(Pic By Gireesh G.V.)

India needs to create employment on a gigantic scale. We have no choice but to create an environment in which millions of small enterprises bloom. However, only about 7 per cent of our workforce is employed in the organised sector. People in the unorganised sector have far lesser access to predictable incomes, healthcare, retirement benefits and education for their children. We need to redress this imbalance. To do so, we need to ensure that doing business in India is easy. Businesses have a right to speedy clearances and common-sense regulations as much as they are accountable for fair trade practices and ethical conduct.

The 2009 World Bank Group report on ‘Doing Business in India’ measured data for 17 Indian cities across different parameters including starting a business, dealing with construction permits, registering property, and closing a business, etc. The report confirmed what we always knew. The time, cost and complexity of doing business in India is way below international standards, and it deters people from starting companies.

The report highlights what we need to learn from each other. Best practices exist in various cities, which need to be shared and implemented across other cities. For example, it takes on an average 224 days in India to deal with construction permits. Hyderabad, on the other hand, takes only 80 days.

We need to increase touch points and use technology effectively. More number of sub-registrar offices has reduced the time taken to register a property in Jaipur from 17 days to two days, and better computerisation cut down the last procedure cycle from 28 to 15 days.

The government has taken many steps to address these challenges. These include implementation of ICEGATE (Indian Customs and Excise Gateway), MCA-21, Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act among others.

One such initiative was a result of the Cabinet Secretariat’s review to examine the procedures for investment approvals and implementation of projects in September 2001. This initiative resulted in the formulation of the ambitious eBiz project under the National eGovernance Action Plan, aiming to provide efficient, convenient, transparent and integrated electronics services to investors, industries and businesses.

We have seen the impact of computerisation and internet booking in the railways and also computerisation, internet, mobile phones and the spread of ATMs for banks.

Excessive and complicated regulations breed corruption, hamper productivity, deter people from opening companies, negatively impact job creation, and are a major drag on the economic growth. India can’t afford them.

The author is the chief executive officer and managing director of Infosys Technologies

(Businessworld Issue Dated 18-24 Aug 2009)