Ease of Doing Business The number of states that have successfully completed the reforms has increased to 20. 5 more states Arunachal Pradesh, Chhattisgarh, Goa, Meghalaya and Tripura have completed the ‘Ease of Doing Business’ reforms set by the Department of Expenditure. States that are completing this system are eligible for an additional loan of 0.25 per cent of the state gross domestic product (GSDP). On receiving the recommendation from the Department for Promotion of Industry and Internal Trade (DPIIT), the Department of Expenditure has allowed these 20 states to raise Rs 39,521 crore from the open market.
What is the Ease of Doing Business Ease of doing business is a kind of index. In this, many types of scales have been kept for ease of doing business. These include labor regulation, online single window, access to information, transparency, etc. DPIIT prepares it in the country.
The ease of doing business is an important indicator of an investment-friendly business environment in the country. Improvements in ease of doing business will enable the state to accelerate the future progress of the economy. Therefore, in May 2020, the Government of India decided that the reforming states would be provided with the facility to raise additional loans to help ease of doing business.
In view of the resource requirements to meet the challenges arising during the COVID-19 epidemic, the Government of India on 17 May 2020 raised the borrowing limit of the states to 2 per cent of their GSDP. Half the amount of this special legislation was related to citizen-centric reforms undertaken by the states. Four citizen-centric areas were identified for reforms, which are as follows:
- Implementing one nation one ration card system
- Ease and Doing Business Reform
- Urban Local Body / Utility Improvement
- Energy Sector Reforms
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