The false window

The Indian government and the World Bank undertook the Business Reform Action Plan (BRAP) in 2014 that was led by the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry. The BRAP went beyond Delhi and Mumbai and measured investor-friendliness efforts of all states and union territories. 

The exercise and its outcome are commendable. The 2017 report that has been released recently covers 372 recommendations, besides an innovative addition of taking feedback from industry and other stakeholders while measuring the performance. In the combined score, it is found that 15 states achieved over 90 per cent score. On the other hand, 18 states and UTs fell in the 'aspirer' category of less than 80 per cent score.

The northern region - Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Delhi and Union Territory of Chandigarh - have shown mixed results. Haryana emerged as the top achiever, moving from the 14th rank to the third spot in just two years. J&K did well to obtain a score of over 33 per cent from 0.30 per cent in 2016. Punjab's ranking, however, dropped, while Delhi and Chandigarh also performed below their scores in previous years. 

In general, these states have done well in terms of access to information and construction permit enablers. For industry, this has translated into visible improvements in business processes at the grassroots. This is reflected in the industry feedback where states received good scores from businesses. Haryana and Punjab registered over 60 per cent, affirming the positive experience of industry in these states. 

The key issue is instituting single-window systems that would enable online applications, payment, tracking and monitoring without physical contact. Haryana and Himachal Pradesh are the top performers in implementing this while other states can move faster on the issue. Another challenge in these states is availability of land and land allotment. 

In addition, an effective dispute resolution mechanism for resolving commercial disputes can be instituted. To strengthen judicial processes, these states must simplify the payment procedure for courts and process fees as well as strengthen the online court system with e-summons, e-payments etc. 

A transparent and accountable system for labour laws is required. Some priority areas include provision for self/third-party certification under the Boilers Act, 1923, and integration with the Central Shram Suvidha Portal. The Confederation of Indian Industry (CII) has been supporting the DIPP and states by identifying processes, providing industry perspectives and holding workshops to assist in the BRAP. It is commendable that the DIPP and the states/UTs are wholeheartedly targeting a better business environment, which will contribute greatly in generating employment.

The northern states enjoy a good base for agriculture, manufacturing and services. With better performance on the indicators of a single-window system, land availability, enforcing contracts and labour regulations, these states could reach even higher rates of growth. 

— The writer is Director General, Confederation of Indian Industry

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HARYANA

Overall score: 98.07%
Reform evidence score: 99.73%
Feedback score: 82.90%
Reforms implemented: 368/372 

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