Since the Modi government came into power in 2014, there has been a substantial impact on the growth of the country. Investments and business ventures have observed a sharp increase in the past years, which serves to be the introductory statement of the country’s future.
Veteran businessman Sanjay Dalmia expressed that the bold steps of the government in revising the economic policies have been instrumental in changing the perception of business leaders towards India.
The result of these reforms is visible as India jumped into the top 100 rankings of World Bank’s ‘Ease of Doing Business’ (EODB). While majority of people were attacking the move of Demonetization and introduction of GST, the rankings have revealed their positive impact on the country at a global scale.
“Every major change is subject to scrutiny until it shows results. I am happy that the economic policy changes have yielded fruitful results. This will send a global message that India is ready for greater business ventures and encourage companies to grab the opportunities,” says Sanjay Dalmia.
A substantial share of credit also goes to the increased fluidity in the operations of government systems. Common application for Permanent Account Number (PAN) and Tax Account Number (TAN) and early completion of Employee’s Provident Fund Organization (EPFO) applications are the shining examples. These modifications help save time required for the paperwork. Construction authorization has majorly improved and the ESIC applications have clocked in a better processing time in the past 3-4 years, which increases the confidence of investors as well as employees.
“Running a business was much more difficult 5 years ago,” says Sanjay Dalmia. “Recovery of debt has become easier due to the decrease of interest rates on hefty loans. Easy access to credit and decrease in the export-import border compliance costs has made a huge difference in business operations. Non-performing loans have been reduced by 28% since the introduction of debt recovery tribunals,” he added.
Annual evaluation reveals that India is amongst the top 10 countries who have shown substantial improvement in the tenure. This comes after the fact that the country has put 8 out of 10 reforms of ‘Doing Business’ indicators into practice. In a bid to achieve this feat, India has made immense improvement in multiple avenues like protecting minority investors, contract enforcement and resolving insolvency, etc.
Compared to the previous year’s improvement by just one position, India has jumped over 30 positions in the latest report. However, it is the need of the hour to address certain shortcoming avenues like starting a business and complications associated to it. It is safe to say that India is walking on the correct path, but maintaining this flight is going to be a test of the country’s mettle as well as potential in the upcoming time.