State pilots to drive business reforms

Measures to focus on leading states, before rolling out in others

- Dhirendra Kumar

The Centre is working on a new model to roll out ease of doing business measures, with a focus on key states that are investment magnets: Gujarat, Maharashtra, Tamil Nadu, Karnataka and Delhi.

The next set of reforms to this end will be rolled out in these states, the people said, given their strong industrial base, proactive governance and track record in implementing business-friendly policies.

The emphasis on select states is to create and showcase successful models that can be replicated across the country.

"The plan is to use these states as testing grounds for reforms designed to further reduce compliance burdens, speed up clearances, and strengthen investor confidence," one of the two people cited above said on the condition of anonymity.

These states will be encouraged to mentor the laggards in framing policies to attract investment, set up manufacturing facilities, and generate employment, the second person added.

The plans come at a time when strained relations with the US, India's largest trading partner, have created an urgent need to revitalize domestic industry and attract foreign direct investment (FDI).

Tamil Nadu, with its strong manufacturing base, is expected to pilot faster clearances for micro, small and medium enterprises (MSMEs) in industrial corridors, whereas Gujarat could experiment with plug-and-play industrial parks and simplified green clearances.

These state-level pilots, supported and benchmarked by the Centre, could then serve as templates for wider adoption across the country.