Question: Indian economy has shown prospects of growth but it needs improvement in way of doing business. What can be the measures to improve business environment in India?
Answer: India’s economy has in recent times been undergoing turmoil due to major slowdown in GDP percentage. But there are some signs of recovery which indicates some respite to policy makers. India still needs to make certain changes in business environment that can help in improvement.
Measures to improve business environment
- Improving law and order
Law and order situation plays an important role in developing the business structure in India. If law of the country is positive towards legal way of conducting business then it can motivate business community to set up new ventures and help in boosting the economy.
- Better financial environment
Financial sector of the country must be in pink of the health to support business environment. Financial markets can help in lending or any other financial services that acts as initiator of economic development in a country.
- Creation of demands
It is necessary that there is enough demand for products and services offered by the business in the country. This will ensure that the business venture reaps rewards and contribute towards growth of economy.
- Land laws
Land laws in India are tedious and very big impediment in setting up of new industries. A robust land law can surely help better improve our business structure and attract new investment from both domestic and international.
The Ease of Doing Business reports mentioned certain points which can be improved for better business environment. They include faster resolution of disputes, licenses and environment clearances that can get better results.
Thus, for economy to boost, industrial outputs must have to grow substantially. This can also be supported by positive measures from government like increasing public expenditure and reducing taxes.