Govt plans to scrap over 6,000 compliances to facilitate ease of doing business


In a bid to attract major private investments in the priority sectors after announcing the Production Linked Incentive (PLI) scheme, Prime Minister Narendra Modi on Friday met dozens of industry leaders via video conferencing. Prime Minister Narendra Modi said the government plans to do away with over 6,000 compliance requirements for businesses both at the central and state levels this year to facilitate ease of doing business in India.

“We are going to take it seriously. We have to get rid of the requirement to fill up umpteen forms. Your suggestions are crucial,” Modi told industry leaders.

Interacting with India Inc for information sharing and brainstorming on PLI schemes, PM Modi said the PLI scheme is aimed at expanding domestic manufacturing and boosting exports.

Read Also: EPF Interest will be taxable above Rs 2.5 lakh

Department for Promotion of Industry and Internal Trade (DPIIT) secretary Guruprasad Mohapatra said last year that the Centre has started identifying redundant rules in state and central laws that can be removed to reduce compliance burden for companies operating in India. “It is a major assignment given by the Prime Minister, and the cabinet secretary is monitoring its progress,” he had said in July last year.

Citing a study by the National Restaurants Association of India (NRAI), the Economic Survey FY20 said one needs 45 documents to obtain a licence from Delhi Police to open a restaurant—far more than the number of documents required for a licence to procure new arms (19) and major fireworks (12).

Read Also: Bank holidays in March 2021- Banks to remain close for 11 days

The Survey said a major challenge most firms face is the complex architecture of the governance framework, including the density of legislation and statutory compliances.

On Friday, Modi said through the PLI scheme, the government is trying to emulate the examples of countries that have been successful in accelerating development by acccelerating manufacturing. “Manufacturing firms should make India their base and our domestic industry, the number and strength of our MSMEs should expand,” he added. So far, the government has announced 13 PLI schemes worth Rs1.97 lakh crore in sops to boost local manufacturing with an aim to produce about $520 billion in India in next five years.

Read Also: 5 Steps to get Financial Freedom in your life

The PLI schemes in information technology hardware and telecom gear manufacturing will lead to a tremendous increase in production and domestic value addition. “IT hardware is estimated to achieve Rs3 lakh crore worth production in four years and domestic value addition will rise from 5-10% to 20-25% in five years. Telecom gear manufacturing will see an increase of Rs2.5 lakh crore. We should be able to export (goods) worth Rs2 lakh crore from this,” Modi said.

Read Also: GST council should consider rationalisation, bring petrol under GST, says Sitharaman

Key points from what PM Modi said:

  • Successful efforts have been undertaken to encourage the “Make in India” initiative in the last 6-7 years.
  • Thirteen sectors such as auto, pharma to get a Production-linked inventive scheme.
  • PLI scheme for textile and food processing to help the entire agriculture sector.
  • Provisions worth around Rs2 lakh crore PLI scheme have been made.
Disclaimer:The article or blog or post (by whatever name) in this website is based on the writer’s personal views and interpretation of Act. The writer does not accept any liabilities for any loss or damage of any kind arising out of information and for any actions taken in reliance thereon. 
Also, and its members do not accept any liability, obligation or responsibility for author’s article and understanding of user.

For Collaboration with us-

Tags: blog

Related Articles

No results found.

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed