Bad labour laws, tough land acquisition? DIPP points to solutions in various states

May 07 2014, 05:39 IST
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Gujarat, on the other hand, has excelled on land acquisition and pollution control Gujarat, on the other hand, has excelled on land acquisition and pollution control
SummaryGujarat, on the other hand, has excelled on land acquisition and pollution control

When the next government comes to power, it doesn’t need to look too far for solutions to vexing problems like rigid labour laws or tough land acquisition processes, reports fe Bureau in New Delhi. A Department of Industrial Promotion and Policy (DIPP) study finds the solutions have already been implemented in one state or another. The more dynamic states in India and consequently the fastest-growing ones have found ways to cut the red tape and make it easier for companies to do business. Among the ideas that have worked well are Maharashtra’s single-window clearances for industrial units and labour management, found to be the best in the country. Gujarat, on the other hand, has excelled on land acquisition and pollution control. The findings of a joint study by the DIPP and management consultancy Accenture found Karnataka’s integrated and comprehensive indirect tax management system the best in India. It also believes the single-window clearances in Rajasthan and Punjab have been a success. States that have streamlined clearances and improved governance have benefited from higher economic growth — Maharashtra and Gujarat have each grown by over 9% between 2005-06 and 2012-13 even as the overall GDP growth of the country averaged 7.6%.

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