NITI Aayog has relesed the Ease of Doing Business report based on an Enterprise Survey of 3,500 manufacturing firms across Indian states and union territories. The survey was conducted to assess the business regulations and enabling environment across India from firms’ perspective.
The major findings of this report are as follows:
Economic Performance and Reforms: higher level of economic activity and better performance on a range of doing business indicators are strongly correlated. Enterprises in high-growth states do not report major or very severe obstacles in: land/ construction related approvals; environmental approvals and water and sanitation availability relative to enterprises in low-growth states.
Approval time: Newer and younger firms have reported a more favourable business environment in that they take less time in obtaining approvals than older firms. Newer firms include startups established after 2014.
Informational gaps: States need to enhance awareness of the steps being undertaken by them to the improve ease of doing business. There is very low awareness among enterprises about single window systems, instituted by states.
Labor regulations: are a big constraint for labor intensive firms. 19% more likely to report that finding skilled workers is a major or very severe obstacle.
Barriers to firm growth: large firms face more regulatory barriers than smaller firms.