Ease of Doing Business: Strengthening India’s Business Framework
What happened
India jumped from 142nd rank in 2014 to 63rd in 2020 on World Bank's Ease of Doing Business rankings. Government implemented comprehensive reforms through digital platforms like GeM, single-window clearances, and Jan Aushadhi scheme. Key initiatives include Startup India, Make in India, and PM Gati Shakti. Recent focus on trust-based governance, reducing compliance burden from 26,134 to 6,000 requirements. Corporate registration now takes 16 days versus 127 days earlier.
Why it matters
Ease of Doing Business represents India's systematic transformation from license raj to digital governance. The World Bank's annual rankings measure ten indicators including starting business, construction permits, electricity access, and contract enforcement. India's dramatic improvement reflects coordinated reforms across federal and state levels. Digital platforms eliminated discretionary decision-making - GeM for government procurement, Shram Suvidha for labor compliance, and unified portals for environmental clearances. Single-window systems replaced multiple agency visits. Trust-based governance shifted from inspection raj to self-certification with post-facto verification. States now compete on business rankings, creating reform momentum. However, challenges persist in land acquisition, judicial delays averaging 1,445 days for commercial disputes, and complex labor laws despite recent codes. The COVID-19 pandemic accelerated digital adoption but exposed infrastructure gaps. Current focus involves AI-driven grievance redressal, blockchain for document verification, and outcome-based regulations. Success depends on implementation consistency across states and sustained political commitment beyond electoral cycles.
UPSC Key: FII bond tax exemption, Nilgiri Tahr, and BS-VI transition in NCR
What happened
Centre exempts Foreign Institutional Investors from capital gains and dividend distribution tax on government bonds to attract overseas funds amid rising borrowing needs. Kerala's Nilgiri Tahr population shows recovery in Eravikulam National Park through conservation efforts. NCR completes BS-VI emission norm transition by April 2023, mandating cleaner fuel standards for vehicles in Delhi-NCR region to combat severe air pollution levels.
Why it matters
These developments reflect India's multi-pronged policy approach across financial markets, biodiversity conservation, and environmental protection. The FII bond tax exemption addresses India's growing fiscal deficit and infrastructure funding requirements by making Indian debt markets more attractive to foreign investors, potentially reducing borrowing costs and currency pressure. The Nilgiri Tahr conservation success in Kerala's Western Ghats demonstrates effective habitat protection and species recovery programs, crucial for maintaining biodiversity hotspots. The BS-VI transition represents India's commitment to reducing vehicular emissions, implementing Euro-VI equivalent standards that cut particulate matter and nitrogen oxide emissions by 80-90%. This transition required massive investment in refinery upgrades and vehicle technology changes. Together, these policies showcase India's balancing act between economic growth needs, environmental sustainability, and global integration. The FII exemption aligns with broader financial sector reforms, while environmental initiatives address climate commitments and public health concerns in pollution-critical regions like NCR.
