India: Beyond 'Ease' to 'Speed' in Business for Global Growth!
India: Beyond 'Ease' to 'Speed' in Business for Global Growth!
India needs speed! CII President R Mukundan calls for faster approvals, reduced litigation, and key reforms to accelerate growth. Learn how prioritizing "speed of doing business" can unlock India's global potential and a
Confederation of Indian Industry (CII) president and Tata Chemicals managing director R Mukundan has issued a strong call for India to shift its focus from merely "ease of doing business" to the more dynamic "speed of doing business." In a recent interaction, Mukundan emphasized that this crucial transition is vital for India to accelerate its economic growth and effectively attract global capital amidst a rapidly changing world.
Mukundan highlighted that the current global landscape, marked by significant geopolitical shifts, the pressing issue of climate change, and the lightning-fast advancements in artificial intelligence, demands that India maintain a sharp focus on domestic reforms. He firmly believes that while external disruptions are inevitable, internal reforms are India's best bet to capitalize on what he terms a "once-in-a-generation opportunity." "We are not just talking about ease and cost of doing business. We also need speed of doing business. What used to take years has to happen in months. What takes months today should happen in days and hours," he stated, underlining the urgency.
According to Mukundan, India stands out as one of only three economies globally, with a Gross Domestic Product (GDP) exceeding $1 trillion, that has consistently achieved over 6% growth for the past 25 years, alongside China and Vietnam. This impressive track record provides a robust foundation for India to aim for significantly higher growth targets in the coming years.
To achieve this accelerated growth, Mukundan outlined reforms spanning three critical areas. First, "foundational reforms" include strengthening agriculture, bolstering Micro, Small, and Medium Enterprises (MSMEs), and improving overall resource security. These areas are seen as fundamental pillars for sustained economic development.
Second, "factor reforms" are essential for enhancing competitiveness. These involve key sectors like power, logistics, labor, and land. Mukundan pointed out that high power costs, bottlenecks in last-mile logistics, and persistent difficulties in acquiring and recycling industrial land continue to hinder industrial growth. To address these, he advocated for greater digitization of land records and more flexible floor-space norms, which would enable existing facilities to expand more easily. He also suggested the creation of a GST Council-like mechanism to streamline land-related reforms.
Finally, "future-ready reforms" are crucial for India's long-term prosperity. This category emphasizes the need to accelerate the adoption of Artificial Intelligence, significantly increase investment in research and development, and step up efforts in sustainability and water management. These forward-looking initiatives will ensure India remains competitive and resilient in the global arena.
