EASE OF DOING BUSINESS (EODB) 2.0 SHOULD BE A STATE GOVERNMENT-LED INITIATIVE FOCUSED ON FIXING THE ROOT CAUSES BEHIND THE UNEASE OF DOING BUSINESS
BY TN Ashok
New Delhi. Jam 31, 2025:The Modi government today released the Economic Survey calling for faster economic growth which was dependent upon the central and state governments implementing reforms that allowed small and medium enterprises to operate efficiently and compete cost-effectively”.
The Economic Survey 2024-25 was tabled in both houses of Parliament today. The Survey, tabled by Union Minister of Finance and Corporate Affairs MS. Smt. Nirmala Sitharaman says that by reducing excessive regulatory burdens, governments can help businesses become more efficient, reduce costs, and unlock new growth opportunities. Regulations increase the cost of all operational decisions in firms, the Economic Survey said as commented by the chief economic advisor who held a press conference on the same.
Recognising that the government has implemented several policies and initiatives over the last decade to support and promote the growth of MSMEs, the Survey says some challenges in the regulatory environment remain. It says regulatory compliance burden holds back formalisation and labour productivity, limits employment growth, chokes innovation and depresses growth.
The Survey observes tendency for firms in India to remain small and the logic for it often is to remain under the regulatory radar and steer clear of the rules and labour and safety laws. It says that the biggest casualties of this are employment generation and labour welfare, which most regulations were originally designed to encourage and protect, respectively.
