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May tweak laws during Parliament session to aid businesses: Goyal
The Union government, in the Winter Session of the Parliament, is planning to tweak various laws that hinder the growth of economic activities and to boost its ease of doing business drive, Union commerce and industry minister Piyush Goyal said on Friday.
The Union government, in the Winter Session of the Parliament, is planning to tweak various laws that hinder the growth of economic activities and to boost its ease of doing business drive, Union commerce and industry minister Piyush Goyal said on Friday.
Addressing the 117the annual session of PHD Chamber of Commerce and Industry, Goyal urged industry leaders to expeditiously provide a list of such unnecessary impediments so that a comprehensive view on that matter could be taken before amending the laws.
“I would urge the chamber, and all of you to please give us feedback. And give it quickly, because in the Winter Session we are proposing to come out with a very holistic amendment to the laws related to businesses, to try and ease the burden and reduce compliances. We have already done about 30,000 action across the country to either eliminate or reduce the compliance burden… we wish to do much more,” he said.
Goyal said the government will continue its efforts of decriminalising unnecessary laws to end the harassment faced by businesses and reduce compliance burden. He said while the World Bank has abandoned its Ease of Doing Business ranking because of undue influence by one of India’s neighbours (in a reference to China) the Modi government will “continue to relentlessly pursue that agenda” through state rankings. “We continue to look at our internal processes,” he said, adding that businesses should not be working under any pressure.
In September 2021 the World Bank discontinued its Doing Business report which ranked countries on the relative ease of business operations after accusations of data manipulation.
Goyal said despite geopolitical upheavals, high inflation faced by the developed countries, the energy crisis in Europe, and global supply chain disruptions, India’s economic performance was relatively better than that of other countries, and it continued to be a “shining star” and the “fastest growing” economy. Though developed economies are witnessing a double-digit inflation, India’s inflation is relatively low at 7% (in August), which is still lower than pre-2014 levels, he said.
Due to this economic strength, several developed countries are eager to have a free trade agreement (FTA) with India, Goyal said, revealing that he held an FTA-related meeting with Canada earlier in the day. India is also negotiating an FTA with the UK and the EU. He asked industry leaders to have reciprocal relationship under FTAs, which should be a win-win for both the partners, and urged domestic industry to get out of a “protectionist mindset” to reap the benefits of these pacts.
Goyal said as part of democratising e-commerce, the government has already developed the Open Network for Digital Commerce (ONDC) and its beta testing has started in Bengaluru. The government is trying to democratize e-commerce so that smaller businesses in remote parts of the country can the enjoy benefits of digitisation. “This will open up new opportunities to many more entrepreneurs and startups,” Goyal said.
Pradeep Multani, chairman, Multani Pharmaceuticals Ltd and president of PHDCCI said: “With the rapidly changing global trade and investment dynamics, a more conducive policy environment for trade and industry would be crucial.”
