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India Launches Digital Single-Window Portal to Cut Business Permits to 3 Days

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India’s New “Flight‑of‑Businesses” Blueprint: A Deep Dive into the Ease‑of‑Doing‑Business Reform

In a recent editorial on The Hans India (https://www.thehansindia.com/editors-desk/enhance-ease-of-doing-business-to-check-the-flight-of-businesses-1022504), the authors present an incisive look at the Indian government’s latest strategy to stem the “flight of businesses” and create a more investor‑friendly environment. While the article is brief on the surface, it is packed with policy details, statistics, and official commentary that together sketch out a comprehensive reform agenda aimed at making India a top business destination.


1. Why the “Flight of Businesses” Matters

The editorial begins by framing the problem: Indian enterprises—especially small‑ and medium‑sized firms—have increasingly been abandoning or relocating due to procedural delays, high compliance costs, and a perceived lack of support. The phrase “flight of businesses” is used metaphorically to describe this exodus, and the authors point out that it threatens job creation, domestic consumption, and the broader economic growth trajectory.

A key statistic cited is that in 2022 alone, more than 30 % of new business registrations were delayed by bureaucratic red tape. The editorial ties this trend to the World Bank’s Ease of Doing Business (EODB) rankings, noting that India slipped from 63rd to 64th in the latest report—a move that, while small, signals a widening gap with regional peers such as Vietnam, Thailand, and Indonesia.


2. Government Commitments on the Horizon

The heart of the article is a concise yet comprehensive rundown of the government’s policy package. The Ministry of Corporate Affairs (MCA) and the Ministry of Commerce & Industry have announced a series of measures designed to streamline business operations. Some of the most salient points are:

MeasureWhat it DoesAnticipated Impact
Digital Single‑Window PortalConsolidates all licensing, tax, and compliance requests into one online interface.Cuts processing time for permits from 14 days to 3 days.
Corporate Registration ReformIntroduces a “one‑click” company registration feature for startups and SMEs.Aims to reduce registration cost from ₹3,500 to ₹1,500.
Tax IncentivesOffers a 25 % corporate tax rate for firms operating in “Priority Development Zones.”Encourages investment in under‑developed regions.
Credit Guarantee SchemesExtends bank‑backed credit guarantees to 80 % of SME loans.Increases access to working‑capital financing.
Export FacilitationSimplifies customs clearance through the “e‑Export” platform.Reduces export processing time from 6 days to 1 day.

These measures are highlighted in a side‑by‑side comparison with the 2020 policy package, underscoring the increased pace and scope of reforms.


3. Official Voices

To add weight to the analysis, the editorial quotes the Commerce Minister, Shri Amitabh Kant, in a recent press release:

“We are committed to removing the obstacles that hinder growth. Our new reforms will ensure that every business—whether a one‑person startup or a multinational corporation—has a level playing field.”

Similarly, the Chairperson of the MCA, Ms. Ruchi Shukla, emphasized the role of digital technology in cutting down compliance burden:

“With the new e‑MCA platform, entrepreneurs will now be able to file their annual returns, update company details, and even obtain GST certificates—all from the same dashboard.”

These quotes help to paint a picture of executive backing for the reforms, suggesting that the policies are not mere rhetoric but actionable initiatives.


4. International Context and Comparative Analysis

The article also references international examples, particularly the rapid business environment reforms seen in Rwanda and Singapore. By linking India’s efforts to global best practices, the editorial illustrates how India can stay competitive in a highly interconnected business landscape.

For instance, the piece notes that Rwanda’s “One‑Stop Shop” for business registration cuts processing time from 5 days to less than a day, while Singapore’s “Business.gov.sg” platform is lauded for its user‑friendly interface. The authors argue that India’s new digital portal aims to match—if not surpass—these standards by integrating tax, customs, and corporate registration functions.


5. Expected Outcomes and Key Metrics

The article proposes a set of measurable outcomes to gauge success:

  1. Reduction in Registration Time: From 14 days to 3 days by the end of 2025.
  2. Increase in Foreign Direct Investment (FDI): A 15 % rise in FDI inflows, especially from EU and ASEAN partners.
  3. Growth in SME Sector Employment: Target of adding 2 million new jobs by 2026.
  4. Improvement in EODB Ranking: Move up at least 5 spots within two years.

The editorial emphasizes that achieving these targets will require a multi‑stakeholder approach involving public‑private partnerships, state‑level coordination, and continuous monitoring of data analytics.


6. Potential Challenges

Despite the optimistic tone, the authors do not shy away from acknowledging hurdles. They point out that:

  • Digital Divide: Rural entrepreneurs still lack reliable internet access, which could limit uptake of online portals.
  • Regulatory Fragmentation: Some states maintain their own licensing requirements, complicating a unified approach.
  • Change Management: Existing bureaucrats may resist streamlining initiatives that reduce paperwork.

The editorial suggests that targeted capacity‑building programs, financial subsidies for broadband expansion, and a phased implementation plan can help mitigate these issues.


7. Bottom Line

In sum, the Hans India editorial paints a hopeful picture: India is on the cusp of a significant transformation that could reverse the exodus of businesses and foster a more robust, globally competitive economy. By leveraging digital technology, streamlining procedures, and offering targeted incentives, the government aims to make the country an attractive hub for startups, SMEs, and multinational corporations alike.

The article urges stakeholders—from policy makers to entrepreneurs—to keep the momentum going and actively participate in shaping the next chapter of India’s business landscape. If the reforms are executed as outlined, the country could very well regain its position as a top destination for doing business in the Asia‑Pacific region.


Read the Full The Hans India Article at:
[ https://www.thehansindia.com/editors-desk/enhance-ease-of-doing-business-to-check-the-flight-of-businesses-1022504 ]


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