- The report has ten recommendations to improve the business climate.
- Moderate use of constitutional penalties and establishment of regulatory impact assessment committees can determine the basis for policy reform.
- The report also recommends incorporation of imprisonment sections.
The research report, jointly produced by TeamLease RegTech and the Observer Research Foundation (ORF), highlights issues related to restrictions and makes recommendations for businesses to improve. Regulatory technology company TeamLease RegTech in its report titled “Imprisoned for Business: 26,134 Imprisonment Sections Contained in India’s Business Laws” has highlighted issues related to business and recommended their further improvement.
“Excessive restrictions on MSMEs are especially costly for them; the cost of supporting a typical MSME with more than 150 employees is around ₹12-18 lakh per year,” the report said. Moreover, the report noted that such regulatory trade-offs affect not only profit-making entrepreneurs but also non-profit organizations. The gap between the country’s needs and the state’s means of creating entrepreneurs is widening, the report said.
Speaking on the Exchange of Ideas for Operational Reforms , Team Lease Vice President Manish Sabharwal said that additional criminalization of the Indian employer compliance world breeds corruption, undermines formal employment and poisons justice. He said, “This report is a wonderful contribution to ideas for actionable reforms; the government has made a good start in cleaning up the bars, but in reality the scheme needs to be scaled up in states as well as cleaning up 26,134 prisons for business to really bring down regulatory cholesterol for business”.
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The report has ten recommendations to improve the business climate. Moderate use of constitutional penalties and establishment of regulatory impact assessment committees can determine the basis for policy reform. The report also recommends incorporation of imprisonment sections. For example, procedural errors and fines are imposed while maintaining prison terms, including imprisonment for loss of life, environmental destruction and tax evasion. Also, defining legally prescribed standards including evening legislation and bringing all reforms under a single governing legislation is important to give dignity to entrepreneurs, traders and wealth-creators.
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Commenting on the report, Sameer Saran, president of the Observer Research Foundation, said the announcement lays the groundwork for delivering and fighting for the third generation of economic reforms. “We need to be empowered to make changes in the way we value and treat our businesses, including those who do business and those who run them. I see this report as a starting point for new research and efforts to harness India’s entrepreneurial power.” Not only that, it is now necessary to emerge as a global economic power, he said.
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