Title:
EASE OF DOING BUSINESS IN INDIA: THE EFFECTIVENESS OF RECENT INITIATIVES BY THE GOVERNMENT AND THE WAY AHEAD

Authors:
Dr. Amol Mane

Abstract:
Since 2014, India has embarked on a transformative journey to enhance the ease of doing business, implementing a series of reforms aimed at creating a more conducive environment for economic growth. This paper evaluates the effectiveness of these initiatives using secondary data from sources such as the World Bank, government reports, and industry studies. Key reforms, including the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code (IBC), and the Make in India initiative, are analyzed. The study, covering the period from 2014 to 2023, reveals significant improvements in various ease of doing business metrics. India's ranking in the World Bank’s Doing Business Index improved from 142 in 2014 to 63 in 2020, underscoring the effectiveness of the government's efforts. Notable achievements include a 50% reduction in the time to start a business, a 60% decrease in the cost of starting a business, and a 165% increase in Foreign Direct Investment (FDI) inflows. Despite these advances, challenges such as complex land acquisition processes and inconsistent regulation implementation across states persist. Recommendations emphasize further streamlining compliance processes, promoting digitization, decriminalizing minor offenses, and extending tax incentives. Strengthening innovation ecosystems, enhancing access to credit, and fostering sector-specific policies are also crucial. This study provides a comprehensive evaluation of India's business environment reforms, offering valuable insights for policymakers, investors, and businesses to sustain and build upon these improvements.

Keywords:
Ease of Doing Business, India, World Bank, GST, FDI.