CII Proposes 10-Point Agenda for Ease of Doing Business Reforms Ahead of Budget

In a move to further enhance the ease of doing business in India, the Confederation of Indian Industry (CII) has proposed a robust 10-point agenda aimed at driving significant reforms. With the upcoming Budget in focus, CII's agenda seeks to streamline regulatory frameworks, reduce the compliance burden, and improve transparency, ultimately ensuring that businesses can operate more efficiently. These reforms are designed to support India's long-term economic growth and competitiveness.

Key Proposals in the CII’s 10-Point Agenda

1. Mandatory Regulatory Approvals through National Single Window System

Confederation of Indian Industry (CII) has highlighted the need for all regulatory approvals—spanning central, state, and local levels—to be mandatorily provided through the National Single Window System (NSWS). This will simplify the approval process, ensuring businesses receive timely responses while reducing bureaucratic hurdles.

2. Expediting Dispute Resolution

The CII has urged for improvements in dispute resolution mechanisms, recommending the strengthening of court capacities and greater reliance on alternative dispute resolution (ADR) methods. This would help expedite the settlement of disputes, facilitating smoother business operations.

3. Unified Environmental Compliance Framework

To address the complex environmental regulations, CII has called for the introduction of a unified framework that consolidates all environmental compliance requirements into a single document. This will make it easier for businesses to understand and adhere to environmental standards.

4. Improving Access to Land

Recognizing that access to land is critical for business growth, CII has recommended that states develop an integrated online land authority. This platform will streamline land banks, digitize land records, and provide information on disputed land, making land acquisition easier for businesses.

5. National Industrial Land Bank

The CII also proposes the creation of a National Industrial Land Bank (IILB), which will provide a centralized resource of land information from across the nation. The IILB could be supported with dedicated central budget funds to assist industries in acquiring land for expansion.

Continuing Momentum in Ease of Doing Business

While India has made significant strides in improving its ease of doing business over the past decade, CII stresses that the momentum needs to be maintained, particularly in areas that still require attention. CII Director General, Chandrajit Banerjee, emphasized the importance of simplifying regulatory frameworks, reducing compliance burdens, and enhancing transparency.

He stated, "Compliances for industry related to various areas such as land, labour, dispute resolution, paying taxes, and environment offer a vast scope for reduction, vital for boosting competitiveness, driving economic growth, and employment generation."

6. Statutory Obligation for Time-bound Service Delivery

CII recommends that an Act be passed to ensure time-bound delivery of services by public authorities. This would impose a statutory obligation on ministries and agencies to process applications and address grievances promptly. The proposed law could also include provisions for deemed approval if timelines are exceeded.

7. Expansion of National Judicial Data Grid (NJDG)

To reduce the pendency of cases across the judicial system, CII proposes that the scope of the National Judicial Data Grid (NJDG) be expanded to include data from tribunals. Tribunals account for a substantial portion of the pending cases, and including them in the NJDG would enhance the overall efficiency of the judicial system.

8. Streamlining Labour Compliance

Labour compliance remains a challenge, especially with the implementation of the four new labour codes. CII has called for the expansion of the Shram Suvidha Portal, which currently facilitates compliance with a few central Acts, to function as a centralized portal for all central and state labour laws.

9. Enhancing Trade Facilitation

CII recommends improving the Authorized Economic Operator (AEO) programme, which offers priority clearances to businesses. By making this programme more accessible and attractive, India can further ease trade and boost international commerce.

10. Minimizing Tax Dispute Pendency

Finally, CII has raised concerns about the high and increasing pendency of tax disputes, particularly within the income tax system. To address this, CII advocates for measures to clear backlogs at the Commissioner of Income Tax (Appeals) and enhance the effectiveness of alternative dispute resolution (ADR) mechanisms, including Advance Pricing Agreements and Dispute Resolution Schemes.

Conclusion: Strengthening the Business Ecosystem for Future Growth

The proposed 10-point agenda by CII highlights critical areas for reform that can significantly enhance India’s business environment. From simplifying compliance processes and improving dispute resolution mechanisms to addressing land acquisition challenges, these measures are designed to foster a more competitive and transparent business ecosystem.

By prioritizing these reforms, India can position itself as a leader in global business, driving sustained economic growth and job creation. As we look toward the upcoming Budget, these recommendations offer a clear path for continued progress in the ease of doing business.