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The government is looking to phase out the licensing requirement of businesses in an attempt to reach the top 50 in the World Bank’s “ease of doing business” ranking, according to a report by Business Standard.
According to the report, the Department for the Promotion of Industry and Internal Trade (DPIIT) has given a draft Cabinet note on a policy proposed for inter-ministerial consultation.
It will assess whether the licensing should be scrapped or replaced by a registration process. If licenses cannot be scrapped in some cases, the renewal obligation can be done away with, the draft suggested.
or start-ups, the draft states that the compliance burden needs to be capped to an hour a month. "Ministries would need to come out with a plan on how they would reduce the compliance burden in terms of cost and time," an official with the knowledge said to the paper.
Other measures in the draft suggest reforms for self-certification and random checks. This will work in cases where first-time violators will receive advisory while repeated violators may be penalised.
With the unemployment rate at a 45-year high and economy in a slump, this move may boost the business sentiment and create employment. It is also expected to increase Foreign Direct Investment (FDI) which fell for the first time in six years by one percent to $44.4 billion.
The union cabinet is likely to deliberate on the policy in July.