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'Ease of doing business hasn't improved in India'

Press Trust of India  |  New Delhi 

India's ease of doing business scenario hasn't improved as rampant corruption still exists at lower levels and the needs to "walk its talk" in implementation of policies, Anil Khaitan, president of PHD Chamber of Commerce and Industry today said.

"There is only talking talking, but no walking, walking. So unless the learns to walk its talk, it will be a gross failure. Policies can be announced, but policies announced and not implemented, are dead policies," Khaitan said.

He also said it will take at least another 14 months for businesses to tide over the negative impact of

In an interview to PTI, Khaitan said that corruption does not exist now in the top echelons of the government, but it is "widespread" at the bottom of the pyramid, hurting the country's ease of doing business scenario.

When asked if the country's scenario of doing business has actually improved with climbing 30 places to rank 100th on the World Bank's Doing Business Report, Khaitan retorted: "No I don't think so".

"... When you talk to builders, it is still the same... corruption has doubled because now in the top there is no corruption in the government, so now they very conveniently say, the junior officers, that why don't you go to the Prime Minister and get the work done, if you are being so aggressive about not being corrupt," he said.

He asserted that India's GDP growth rate will remain between 5.7 per cent - 5.9 per cent in the September quarter and 6 per cent - 6.5 per cent in the entire fiscal, as investment by the private sector remains sluggish, while the growth in exports remains below par.

"I only expect to show a robust growth in the January-March quarter of 2019," the chief of PHD Chamber said.

Khaitan believes that the private investment cycle "will be in top gear" from January-March 2019, supported by a GDP growth rate of 7.5 per cent.

On demonetisation, announced by Prime Minister nearly a year ago on November 8, 2016, he said, "It would have been a good move in my opinion had the said that by March 31 we will take out the Rs 500 and Rs 1,000 note and they will cease to be a legal tender from April 1, 2017.

"From today, we are stopping printing of 500 and 1,000 rupee notes. Anybody declaring Rs 500 and Rs 1,000 notes will be taxed at a flat rate of 25 per cent. That way blackmoney would have definitely come out, government would have got tax which they never got."

He labelled GST as an "excellent tax", while stressing that while it is a very good reform, the government has to simplify it further for businesses.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, November 15 2017. 17:07 IST