New Delhi, Dec 24 (GCBusiness) 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.