Dr. M. K. Bhat
In my previous article in this news paper I had expressed my apprehensions about the success of make in India campaign due to our low ease at doing business but the recent moves to reform the economy in the form of curtailing the time for registering a business from 27 days to a single day, single registration for all labor laws, no inspection of low risk business, uniform policy and procedure for all States, reduction in number of taxes, on line payment, speedy implementation of direct tax code and GST, abolishing of Minimum Alternative Tax in Special economic zones , streamlining of building laws at national and state level, removal of pollution control certificates for power connection have instilled confidence in me to overcome these apprehensions. It now seems that the Government means business not rhetoric. The time bound mood to make the country investment friendly by the department of industrial policy and promotion is laudable. Although Rome cannot be built in 180 days but the old saying that well begin is half done needs to be appreciated. It seems that Narendra Modi is not going to repeat the mistake of earlier NDA Government which resorted to reforms at a late stage, therefore failed to reap the benefits of their acts which were reaped by UPA in its first term.
The congenial business environment can only help to raise the production sector from its present low level and may thereby create jobs. It will lure both the domestic and foreign investors to invest. India’s ranking is stable at present as per Standard and Poors that means one step ahead of being negative. The recent deregulation of diesel is likely to improve it further as it will reduce the burden of subsidy to a great extent and may thereby go a long way in consolidating the fiscal position of the country. The improvement in perception can help a lot in attracting foreign investment. It may not be out of way to mention here that India’s rank in ease at investment is much worse than its neighbors like China, Pakistan, Sri Lanka or even Bangladesh. India ranks 134 out of 189 nations in the ease at doing business as per World Bank. Governments decisive mood , curtailing redtapism , consolidate banking ,opening of insurance and defense sector ,besides these attempts to bring more transparency and responsive administration is by no means a less achievement . It is a direct indication to investors to come and make in India. Although inflation cap on insurance sector, land acquisition and direct cash transfer are still problems to reckon immediately .
Shrum Suvidha portal launched by Prime Minister will make it easy for the firms to comply 16 labour laws through a single compliance report .The firms can register on this portal. This will go a long way in saving the time and energy of the entrepreneurs.
The Government can help manufacturing sector a lot, if it leaves the colonial habit of suspecting its own business people. There is a need of trust between the corporate and Government. The PM has trusted the corporate by putting the onus of compliance with the citizens who may have to self certify their reports, this in other words will be a step towards minimum Government and maximum governance.
The cumbersome inspector raj was a big threat to small business houses in particular. These inspectors often worked law unto themselves. The business houses were compelled to convince them in their language .The Prime Ministers hint at curtailing this exercise is expected to give much relief to the small and medium industries. The inspectors may not be now free to decide the firm to inspect on their own rather they will be guided on a random computer generated basis and they may have to upload their information within 72 hours which will not be liable to change afterwards .This will lead to transparency and may reduce the chances of tampering. In 2012-13; 30,466 inspections were carried and 259451 irregularities were found. The Prime Minister’s plan may encompass only 1800 inspectors of the Central Government so much will depend on states too. The change in the mindset from blue collar jobs to manual work is again a good beginning. The Government is trying to bridge the Gap of skill development .It may however be conveyed that vocationalization of education can only fill the gap of scarce skill development in the country.
The ease to entrepreneurs for more investment has been smartly balanced by providing certain facilities to the workforce in the form of smart card which will entitle a big informal sector workforce and 30million migrant workers in India who are on a constant move; to EPF facility which until now were availed by workforce of the organised sector only. This is for the first time that serious efforts are on the way for the unorganized sector which comprises 93% of the total workforce in the country. They have no voice and are least protected by law, no job / social security, illiteracy and low wage rate is their main feature. Ministry of labor government of India has categorized these workforce into four categories 1) on the bases of occupation like landless farmers, fisherman, weavers, kiln workers, saw mill workers and those engaged in animal husbandry etc 2) in terms of nature of job like migrant workers, contract and casual workers, attached agriculture workers etc 3) In terms of socially distressed like scavengers , loaders ,head load carriers etc 4) In terms of service category like midwives, domestic workers, barbers, fruit sellers, newspaper vendors etc. They contribute 50 percent of GDP as per National commission on enterprises in the unorganized sector. Labor being in the concurrent list much will depend on the States too, as they are more involved in the enforcement.
The Ministry of labour also plans to converge three schemes for labours namely Rashtriya Swasthay Yojna, Aam Adami Bima Yojna and Indira Gandhi National old pension scheme. Among these the Rashtriya Swasthay Bima Yojna which insures families of unorganized sector workers for upto Rs 30, 000 of medical cover is expected to be transferred from ministry of labor to ministry of health. These schemes will be linked to a smart card and will have a single point of contact for service delivery.
It is an irony that despite 67 years of our independence the major chunk of workforce is yet away from any social security which their brethren in organized sector are enjoying from decades. It is due to this people are eager for organized jobs rather than to work in the unorganized sector. As per the survey of National sample survey organization 2009-10 the total employment in both the organized and unorganized sector in the country was of the order of 46.5 crore comprising 2.8 crore in organized sector and 43.7 crore in the unorganized sector and out of 43.7 crore ; 24.6 crore workers are employed in agriculture alone ,4.4 crore in construction and the remaining in manufacturing and service sector. It may be worthwhile to mention here that no integrated economic development in India is possible without taking these workers in due consideration.
At the end, it may be held that if the Government continues its efforts at the current speed then Achay Din will be around for all of us.
(The author is Deputy Director (MAIMS) Guru Gobind Singh Indiraprastha University Delhi)
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