The Department of Industrial Policy and Promotion in the commerce ministry has asked state governments and central ministries to re-examine and streamline existing procedures, so as to provide a hassle-free environment for business.
The government is setting new targets and also plans to reduce start-up time for new ventures in India to 25 days. According to a World Bank report, the start-up time is 35 days in the country.
The government is also taking steps to cut the number of documents required for import/export to around five.
According to the World Bank report findings, Indian exporters have to file 10 documents, while importers have to file up to 15.
The industry department has asked concerned ministries and departments, as well as the states to outline the measures taken by them to streamline procedures needed by corporates to conduct business in India.
The proposed changes compare well with China, where it takes 35 days for a business to be set up. However, exporters in China have to fill only six documents, while importers have to file 12 documents. In Pakistan, exporters have to fill eight documents, while importers have to file 12 documents.
The Indian government's move comes in the backdrop of the World Bank report (Doing business in 2007 - How to reform), released last September. The report ranked India at 134 globally on the parameter, "Ease of Doing Business".
Though India had managed to better its ranking by four notches over 2005, the government took the report seriously and initiated a reform process.
Accordingly, Cabinet secretary BK Chaturvedi has over the past few months held a series of meetings with the secretaries of commerce, economic affairs, revenue, shipping, financial sector, land resources and small scale industries. These meetings identified a number of corrective measures.
In fact, some other recent measures taken to create a business-friendly environment in the country, include on-line registration of companies through MCA-21, online registration of Employees State Insurance Corporation and Employees Provident Fund, provision of permanent account number, tax account number though a single source, as well as the abolition of the Central Sales Tax from 2010.