PERFORMANCE RATING
India Legal|February 14, 2022
In a new initiative, ministries will be ranked on their ease of doing business. While this is meant to minimise physical files to reduce corruption, critics say there is no guarantee this will generate jobs
Abhilash Kumar Singh and India Legal Bureau
PERFORMANCE RATING

IN a new development, the government is mulling over ranking ministries on their ease of doing business after extensive consultations with industry leaders, startups and trade bodies. This seems to be an extension of Finance Minister Nirmala Sitharaman's announcement on September 5, 2020, of the 4th edition of Business Reform Action Plan (BRAP) ranking of states. This Plan was started in 2015 and its net was widened in 2020. The Business Reform Action Plan 2018-19 includes 180 reform points covering 12 business regulatory areas, such as access to information, single window system, labour, environment, etc. The idea was for states to attract investments, foster healthy competition and increase ease of doing business.

Now with the ranking system for ministries, it seems that the government is fostering healthy competition among them to push for a growth-based agenda wherein they will be responsible and accountable for their contribution to the ease of doing business in India and promoting foreign businesses to invest in India.

This serves the larger purpose as outlined in the Annual Financial Investment presented on February 1, 2022, by the finance minister, wherein the government has set up an ambitious yet a difficult objective of providing 60 lakh jobs in the next five years. This inter-ministerial ranking might just prove to be an important and innovative parameter to attract foreign investment. Market loves innovation and this innovation at the level of ministries may prove to be a turning point for the government which has been facing flak for not being able to create jobs.

These rankings, a senior government official reportedly said, are being prepared in extensive consultation with senior industrialists, industry bodies, trade and policy groups as well as representatives of startups and are likely to be announced shortly.

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