Union Budget 2024 likely to prioritize ease of business
The Union Budget 2024 is likely to prioritize enhancing the ease of doing business in India, focusing on decriminalizing certain offenses and reforming labor laws. Commerce Minister Piyush Goyal has already held meetings with the Commerce Ministry and NITI Aayog to discuss ways to improve the business environment in the country, a person aware of the development told Moneycontrol.
Jan Vishwas bill aims to decriminalize minor offences
The Jan Vishwas bill seeks to decriminalize 183 minor offenses under 42 Union Acts, impacting entrepreneurs. However, the effect on ease of doing business might not be significant since it addresses only a fraction of the 26,134 provisions. Notably, five Acts contribute to 52% of the proposed decriminalizations. These Acts are Merchant Shipping Act, 1958, Environment (Protection) Act, 1986, Air (Prevention and Control of Pollution) Act, 1981, National Housing Bank Act, 1987, and Prevention of Money Laundering Act, 2002.
Overhaul of labor laws since 2019
India has been restructuring its labor laws since 2019, condensing 29 Union Acts into four codes. These new codes aim to slash criminal provisions in labor laws by about 80%. The four codes include The Code on Wages, 2019; The Occupational Safety, Health and Working Conditions Code, 2020; The Code on Social Security, 2020; and The Industrial Relations Code, 2020.
World Bank's Ease of Doing Business Survey discontinued
India has been making progress in the World Bank's Ease of Doing Business Survey, climbing from 142nd place in 2015 to 63rd in 2020. However, the survey was discontinued after an investigation revealed that China may have influenced the 2018 study to boost its ranking.
