NITI Aayog Lunches Ease of Doing Business Report: an Enterprise Survey of Indian States (Download PDF)

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NITI Aayog launched Ease of Doing Business report based on an Enterprise Survey of 3, 500 manufacturing firms across India. Survey assesses the business regulations and enabling environment across India from firms’ perspective.

Image of Ease of Doing Business Index

Image of Ease of Doing Business Index

Image of Ease of Doing Business Index

  • The survey underscores the need for environment fostering globally competitive firms, capable of driving and sustaining economic growth providing employment to 100s of youth looking for jobs.

Important Findings of the Ease of Doing Business Report

Economic Performance and Reforms

Large correlation between economic activity and better performance on a range of doing business indicators with enterprises in high-growth states less likely to report major or very severe obstacles in

  • Land and construction related approvals

  • Environmental approvals

  • Water and sanitation availability relative to enterprises in low-growth states.

Availability of Power

Firms located in high-growth states report 25 % less power shortages in a typical month, compared to firms in low-growth states.

Improvements over Time

Newer firms report more favorable business environment and taking less time in obtaining approvals, suggesting improvement in the business environment.

  • Newer firms include startups established after 2014.

  • Young firms report that most regulatory processes do not constitute a major obstacle to their doing business.

Informational Gaps

With survey data showing low awareness among enterprises about single window systems, states need to enhance awareness of the steps undertaken to the improve ease of doing business

  • On average, only 20 % of young start-ups, report using single window facilities introduced by state governments.

  • Even among experts, only 41 % have knowledge of their existence

Labor Regulations

Labor regulations bigger constraint for labor-intensive firms with labor-intensive sectors feeling constrained by labor related regulations for creating more jobs per unit of capital investment. Compared to other enterprises, enterprises in labor-intensive sectors is:

  • 19 % more likely to face difficulty in finding skilled workers.

  • 33 % more likely to face difficulty in hiring contract labor.

  • Lose a greater number of days due to strikes and lockouts.

  • Report higher average time for environmental approvals and longer power shortages.

Barriers to Growth

Firms with large number of employers face more regulatory barriers than smaller firms:

  • Firms with more than 100 employees took significantly longer to get necessary approvals than smaller firms with less than 10 employees.

  • Large firms likely to report regulatory obstacles as major impediment and higher costs for getting approvals.

- Published/Last Modified on: September 23, 2017

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