Ministry of Corporate Affairs (MCA) has established a 20-member committee to
make recommendations to improve the regulatory environment for conducting
business in India. Some of the background to this effort is contained in the MCA’s
The report of The World Bank and the International Finance Corporation, entitled
“Doing Business 2012: Doing business in a very Transparent World”, India has
been ranked at a low of 132 amongst a sample of 183 countries. Although, there
is a seven – point improvement over 2010 ranking of 139. However, India
continues to lag behind even the BRIC and SAARC countries on most of the
Easing of business environment mandates extensive examination of regulations in
different areas of root functioning such as financial reforms, governance
reforms, liberalized policy framework, process reforms, etc.,. Thus there is a
need to conduct an in-depth study into the entire gamut of regulatory framework
and come out with a detailed roadmap for improving the climate of business in
India in a time bound manner. Such an exercise needs to be undertaken for
periodical improvement in the ranking, leading to a situation where India
gradually moves towards upward position with almost zero hassles.
committee is expected to hold consultations and invite opinions, and present a
report in six months.
Unsurprisingly, this comes close on the heels of
various concerns regarding policy paralysis and retrograde steps that have
resulted in India’s image waning as an investment destination. While this is likely
to assuage some of the concerns from a perception standpoint, it is not certain
if the consultation and recommendations could result in concrete measures given
that the terms of reference of the committee are somewhat wide and open-ended.