The government aims to reduce about 2,500 compliances this year as states begin the next round of train to determine which compliances need simplification, Anurag Jain, secretary of the Industry Promotion Department, told ET and Internal Trade (DPIIT).
Of the 32,000 previously recognized compliances, approximately 26,000 have been reduced and of the remaining 6,000, approximately 3,500 do not need to be reduced.
“About 2,500 (compliances) still remain. It was decided that by the end of January – which just passed – they (the States) would undertake another exercise and flag what compliances still need to be simplified. So 2,500 is a carryover from last time, but on top of that they would try harder to identify,” Jain said.
The Secretary mentioned that the ease of habitation framework and the cost of doing business are the brand new ideas that the DPIIT is committed to.
“You take any element of governance, there’s always room for improvement,” Jain said.
On the ease of doing business, he said the division had already shared a dialogue document with the states for the next version of the Business Reform Action Plan (BRAP) ranking, as it is essential for the ease of doing business and ease of accommodation, and a group of 5 states. was set up to review the main points after which a framework could be finalized. The previous BRAP 2018-19 was mainly based on 187 reform factors covering 45 areas of business regulations such as easy accessibility to information, improved labor legal guidelines, fast building permits, land administration and one-stop-shop approvals. It aims to improve the business climate in states by simplifying procedures, digitizing information and easing the burden of compliance in sectors such as retail, training, health, food and beverage, real estate, gems and jewelry, mining and recreation.
“So it’s a framework for the BRAP that we’re doing right now. In light of what was announced in the budget, we will harmonize these things,” Jain said.
In order to improve the productive efficiency of capital and human assets and to comply with the idea of ”trust-based governance”, the 2022-2023 budget introduced the launch of the following section of the doing business 2.0 and the ease of living.
“We’re also going to move on to the cost of doing business and that will put another competition on states’ minds and cause them to revamp their processes,” Jain said, adding that consultations on the issue are at a preliminary stage.
This would relate to the time and cost of starting a business in the states.
“We also took ease of living as another concept because we are the nodal ministry for that. In living comfort, we look at citizen services,” the secretary said.
This would be accompanied by a simplification of processes and a simpler supply of service providers.
“Even if the services are computerized, there must be a framework to ensure that the services are delivered within a reasonable timeframe,” Jain said.