Ease of Doing Business

Protecting Minority
Investors
Getting
Electricity
Registering
Property

Dealing in
Construction
Permits Paying T
ax

es
Starting a Business

Trading Across
Transforming Business Environment in India
Borders

Getting Credit Resolving Insolvency Enforcing Contracts

01

Due to the circumstances which existed before, there

was a time when it was asked - Why India? Now after
looking at the impact of the reforms that have taken
place in the country, it is being asked - 'Why not India’?

Prime Minister Narendra Modi

ASSOCHAM Foundation Week 2020
 02

THE JOURNEY SO FAR

A decade back, India being a top business Prime Minister Shri Narendra Modi, this process
destination seemed like a farfetched dream. Any underwent a complete change with the
person wanting to do business in India would have Government responding innovatively. This
to navigate in a sea of complex processes and started the journey of government process
arduous processes. The poor Foreign Direct reengineering, bringing various ministries and
Investment numbers were a reflection of the departments of the Centre and State together to
dismal image of India as a business location. achieve a common goal of making India the most
preferred business destination.
India was marred with myriad problems. The
investor had to run from pillar to post for grant of This daunting task was entrusted to the
licenses and approvals and had to deal with Department for Promotion of Industry and
multiple agencies for getting clearances. To get a Internal Trade (DPIIT) for being the institutional
case resolved in India would mean to endure the anchor for the Ease of Doing Business program.
punishing waiting periods and even winding up DPIIT acted as a fulcrum and brought in a cohesive
business operations was an uphill task. The approach by breaking the silos and working in
confidence of the international community in India networks with all the government agencies. A
was at an all time low. India’s dubious distinction of detailed gap assessment of business ecosystem,
being the hub of red tapism in addition to the spring cleaning of regulations, concerted efforts
confounding systems and regulations did not to bridge the digital divide alongwith regular
inspire investor confidence. stakeholder feedback to actively gauge reform
implementation at the ground level were the key
The World Bank conducts an annual assessment
reformative steps undertaken.
of 190 economies ranking them on how easy it is
do business in a country based on 10 parameters It bore fruit as India today ranks 63 in the World
which span over the business lifecycle, published Bank’s Doing Business Report 2020, a meteoric
as the Doing Business Report (DBR). India’s rise of 79 ranks from 142 in 2014. India’s increased
investment climate was mirrored in the World ease of doing business now provides a conducive
Bank’s Doing Business Report of 2014 (DBR 2015) business environment and DPIIT is committed to
where India stood at a grim 142nd position chartering the path of furthering this initiative; to
amongst 190 economies. translate it to ease of living for its citizens.

In 2014, under the visionary leadership of Hon’ble

 03

A PARADIGM SHIFT - SCALING GREATER HEIGHTS

There was a paradigm shift in the approach and developing India as a preferred investment
strategy of India, soon after Prime Minister Shri destination.
Narendra Modi, as part of the “Make in
India” initiative made a special
mention about the need to improve
India’s ranking in the World
Bank’s Doing Business Report.
EoDB took center stage as one of
the most important pillars along
with other programmes, towards

“Today, the focus is on service delivery, as much as it is on improving the business

environment. The result is in front of you. Between 2014 and 2019, India has improved
the Ease of Doing Business Ranking by 79 ranks. This time too we are one of the top 10
performers in the world. Every year we are rapidly improving a new parameter. Last year
we have been able to improve 6 out of 10 Indicators.”

Prime Minister Narendra Modi

The Global Investors' Meet 2019, Dharamshala (Himachal Pradesh)

To achieve the vision of Hon’ble Prime Minister of better understand the methodology and also
India being in the top 50 countries in the Doing study global best practices helped India in
Business rankings, systematic and targeted devising its strategy for improving business
efforts are being made to reduce the number of environment. A detailed roadmap was developed
processes, reduce average time taken, rationalize in consultation with Nodal Ministries and States
costs and making it easier to do business in India. for timely implementation of reforms. As a result,
Intense engagement with the World Bank to India’s rank improved to 63 in Doing Business
 04

Report 2020 (Published in October 2019) from 142 positions in the last five years [2014-19]. India
in Doing Business Report 2015 (Published in continues to maintain its first position among South
October 2014) As a result of continued efforts by Asian countries as compared to being at 6th position
the Government, India has improved its rank by 79 in 2014.

India’s Doing Business Rank

0

20

40
63
60 77
80
100
100

120 130 130

142
140

160
2014 2015 2016 2017 2018 2019

“This is the third year in a row “To be amongst the top 10

that India has made it to the improvers for the third year in a
top 10 (improvers) in doing row is commendable and speaks
business, a success that very volumes about the effort that the
few countries have done over government is putting in to
the 20 years of the project.” unshackle the economy"

Mr. Simeon Djankov, Mr. Adi Godrej,

Director, World Development Chairman, Godrej
Report 2019
 05

Simplifying Starting a

the Business
Business

Ecosystem Dealing with

Construction
Permits

in India Getting
Electricity

The World Bank’s Ease of Doing Business

Registering
Project is the key driver of regulatory reforms. It
Property
ranks 190 economies on ten parameters from
cradle to grave of a business cycle on a set
Getting
methodology which indicate how easy it is to do Credit

business in the country.

These parameters are Starting a Business, Protecting

Minority
Registering Property, Dealing with Construction Investors

Permits, Getting Electricity, Getting Credit,

Paying
Paying Taxes, Trading Across Borders, Taxes

Protecting Minority Investors, Enforcing

Contracts and Resolving Insolvency.
Trading
Across
Borders

Enforcing
Contracts

Resolving
Insolvency
06

STARTING A BUSINESS

Introduction of SPICe+ and AGILE PRO form by

Ministry of Corporate Affairs (MCA) saves time
and effort required for a nascent Company
Incorporation. This form combines various
services like PAN/TAN/Director Identification
Number/GSTN etc.

SPICe PLUS SPICE+ (Simplified Performa for Incorporating Company

Electronically (Plus) is an integrated Web Form

Ministry of Corporate Affairs

3 Central Government Ministry of Labour & Employment
Ministries & Departments
Spice Plus Offers Department of Revenue, under
10 Services By the Ministry of Finance

1 State Government Government of Maharashtra

Part A
Name reservation for new companies

Part B
Features of the
web Form: Incorporation, DIN allotment, Mandatory issue of PAN,
Mandatory issue of TAN, Mandatory issue of EPFO registration,
Mandatory issue of ESIC registration, Mandatory issue of Profession
Tax registration(Maharashtra), Mandatory Opening of Bank Account
for the Company and Allotment of GSTIN (if so applied for)
 07

DEALING WITH CONSTRUCTION PERMITS

India will now be counted among the top

nations in the world where it is easiest to
obtain all permits related to construction

Building Plan Approval

No Objection Certificates (NOC)

Completion certificates (Plinth and Building

Completion)

Application for Joint Site Inspection which

essentially stipulates all inspections with
regards to Fire, Water, Sewage, Environment,
Online Building Permission System (OBPS) is an Archeological etc. be conducted
online Single Window for obtaining all building simultaneously. This ensures transparency and
permissions. In Delhi and Mumbai, all relevant efficiency in obtaining the required No
agencies have been brought onboard this single Objection Certificates (NOC)
window system thereby eliminating requirement
Implementation of Risk Based Classification of
on the part of the applicant to engage with each
buildings helped in strengthening building
agency individually.
regulations considerably

2056 Urban Local Bodies across the country

have replicated this Online Building Permission
System

Defined Timelines
Joint Site Inspection
All procedures and permits are issued
All inspections of various agencies like Fire,
within defined timelines. Concept of
Water, Sewerage are carried out jointly on
deemed approval introduced in cases
the same day.
where permits are delayed

Online Single Window System Construction Online Certifications

Permits
An Online Single Window System for all NoCs and other certificates are issued
construction permits - Online Building through Online Building Permission System
Permission System
08

REGISTERING PROPERTY

Digitization of land records has been one of the top

priorities to bring efficiency and transparency in
property related transactions. It allows citizens to
view property transaction records in a digital mode.

Salient Features*
•You can access all the property maps on a
portal for free

•You can View & Download:

Obtain Property cards by clicking on the
property map
Detailed Plot Report can be seen just by
entering the plot number

Benefits of Digitized Cadastral Maps*

• No need to physically visit government
departments for obtaining maps

• Anytime, Anywhere access to maps

• No hassle of handling bulky hard copies

*Only Delhi & Mumbai

 09

ENFORCING CONTRACTS

Faster resolution of commercial disputes is pivotal to boost investor confidence in the dispute resolution
mechanism of the country. Dedicated Commercial Courts have been established in Delhi and Mumbai
dealing exclusively with commercial cases. Adoption of technology for case management by lawyers and
judicial officers is leading to speedier dispute resolution.
 10

RESOLVING INSOLVENCY

Introduction of Insolvency and Bankruptcy creditor is in charge rather than debtor in

Code of India (IBC) in 2016 was a game charge. The increase in recovery rate to 71 %
changer in resolving insolvency. The is evidence of its success. This law is evolving
objective of the Code is maximasiation of and once a long drawn and painful process, of
value of assets by aiming at reorganization closure of business is now a faster and more
rather than liquidation of the Corporate efficient process.
Debtor. The Code has seen success as the

“The Insolvency and Bankruptcy Code, financial

“Since its implementation, more than 2,000 companies
sector policies, and amendments to the
have used the new law. Of these, about 470 have
regulatory systems added immensely to the
commenced liquidation and more than 120 have
economic framework.”
approved reorganization plans…… Reorganization has
become the most likely procedure for viable companies
Mr. Vikram Kirloskar,
MD, Kirloskar Systems Ltd & VC, as measured by Doing Business, increasing the overall
Toyota Kirloskar Motor recovery rate from 27 to 72 cents on the dollar.”

DBR 2020
 11

TRADING ACROSS BORDERS

Time and cost to export and import has been considerably reduced by electronic sealing of containers,
upgradation of port infrastructure and allowing electronic submission of supporting documents with
digital signatures. Phase 1 of Fourth Container Terminal at the Jawaharlal Nehru Port Trust has been
made operational.

India Customs Electronic Gateway At present, about 43542 users are

(ICEGATE) allows traders the facility to registered with ICEGATE who are

lodge their clearance documents online serving about more than 12.5 lacs

at a single point importer/exporter.

Electronic filing of Bill of Entry

Shipping bill
E-payment of custom duty
ICEGATE offers a Web-based Common Signer utility for signing all the Customs Documents

host of services Facility to file online supporting documents through eSanchit

End-to-end electronic IGST Refund

24X7 helpdesk facility for its trading partners

e-payment of Central Excise and Service Tax
online registration for Intellectual Property Rights (IPR)
Document Tracking status at Customs Electronic Data Interchange (EDI)

In addition to e-filing, online verification of DEPB/DES/EPCG licenses

IE code status
ICEGATE also provides
PAN based Customs House Agent (CHA) data,
other services like IGST Refund Status and
links to other important websites/information related to EXIM Trade

“Integrated Risk Management System and Direct Port Delivery are some of the crucial
reforms undertaken by the Government”

Mr. Milon K Nag,

Co-Chairman, CII Task Force on EoDB
 12

ENGAGING THE STATES & UTs-

TOWARDS CO-OPERATIVE FEDERALISM

The Doing Business Report of the World Bank

assesses the cities of Delhi and Mumbai. To
emulate the reforms done at a pan India level, the Key highlights of Business Reform
Business Reform Action Plan(BRAP) was Action Plan (BRAP) 2020
introduced in 2014. DPIIT spearheads this
exercise which is driven to promote competitive
‘Investment enablers’ has been introduced
federalism, incentivising States and UT’s to have
as a specific reform indicator in the Action
the most conducive business regime. India is one
Plan to facilitate access to prospective
of the few countries which has a sub-national investors. This encompasses reforms
ranking exercise and under BRAP, all States and related to Action Plan, to facilitate access to
UT’s are ranked on the basis of reforms information for prospective investors.
Shipping bill
undertaken by them on designated parameters.
Single Window system enabled with
Spread across 15 reform areas and 301
dashboard has been included as a key reform
sub-reform points in its 2020 edition, it is a
area in the Action Plan. The envisaged
transformative programme which is now in its features of this single window system are
fifth edition. A dedicated online portal online submission of application, payment of
(www.eodb.dipp.gov.in) has been developed by application fee, tracking of application
DPIIT for States/UTs to submit evidences of status, download of the final signed
implementation of these reform points and user certificate & third-party verification, thereby
with the objective of eliminating all physical
data for feedback on reforms. It is the first such
interfaces.
platform for knowledge sharing on regulatory
compliance requirements and rankings across
Sectoral reforms have been introduced for
States/UTs in the country. Based on the global the first time in the Action Plan for 2020 and
best practices, assessment of reform sectors like Tourism, Telecom, Hospitality,
implementation under Business Reform Action Trade License, Healthcare, Legal Metrology,
Plan 2020 is 100% based on user feedback. Cinema Halls and Movie shooting are
studied for reforms to provide a holistic
Based on the global best practices, assessment of environment for investment.
reform implementation under Business Reform
Action Plan 2020 has been based 100% on user Central Inspection System (CIS) is one of the
feedback. Various Capacity Building Programs key areas covered by BRAP wherein the
are conducted for handholding States/UTs in this States/UTs are required to develop and
implement a CIS (integrated risk base shared
exercise of reform implementation. Best practices
inspection system) covering Labour,
by States are also shared with all States/UTs
Factories and Boilers, Legal Metrology and
encouraging similar transformations and versions State Pollution Control Board.
across reform sub-areas.
 13

SIGNIFICANT ACHIEVEMENTS AT STATE LEVEL

10 different countries were studied.

States/UTs have implemented a GIS system to

provide details about the land earmarked for
industrial use across the State.
States/UTs have reduced the number of
documents required for Obtaining Electricity
connection to only 2.
Generating global interest, countries like
South Africa, Nigeria and Brazil have shown
keen interest in replicating India’s Business
DPIIT has undertaken the mandate of enacting
Reform Action Plan (BRAP) model.
the Public Service Delivery Guarantee Act to
ensure timely processing, ensuring the setting up
of a single window agency to serve as a single
point of contact for all licensing required by
businesses, mandating joint inspection under 10
labour Acts, etc.

Extensive work was done to streamline

inspections and set the nation free from
‘inspector raj,’ for which best practices across
 14

WAY FORWARD

The Ease of Doing Business rankings are a

yardstick to measure the improvement in the
realm of Government reforms and is an integral
I say this with full confidence-
part of the AtmaNirbhar Bharat Abhiyaan. The
Government of India is determined to put in place
this is the best time to be in
an investment friendly ecosystem that strongly India! In today’s India, many
supports domestic as well as foreign investments. things are rising and many are
To translate this vision into reality, the next falling. ‘Ease of Doing
generation of reforms are focused on reducing Business’ is rising and so is
compliance burden for businesses and citizens.
‘Ease of Living.
Many compliance requirements have become
irrelevant and unnecessary with changing times
and technological development. In line with the
same, a time bound systematic exercise across Shri Narendra Modi,
Ministries and States is being coordinated by Prime Minister of India
DPIIT. This exercise is aimed at simplification and
rationalisation of compliances, decriminalisation
of minor civil offences and removal of redundant
laws. The endeavour is that the Citizens interface
This prodigious vision of the Honourable Prime
with the Government should be a pleasant
Minister to achieve the unthinkable, has been
experience
possible with his staunch belief in “Governance”
DPIIT has been an agent of change since 2014, instead of “Government”. The unflinching
improving the business ecosystem by commitment of the Government of India to initiate
collaborating with various ministries, States, change from the apex level to the ground level has
Sectors and Industry associations for reform yielded results. However, there are still leaps and
implementation under the Ease of Doing Business bounds to grow. Together with political and
Project and Business Reform Action Plan. The administrative will, and an endeavor to move
Honourable Prime Minister’s mantra of closer to international best practices, the
“Minimum Government Maximum Governance” Government of India is committed in translating
has secured India’s place in the international the ease of doing business to the ease of living for
community as a top business destination. every citizen of this country.
EASE OF
DOING
BUSINESS