NEW DELHI: Prime Minister Narendra Modi on Friday said his government aims to do away with more than 6,000 compliance requirements for businesses, both at the central and state level this year.
"Government believes that government interference in everything creates more problems rather than solutions. Therefore, self-regulation, self-attesting, self-certification are being emphasised," the prime minister said.
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"Our effort is to reduce more than 6,000 compliances this year both at the central and state level. We are going to take it seriously. We have to get rid of the requirement to fill up umpteen forms. Your suggestions are crucial regarding this," Modi told industry leaders while addressing a webinar on the Centre's Production-Linked Incentive scheme.
The Department for Promotion of Industry and Internal Trade (DPIIT) secretary Guruprasad Mohapatra had last year said that to reduce compliance burden and ensure better easing of doing business environment for companies operating in India, the government has started identifying redundant rules in state and central acts that can be removed. "We are very keen on improving compliance burden in the country. It is a major assignment given by the prime minister and Cabinet secretary is monitoring its progress," he said in July.
Mohapatra said the idea came during a meeting of prime minister with Marriott International president and chief executive officer Arne Sorenson who complained about complex regulations in starting and running a hotel in India.
Quoting a study by National Restaurants Association of India (NRAI), the Economic Survey FY20 had said to obtain a license from Delhi Police to open a restaurant, one needs 45 documents, far more than the number of documents required for a license to procure new arms (19) and major fireworks (12).
The Survey said a major challenge most companies face is the complex architecture of the Indian governance, including the density of legislation and statutory compliance requirements. "Manufacturing units have to conform with 6,796 compliance items, which is a tedious and time consuming task," it added.
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