cannot cover the entire system of a country to give this ranking. This means that the ranking system is very limited. While the World Bank considers the position of doing business in cities like Mumbai and Delhi to give India a ranking, India is a huge country and there is a wide gap in starting and doing business in each city and state. Therefore, it cannot be said that Mumbai and Delhi reflect the whole of India. There is no reason to assume that everything will be the same in Mumbai-Delhi as it is all over India.

The World Bank's ranking gives an indication of whether it will be easier to do business in that country. It also helps the country formulate its trade policy based on the World Bank's recommendations and recommendations. In the absence of such information, the government often fails to formulate its own policy, which has an impact on investment inflows. India has improved its ranking in Ease of Doing Business in recent years but has not seen much growth in industrial investment. The reason behind this is that when investors come to invest in the country, they invest not in cities like Mumbai and Delhi but in industrial areas which fall in any other state and city of the country. So the investors themselves first look at the local conditions of the area in which they are investing.

In some areas in India, laws are enforced by both the Center and the State. States also have their own rules for local autonomous bodies. States play their role in building permits, water supply systems, electricity connections, pollution control systems, etc.

The role of states remains crucial to further India's position in the Ease of Doing Business Index. If the states do not implement good governance in setting up new businesses, the Center will face many limitations in advancing the rankings. The central government has enacted special legislation to implement new labor laws in the country, but its rules have not yet been drafted by the states, which has led to lengthy amendments to the labor laws.