Doing Business in India Report, 2020
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UK Minister for Investment, has released UK India Business Council's 'Doing Business in India Report 2020' during his virtual visit to India.
- This report comes at a time where the UK and India have committed to an Enhanced Trade Partnership.
- About report
- The report is the UKIBC's sixth of an annual series dating back to 2015.
- This year's report is based on an in-depth survey of 106 UK organisations operating in India spanning manufacturing, services, and higher education sectors.
- India’s score of doing business has improved from 2.74 in 2019 22.9 to in 2020.
- According to the report, for the third consecutive Year Maharashtra emerged as the state with maximum incremental improvement. It was followed by Karnataka, Delhi, Gujarat and tamilnadu.
- UK businesses believe that India's business environment is improving, and they see an opportunity for greater UK-India collaboration notwithstanding Brexit.
- India's Atmanirbhar Bharat mission is seen by the UK firms as an opportunity to do more business in India, leveraging UK's innovation for manufacturing in India.
- The report says that 66% of the surveyed organisations believed that the ease of doing business in India is increasing.
- According to the report this change is mainly due to the progressive reforms and improvements in the business environment of India. The changes are predominantly found in availability of support, skilled labour, service providers and supply chain.
- India has surely made significant progress on ease of doing business, but regulatory uncertainty remains a significant challenge.
- Foreign exchange regulations, Goods and Services Tax (GST) process issues, high import tariffs, lack of alignment with international standards remain the top four regulatory irritants.
Suggestions/ Way forward
- The survey suggests that improving bureaucratic processes with greater accountability, increasing regulatory certainty, simplification of the GST processes, improving the quality of infrastructure and making single window clearance effective were the most sought-after reforms by UK businesses.