Saturday, August 25, 2012

Committee for Reforming the Regulatory Environment for Doing Business in India

The 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 office memorandum:
1. 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 parameters.
2. 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.
The 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.


Suyash Verma said...

very pertinent observation.but still it is a right step in the right direction.i feel that there is a serious need to reduce the trust deficit between the government and the people.these days, whatever the government tries to do, it is always discredited or belittled by the people.

DigitalAsian said...

One way forward is for more NRIs to enter into high level national politics in India who have different perceptions of transparency, which may very slowly change Indian culture and politics.

Himanshu said...

We company secretaries are torch bearers of Corporate Governance not only in India but world wide.....It is really surprising to know that not a single nominee from ICSI..As Corporate Governance is a Buzz word these days and undoubtedly Company Secretaries pays a pivotal role in promotiong corporate governance worldwide.

Himanshu Harbola

In-House Legal Counsel and Company Secretray

Anonymous said...

So they set up a 20 member committee to recommend regulatory reforms. The size of the committee says much, doesn't it? First recommendation is to cut down the size of the Govt and such committees!

Anonymous said...

Dear Mr. Harbola,

Promoter listens to the CFO and the CS has to listen to the Promoter and CFO both. That's the ground level reality.