Improving ease of doing biz to positively impact employment generation even beyond UP’s borders.
Apex industry body ASSOCHAM has suggested the Uttar Pradesh (UP) government to improve the level and extent of digitisation of processes to ensure smooth operations in shorter timeframes which will minimise contact with government agencies and reduce scope for corruption.
“The UP government should conduct a detailed study using primary research methodologies to quantify total results of government initiatives in improving ease of doing business in the state,” suggested an ASSOCHAM-Thought Arbitrage Research Institute (TARI) study titled ‘Ease of doing business in Uttar Pradesh.’
“The administration should constantly monitor systems and processes of state machinery, revamp or discard outdated processes and set up new ones in keeping with modern business ethos,” recommended the study that was jointly released by ASSOCHAM secretary general, Mr D.S. Rawat and Ms Kshama Kaushik, director, TARI at a press conference in Lucknow today.
“UP being India’s most populous state, improving ease of doing business in the state will have a positive impact on employment even beyond its borders,” said Mr Rawat.
“Regulatory reforms and initiatives taken by UP government like setting up a single window system of Nivesh Mitra, online industrial grievance redressal mechanism, issuance of VAT registration certificate in a single day, e-stamping facility, self-certification for compliance with labour laws, e-sancharan system and others are steps in the right direction,” said Mr Rawat.
Uttar Pradesh holds enormous industrial potential, which is yet to be fully realised and considering that the state has set an average growth rate of 10 per cent in the gross state domestic product (GSDP) in the 12th Plan (2012-17), it needs to attract large scale investment in manufacturing, infrastructure and services sectors to generate more employment opportunities for its large working population.
“Improving regulatory framework for business is a key pre-requisite for increasing investment and thereby creating jobs, as such the role of state in ensuring ‘ease of doing business’ holds utmost importance for growth of manufacturing and services sector and generate employment,” suggested the ASSOCHAM-TARI study.
Though various industrial policies of the UP government provide concessions and incentives like stamp duty, entry tax exemptions, interest free loan, capital interest subsidy and others, however availing the same is often cumbersome and time taking involving many administrative processes and checks.
“The UP government may consider developing a standard checklist of documents and standard operating procedures (SOP) for entrepreneurs availing these incentives and publicise them through website and other channels to bring transparency and efficiency in processes,” recommended the study.
Besides, a clear timeframe may be established for completion of various process and granting approvals for availing these incentives.
ASSOCHAM has also suggested to integrate the system of providing incentives under industrial policies with single window system of Nivesh Mitra, where an entrepreneur can check application, make payments, track status of approvals and refunds/credits under schemes.
Considering that Nivesh Mitra does not facilitate entrepreneurs with a composite application form for all departments, the study has suggested the UP government to implement a composite application form.
Besides it should ensure that all no objection certificates (NOCs) required for setting up an industry in the state is received online and there is minimal manual intervention. It should also facilitate payment of fees of various departments online to get clearances.
The study has further suggested that single tax identification (ID) for an entrepreneur may be generated through the single window system of Nivesh Mitra for paying all taxes.
“Single tax ID will greatly facilitate the entrepreneurs with greater transparency and compliance who are subject to various taxes at a state level, including value added tax (VAT), central sales tax (CST), entry tax, entertainment tax and luxury tax,” it said.