New Delhi, July 25, 2017
The current ease of doing business (EODB) reforms focus only on easing permits but are not facilitating reforms on ground, experts opined.
Views were expressed at a round-table discussion on “Competitiveness and EODB” that reached to a conclusion here today. The discussion focused on the topic comparing India and the USA. “There is a considerable similarity in the federal structure of the United States and India where the different states have necessary powers to influence the business climate.
Learnings from the US could be beneficial for adopting necessary reforms,” Pradeep Singh Mehta, secretary general of CUTS International, said. Otherwise, EODB reforms would focus only on easing permits, he added. Shanthi Nataraj, Economist, RAND Corporation, the US said, “Policies that promote good business conditions coupled with financial incentives that promote competition and entrepreneurship are most likely to attract businesses and promote growth.”
Provision of critical public goods and services, flexibility in labour markets and private sector partnerships are key to the growth of MSMEs, she added. Nataraj said that improving labour laws, infrastructure, education etc will be more impactful and such an ecosystem will also benefit MSMEs. The round-table discussion was attended by participants from diverse sectors such as academia, MSMEs, consultants and former government officials.
[The Financial Express]