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Updated January 28th, 2024 at 15:32 IST

PHDCCI urges focus on 'Ease of Doing Business' in Union Budget 2024-25 for economic competitiveness

Addressing cost aspect of doing business, the Chamber recommends a focus on reducing costs at factory level, including capital, power, logistics, land and more.

Business Desk
Ease of Doing Business reforms
Ease of Doing Business reforms | Image:Freepik
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Budget 2024-25: The PHD Chamber of Commerce and Industry has presented a set of recommendations for the Union Budget 2024-25, with a major emphasis on enhancing the "Ease of Doing Business" in India. Recognising the country's remarkable rise in the World Bank's Ease of Doing Business Ranking, the Chamber advocates for continued efforts to make India a more attractive destination for investments and business setups.

India's ascent in the Ease of Doing Business Ranking, from 142nd in 2014 to 63rd in 2019, reflects significant improvements. However, the PHD Chamber acknowledges the need for further enhancements, particularly in tier 2 cities, SMART Cities, internal parts of the country, and rural areas.

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The recommendations stress the importance of creating a unified platform for businesses to interact horizontally and vertically, promoting intra-industry and inter-industry trade. While digital platforms like the National Single Window System (NSWS) offer benefits, the Chamber suggests targeted efforts to ensure broader penetration, especially in areas where internet access may be limited.

One key concern highlighted is the need for rigorous national information dissemination about available benefits, particularly for MSMEs. The Chamber suggests leveraging small finance banks and nationalised banks as agents in remote areas to facilitate businesses' access to benefits and ease of doing business.

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Addressing the cost aspect of doing business, the Chamber recommends a focus on reducing costs at the factory level, including capital, power, logistics, land, labour, and compliance costs. Specific recommendations include transmitting the full effect of the status quo in repo rates and lending rates to reduce the cost of capital, addressing high power charges, simplifying land acquisition procedures, improving export logistics infrastructure, and simplifying regulatory compliances.

The Chamber also emphasises the importance of reducing the overall cost of doing business to enhance the competitiveness of Indian industries and exporters. Suggestions include a reduction in the cost of logistics, improving the availability of skilled labor, and simplifying compliance procedures.

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As India aims to boost economic competitiveness and attract more investments, the PHD Chamber's recommendations in facilitating the "Ease of Doing Business" could play a crucial role in shaping the economic landscape in the coming fiscal year.

 

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Published January 28th, 2024 at 15:32 IST

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