The Economic Survey 2020-21 was presented in the Parliament today by the Union Minister for Finance and Corporate Affairs Nirmala Sitharaman.
The Economic Survey has called for simplification of regulatory processes in the light of uncertainties in the real world scenarios.
The Survey states that administrative processes in India are often loaded with significant amount of procedural delays and other regulatory complexities in decision making process making them inefficient for all stake holders.
International comparisons show that the problems of India’s administrative processes derive less from lack of compliance to process or regulatory standards, but from over-regulation.
The evidence shows that India over-regulates the economy. This results in regulations being ineffective even with relatively good compliance with process.
This is illustrated by a study of the time and procedures needed to voluntarily close a company in India. Even when there is no dispute and all paperwork is complete, it takes 1570 days to be stuck off from the records.
The solution, the Economic Survey says, is to have simple regulations combined with transparent decision-making process.
The Economic Survey notes that where ever such regulatory processes have been simplified, Ease of Doing Business has improved significantly.
