Update: The business can not be setup in 4 days in India. This facility has now opened and working.
The Department of Industrial Policy and promotion (DIPP) aims to facilitate opening of new business in four days by March this year. Through digitisation and streamlining of application process, single window clearances, the government plans to facilitate starting of any new business in 4 days from the current average of 26 days.
Mumbai and Delhi would be the testing ground for World Bank’s “Ease of Doing Business” in the country. The latest ranking for India is 131 of the 189 countries surveyed. It plans to improve the ranking considerably through these measures by March and also improve the procedures in other cities subsequently.
Currently, there are 14 procedures for starting a business in Mumbai and 12 in Delhi, down from an average of 29 only two years earlier. Among these, the maximum time is taken by two procedures—registering the company name online with the registrar of companies and registering for medical insurance at the regional office of the Employees State Insurance Corporation. While all other procedures have been put online and departments in-charge told to maintain efficiency, these two will specifically be targeted by DIPP.
The government wants to have an impressive ranking in the current year’s report and Prime Minister Modi’s stated aim is to push India among the top 50 nations by the time 2018 comes out. This would mean that India has to try to move 80 notches up in the “Ease of Doing Business” report.
Will that be possible? While the officials contend that it is possible as the targets are being achieved with key ministries being made responsible for delivering on various parameters, but various experts feel that a lot of coordination and synergy between the central, state and municipal agencies is needed.