The Ministry of Commerce and Industry in India recently launched the national single window system for investors and businesses. This significant move is aimed at improving the Ease of Doing Business (EoDB) by providing a seamless platform for multiple regulatory procedures. Despite being ranked 63rd out of 190 countries on the World Bank’s ease of doing business report in 2020, India continues to implement reforms aimed at improving its business environment.
National Single Window System: A Stepping Stone Towards Business Efficacy
The Department for Promotion of Industry and Internal Trade (DPIIT) and Invest India have jointly initiated the process of developing the portal termed as the National Single Window System (NSWS). This initiative offers a shared dashboard where businesses can apply for clearances, track progress, and respond to queries.
Invest India: The Frontline of Investor Engagement
Invest India serves as the National Investment Promotion and Facilitation Agency. It is the first point of reference for investors looking to explore opportunities within the country. The agency plays a pivotal role in encouraging and facilitating investment.
Features of NSWS: Advancing Transparency and Accountability
The key highlight of the NSWS is its ability to function as a “one-stop-shop” for both state and central government compliances. The objective of this feature is to promote transparency, accountability, and responsiveness in the system. The portal also includes a ‘Know Your Approvals’ service which provides businesses with information regarding the necessary approvals they need to obtain.
Supporting Other Schemes
The NSWS will also enhance other existing schemes such as Make in India, Startup India, the PLI scheme, and more by streamlining the regulatory requirements for businesses in these sectors.
Other Initiatives for Boosting EoDB: The Pro-Investment Drive
In the Union Budget speech of 2020, the Investment Clearance Cell (ICC) was announced. Designed to provide “end to end” facilitation to investors, the ICC offers pre-investment advisory services, information related to land banks, and clearance facilitation at both the Centre and State level.
Legislative Reforms: Making Business Simpler
There have also been amendments to the Insolvency and Bankruptcy Code (IBC) and decriminalisation under the Companies Act, 2013. These changes were implemented as part of a broader ease-of-doing-business strategy.
Taxation Reforms: Easing the Burden on Mid-Sized Companies
The government has reduced the corporate tax rate from 30% to 25% for mid-sized companies. This is a significant move towards improving the operating environment for such businesses.
Digital Initiatives: Promoting Paperless Processing
The Ministry of Corporate Affairs initiated the MCA21 project, which provides easy and secure access to MCA services. The Central Board of Indirect Taxes & Customs has launched eSanchit for paperless processing, uploading of supporting documents, and facilitating trade across borders. Furthermore, an e-assessment scheme has been introduced for taxpayers.
Last Modified: February 13, 2024