The investor sentiment in Karnataka seems to have taken a big hit and industry players are perturbed.
As the State’s ranking in the latest ‘Ease of Doing Business Survey-2019’ has steeply fallen, from 8th to 17th position, the industry body KASSIA has expressed its concern and deep displeasure.
The survey, based on the user feedback, is seen as a huge setback for the State that is making all efforts to woo domestic and global firms through reforms, as per the trade body. In the last few months, Karnataka fast-tracked efforts to attract investors, including measures like amendments to the Land Reforms Act and Karnataka Industrial (Facilitation) Act.
“The steep fall of Karnataka in the Ease of Doing Business rank to 17 is quite disappointing to say the least, though not a surprise as matters stand,” said K.B. Arasappa, president, KASSIA, in a statement.
KASSIA has consistently maintained that industries in the State have had to battle bureaucratic red tape perennially affecting morale and investments.
Though there are schemes and instruments on paper, these never translate into actions, he added. For example, the single window agencies in the districts never meet regularly and often not meet for months which deprives entrepreneurs’ avenues for effective redressal leaving problems unresolved, he added.
“Moreover, the single window is ineffective as you face multiple clearances after application for new projects which lack meaningful coordination and follow up among the agencies. The promised online systems or deemed clearances are merely touted and never put into practice, leaving the entrepreneur high and dry,” Mr. Arasappa further added.
‘Review the systems’
KASSIA, therefore, would like to strongly urge the government to review and revamp the systems thoroughly by stipulating time-bound schedules and effecting deemed clearance as per Sakala, hand-hold officers accountable for delays, said the trade body.
There is a need to realise that investors now have choices and the State will further lose if corrections are not made quickly, it cautioned.