India
has recorded continuous improvement in its ease of doing business ranking
issued by the World Bank on account of steps taken by the government in this
regard including new Export Credit Insurance Scheme for exporters, National
Logistics Policy and Startup India Initiative among others.
India ranks 63rd among 190 countries improving
by 14 ranks from its rank of 77 in 2019 and has improved its rank in 7 out of
10 indicators and has moved closer to international best practices. The 2020
edition of the Report acknowledges India as one of the top 10 improvers, third
time in a row, with an improvement of 67 ranks in 3 years. It is also the
highest jump by any large country since 2011.
Startup India- reaching new heights, making
India a global leader in Innovation — A total of 21,778 startups are now
recognised under the Startup India Initiative, of which 2,912 of them have been
recognised since June 1, 2019. The Startup India Hub has 3,42,614 registered
users of which 21,540 have been added since June 1, 2019.With the amendment in
Section 54GB of Income Tax Act on August 1, 2019, the condition of minimum
holding of 50 per cent of share capital or voting rights in the startup has
been relaxed to 25 per cent.
India’s remarkable jump on the Global Innovation
Index — In the past four years India’s rank in the GII has improved from the
81st rank in 2015 to the present 52nd rank in GII 2019 report. India became the
first developing country to launch the GII in association with World
Intellectual Property Organisation (WIPO) and Confederation of India (CII).
In order to promote innovation, several measures
have been taken including Final Patent (amendment) Rules, 2019 – published on
September 17, 2019 amending The Patents Rules, 2003 has led to significant
simplification of rules, especially for startups and MSMEs. The Patent (Second
Amendment) Rules, 2019 were published to reduce fees for small entity or MSMEs
for processing of patent applications under various sections of the Patents
Act, 1970 will incentivise MSMEs to file for more parents. In order to promote
export, the Department of Commerce has undertaken various measures. Export
Credit Guarantee Corporation (ECGC) has introduced a new Export Credit
Insurance Scheme (ECIS) called ‘NIRVIK’ for exporters in which increased
insurance cover for export credit has been extended by banks from existing
average of 60 per cent to 90 per cent for both Principal and Interest.
Accounts with limits below Rs 80 crore, the
premium rates will be moderated to 0.60 per annum and for those exceeding Rs 80
crore, it will be 0.72 per annum for the same enhanced cover. It is expected
that the initiative will cost about Rs 1,700 cr per annum.
It will provide comfort to banks, bring down the
cost of credit due to capital relief, less provision requirement and liquidity
due to quick settlement of claims and will ensure timely and adequate working
capital and relief to MSMEs.
To enhance ease of doing business, Deemed Export
drawback has been allowed on All Industry Rate of drawback schedule. An online
portal for filing applications under ‘Transport and Marketing Assistance (TMA)’
scheme for Specified Agriculture Products has been launched.
Easing Exporters’ claims with ECGC through
transparency — A database has been prepared by ECGC for all pending claims and
online access on status of claims has been provided. This will be a critical
tool for providing information access to exporters. The online ”Origin
Management System” gives single access point for all exporters, for all Free
Trade Agreements (FTAs), Preferential Trade Agreements (PTAs) and for all
agencies. India has 15 FTAs/PTAs and 7 lakh ‘Certificates of Origin’ are issued
annually. The platform will be made live for FTAs as per the concurrence of the
concerned partner countries. This process is electronic, paperless and
transparent with real time tracking of FTA utilisation at product level and
country level. It will also lead to reduced transaction cost and time.
Scheme for Remission of Duties or Taxes on
Export Product (RoDTEP) formulated to replace existing Merchandise Exports from
India (MEIS) scheme. This will be a WTO compliant scheme for promotion of
exports. Textiles and all other sectors which currently enjoy incentives upto 2
per cent over MEIS will transit into RoDTEP from January1, 2020.
RoDTEP will span all sectors and the revenue
foregone will be about Rs 50,000 crore.
Infusion of funds for Export Support — A capital
of Rs 389 crore has been infused into Export Credit Guarantee Corporation
(ECGC) on June 2, 2019. This will provide extra support to exports to emerging
and challenging markets like Africa, CIS, Latin America and Asian countries.
A Grant-in-aid (corpus) of Rs 300 crore has been
contributed to National Export Insurance Account (NEIA) trust on June 21, 2019,
thereby, enhancing its risk taking capacity to support project exports in
challenging markets.
Boost to Gem and Jewellery exporters by
resolution of various issues like removal of the requirement of paying IGST on
re-import of goods which were exported earlier for exhibition
purpose/consignment basis.
Allowing partial discharge of bonds executed by
nominated agencies or banks for import of gold to be supplied to jewellery
exporters, thereby enabling nominated agencies to release bank guarantee of
jewellery exporters who have fulfilled their export obligation has helped in
release of blocked working capital.
National Logistics Policy, 2019 —
The National Logistics Policy is being prepared
with the aim to bring down total logistics cost from 14 per cent to 9 per cent
of country’s GDP. The policy aims to boost business competitiveness, drive
economic growth and make India a global logistics hub.
The Multi-Modal Transportation of Goods Bill,
2019 has been finalised for approval. This aims at facilitating the movement of
goods for exports, imports and domestic trade. It will help to fix
accountability and liabilities for violation of its provisions.
Skilling for Logistics Sector —
As many as 34 Qualification Packs (QPs) for
skill development of manpower engaged in Logistics Sector have been developed
and finalised in collaboration with Logistics Skill Council. This is the first
time that such qualification packs have been developed.
Implementation of Agriculture Export Policy —
The Agriculture Export Policy has been approved with an outlay of Rs 206 Crore
for 2019-20. In order to establish linkage between FPOs and the exporters a
portal has been created by Agricultural & Processed Food Products Export
Development Authority (APEDA). About 740 Farmers Producer Organisation (FPO)
have been registered under Farmers Connect Portal.
Schemes for backward regions —
Budgetary Support under GST Regime to the units located in Jammu and Kashmir,
Himachal Pradesh, Uttarakhand and North Eastern States including Sikkim has
been made. an amount of Rs 1,700 crore has been authorised by Department for
Promotion of Industry and Internal Trade (DPIIT) to Central Board of Indirect
Taxes and Customs (CBIC) for disbursement to eligible industrial units.
Rs 1,692 crore already been disbursed by CBIC
under the Scheme till November 15, 2019. During the last six months, Rs 86
crore was disbursed to 420 industrial units under the Special Package to the
Himalayan States.
Ensuring level playing field for domestic
industry and farmers — For antidumping the average number of days taken for
initiation of anti-dumping investigations has come down to 32 days in 2019
(upto November 1) as against 259 days in 2016. Directorate General of Trade
Remedies(DGTR) for the first time ever initiated two cases of bilateral
safeguards to protect domestic industry from injury. No bilateral safeguard has
ever been initiated in the past by DG Safeguards or Directorate General of
Anti-Dumping and Allied Duties.
There has been significant drop in the number of
days taken to initiate two cases of Global Safeguards. In 2019, the average
number of days taken is just 61, as compared the standard 75 days.
In order to ensure interests of the Indian
industry and farmers in FTAs, India successfully laid out its stand in Regional
Comprehensive Economic Partnership (RCEP) that India’s key concerns were not
addressed. India took a strong stance to protect the interest of domestic
producers. This decision will help vulnerable sectors including farmers and the
dairy sector as well as small manufacturers, who would have been threatened by
RCEP rules. India has also secured agreement for review of Association of
Southeast Asian Nations (ASEAN) FTA (Asean-India Free Trade Area-AIFTA) after
repeated follow up. This will help in removing rules that affect Indian
producers and exporters and will also promote Indian exports and Make in India.
Steel Import Monitoring System (SIMS) — The SIMS
will facilitate the Steel Industry by providing advance information about steel
imports to all stakeholders including Government, steel industry and steel
importers for effective policy interventions. Importers of specified steel
products will register in advance on the web portal of SIMS providing necessary
information. The registration will be online and automatic and no human
intervention is required. SIMS has been notified with effect from November 1,
2019. Trade Facilitation Measures —
The completion of negotiation of India-Mauritius
Comprehensive Economic Cooperation and Partnership Agreement (CECPA) will enable
trade promotion between the two countries. Improving Trade with Bangladesh –
Besides the four operational Border Haats across India-Bangladesh border in
Tripura and Meghalaya, construction of three Border Haats in Meghalaya, out of
six already identified locations (two in Tripura and four in Meghalaya) has
been completed. Merger of Council of Trade and Development and Board of Trade:
providing a common platform for addressing stakeholder concerns. This common
platform, comprising representatives from industry, export promotion councils,
Government of India and State Governments and representatives from Banking and
Finance Sector is playing a critical role in addressing export related
concerns, with a focus on addressing these on a priority basis.The first meeting
of this common platform took place on June 6, 2019. SEZ (Amendment) Bill 2019
became the first legislation of the newly formed Government to be passed by
Parliament.This will enable any entity to set up an unit in SEZs, including
Trusts. This will help boost investments and create new export and job
opportunities. Investments of USD 1.1 billion has been proposed since the
ordinance was promulgated earlier this year. Better facilities for employees:
SEZ units allowed to create facilities and amenities like cr?che, gymnasium,
cafeteria for their exclusive use as a measure towards ease of doing business.
Promoting Foreign Direct Investment —
Hundred per cent FDI has been allowed under
theautomatic route for coal mining activities including associated processing
infrastructure. Hundred per cent FDI under automatic route has also been
allowed in contract manufacturing. Providing more flexibility and ease of
operations to Single Brand Retail Trading (SBRT) entities. All procurements
made from India shall be counted towards local sourcing, whether goods are sold
in India or exported. Online retail trading permitted upto two years prior to
opening brick and mortar stores. Boost to Make in India in Government
Procurement — Progressive amendments have been made to favour local suppliers
like procurement upto Rs 50 lakh has been exclusively reserved for local
suppliers (except in certain cases). Only local suppliers eligible to bid for
procurement of items, where there is sufficient local capacity and local competition,
irrespective of purchase value. Bicycle Development Council constituted for the
benefit of Bicycle Industry — The Indian bicycle industry is the world’s second
largest bicycle industry. To develop the Bicycle industry and small part
manufacturers towards global standards, a Bicycle Development Council has been
constituted. National Institute of Design (Amendment) Act, 2019 — Amendment to
National Institute of Design (NID) Act was moved for consideration and passing
in the Rajya Sabha on August 6, 2019 to confer Institute of National Importance
status to the four new NIDs and ten passed also. It will be introduced in the
forthcoming session of the Lok Sabha for consideration and passing. The four
new NIDs at Andhra Pradesh, Madhya Pradesh, Assam and Haryana to be declared as
Institutions of National Importance on the lines of NID, Ahmedabad.NIDs, Madhya
Pradesh and NID, Assam have commenced academic session of 2019-20 from July 29,
2019. Establishment of the National Traders’ Welfare Board (July 26, 2019) — A
long-pending demand of traders has been fulfilled with the constitution of the
Board to understand the issues and problems faced by traders and employees in
their day to day business operations and for their welfare. The Board will have
a number of representatives from Traders’ Associations as members.
