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Type: Op-ed

  • In India, the steady subversion of equality

    Context

    The sharp turns away from democracy seen recently in the country must jolt citizens into stopping the descent.

    Equality in democracy

    • The central edifice of a democracy, or what makes it a revolutionary idea, is equality, or that it accords an equal status to all its people.
    • The promise of the far-sighted Indian Constitution was of equal rights to all.
    • If any benefit was accorded to smaller groups, religious or linguistic minorities or Dalits, it was in order to achieve substantive equality.

    Faith as a differentiator

    • The basis of citizenship under the Citizenship (Amendment) Act 2019, allowing for non-Muslims from three countries to fast-track their citizenship, was the most serious push to introduce religion into citizenship.
    • Impact on marital choice: In terms of marital choices, laws in the country in States where the national ruling party holds sway have drawn harsh attention on inter-faith couples.
    • The Gujarat law criminalising inter-faith marriages has been called out by the Gujarat High Court.
    • But the ordinance introduced in Uttar Pradesh (Uttar Pradesh Prohibition of Unlawful Conversion of Religion Ordinance, 2020) is now a law.
    • Food has been criminalised: Stringent laws on cattle end up penalising those who have a certain diet, namely beef. The mood in the country created and abetted by people close to the powers that be, has led to lynchings.
    • State governments and the Union government have mostly ignored the Supreme Court’s directions in 2018 to set up fast track courts, advice to take steps to stop hate messages on social media, or compensation to victims, or bringing in an anti-mob lynching law.
    • Circumscribe where on can reside: The Gujarat Prohibition of Transfer of Immovable Property and Provision for Protection of Tenants from Eviction from Premises in Disturbed Areas Act, popularly known as the Disturbed Areas Act, circumscribes where one can reside.
    • The act was brought in an atmosphere where there was communal rioting and forced displacement, to ostensibly protect communities from distress sales, the twist accorded to it over the years firmly makes the forced separation of communities. evident.

    Hostile environment

    • Scholars like Thomas Blom Hansen and Paul Brass have unhesitatingly pointed to the role of violence that has historically been acceptable in Indian society and politics.
    • Scholars like Christophe Jaffrelot have pointed out that there will not be a seamless transition to an “ethnic democracy”.
    • The Indian nation is one formed on the promise of shared and participatory kinship, which recognised Indian nationalism as being distinct from the faith you practised at home.
    • Prioritising any one identity will have disastrous consequences and history provides enough evidence of this.

    Conclusion

    The mobs read together with actions of the Union government and that of State governments mark a sharp turn away from the democracy India claims it is. That must jolt us into recognising the distance we have already travelled down the wrong path. That may be the first step to try to wrest the descent into the darkness of an apartheid state.

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  • How to create a truly digital public

    Context

    Despite the push for the adoption of digital technologies, large segments of Indians still can’t access or haven’t learned to trust digital artefacts.

    Issue of exclusion

    • Recognising the power of technology to drive inclusion at a massive scale, the state is doubling down on technology to reach more citizens and serve them better.
    • However, often the paradigm of technology for such services is built around the “elite” citizen, who is comfortable with technology.
    • Often, this imagined citizen is male, urban, upper class.
    • Large segments of Indians still can’t access or haven’t learned to trust digital artefacts.
    • Many among marginalised groups struggle to access digital civic platforms, and instead rely on trusted human intermediaries.

    Suggestions to make digital space truly public

    1) Design with the citizen

    • Encouraging human-centric design, and mandating user-assessments prior to roll out of GovTech platforms should be a key priority.
    • This is a shift from the default “build first and then disseminate” approach.
    • For example, formative research and human-centric design was informative in the creation of the first UPI payments app, BHIM.
    • BHIM’s simple interface and onboarding, use of relatable iconography and multi-language capabilities played an important role in early adoption of UPI among non “digital natives”.
    • Similarly, as the “Human Account” project demonstrated, it is possible to start with users in designing pro-poor fintech products, like the “Postman Savings” product which India Post Payments Bank designed for the rural poor.

    2) Harness trusted human interface to serve those who are not comfortable with technology

    •  Local intermediaries, such as formal and informal community leaders and civil society organisations, can play a key role in bridging the digital divide.
    • Working with existing networks (for example ASHAs) or carefully setting them up (such as the Andhra Pradesh Ward Secretariat programme), where pre-existing trust, community knowledge, and embeddedness can play a significant role, should be prioritised.

    3) Institutionalise an anchor entity that brings together innovators, policy makers and researchers

    • Such an entity will help to push the frontier on citizen-centricity in GovTech.
    • Such a platform — like the Citizen Lab in Denmark — can play a role in generating formative research.
    • Embedding this research in practice by partnering with the government as well as market innovators, and working with civil society organisations to enhance access to GovTech.

    Conclusion

    As India makes rapid strides in its digitalisation journey, it is timely to invoke Gandhiji’s talisman and ensure that GovTech can serve its highest and greatest purpose, that is, serving those who are last in line.

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  • The three acts of entrepreneurship that accelerated India’s start-up ecosystem

    Context

    Three acts of entrepreneurship from five years ago — Jio, UPI, and GST — have converged to accelerate our startup ecosystem.

    Let’s look at each in more detail

    • Impact of JIO: India’s per GB internet data costs are just 3 per cent of those in the US.
    • A bold and risky $35 billion bet made by a private company transformed Indians from being data deprived to data-rich; consumption has jumped 15 times because costs fell by over 90 per cent.
    • The addition of millions of consumers and smartphones since Jio’s delightful five-year disruption of the market has exploded the most important universal metric in startup valuation — addressable market.
    • Affordable digital connectivity is transforming 75 crore of them into consumers, entrepreneurs, employees, and suppliers.
    • Role of UPI: Google’s letter to the US Federal Reserve suggesting America learn from India’s Universal Payments Interface (UPI) acknowledged that our real-time, low-cost, open-architecture payment plumbing is a public good.
    • UPI’s mobile-first architecture is a key pillar of the paperless, presenceless, and cashless framework of the Aadhaar-seeded India Stack.
    •  Impact of GST: GST attacked complexity and incentivised law-abiding supply and distribution chains.
    • It was long in the making but going live needed the risk-taking of starting with a second-best architecture, accepting some unjustifiable rates, and state revenue guarantees.
    • The doubling of indirect tax registered enterprises since GST creates a virtuous economic cycle of higher total factor productivity for enterprises and employees.

    Flourishing startup ecosystem

    • India now has the highest ratio of unlisted to listed companies with a $1 billion valuation.
    • Initial public offering documents filed by early startups like Nykaa, Paytm, Zomato and PolicyBazaar roughly average a 10x valuation rise since the triad did IPO.
    • Estimates suggest India’s startup ecosystem valuation will explode from $315 billion today to $1 trillion by 2025.

    Conclusion

    Gandhiji’s notion of democracy — where the weakest have the same opportunity as the strongest — needs an economic meritocracy only possible when entrepreneurs have all the ingredients in the right proportions.

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  • What India’s new water policy seeks to deliver

    Context

    Over a period of one year, the committee set up to draft the new National Water Policy (NWP) received 124 submissions by state and central governments, academics and practitioners. The NWP is based on the striking consensus that emerged through these wide-ranging deliberations.

    Major suggestion in NWP

    Demand-side: Diversification of public procurement operations

    • Irrigation consumes 80-90 per cent of India’s water, most of which is used by rice, wheat and sugarcane.
    • Thus, crop diversification is the single most important step in resolving India’s water crisis.
    • The policy suggests diversifying public procurement operations to include nutri-cereals, pulses and oilseeds.
    • This would incentivise farmers to diversify their cropping patterns, resulting in huge savings of water.

    2) Reduce-Recycle-Reuse

    • Reduce-Recycle-Reuse has been proposed as the basic mantra of integrated urban water supply and wastewater management, with treatment of sewage and eco-restoration of urban river stretches, as far as possible through decentralised wastewater management.
    • All non-potable use, such as flushing, fire protection, vehicle washing must mandatorily shift to treated wastewater.

    3) Supply-side measure: Using technology to utilised stored water in dams

    • Within supply-side options, the NWP points to trillions of litres stored in big dams, which are still not reaching farmers.
    • NWP suggests how the irrigated areas could be greatly expanded at very low cost by deploying pressurised closed conveyance pipelines, combined with Supervisory Control and Data Acquisition (SCADA) systems and pressurised micro-irrigation.

    4) Supply of water through “nature-based solutions”

    • The NWP places major emphasis on supply of water through “nature-based solutions” such as the rejuvenation of catchment areas, to be incentivised through compensation for ecosystem services.
    • Specially curated “blue-green infrastructure” such as rain gardens and bio-swales, restored rivers with wet meadows, wetlands constructed for bio-remediation, urban parks, permeable pavements, green roofs etc are proposed for urban areas.

    5) Sustainable and equitable management of groundwater

    • Information on aquifer boundaries, water storage capacities and flows provided in a user-friendly manner to stakeholders, designated as custodians of their aquifers, would enable them to develop protocols for effective management of groundwater.

    6) Rights of Rivers

    • The NWP accords river protection and revitalisation prior and primary importance.
    • Steps to restore river flows include: Re-vegetation of catchments, regulation of groundwater extraction, river-bed pumping and mining of sand and boulders.
    • The NWP outlines a process to draft a Rights of Rivers Act, including their right to flow, to meander and to meet the sea.

    7) Emphasis on water quality

    • The new NWP considers water quality as the most serious un-addressed issue in India today.
    • It proposes that every water ministry, at the Centre and states, include a water quality department.
    • The policy advocates adoption of state-of-the-art, low-cost, low-energy, eco-sensitive technologies for sewage treatment.
    • Widespread use of reverse osmosis has led to huge water wastage and adverse impact on water quality.
    • The policy wants RO units to be discouraged if the total dissolved solids count in water is less than 500mg/L.
    • It suggests a task force on emerging water contaminants to better understand and tackle the threats they are likely to pose.

    8) Reforming governance of water

    • The policy makes radical suggestions for reforming governance of water, which suffers from three kinds issues: That between irrigation and drinking water, surface and groundwater, as also water and wastewater.
    • Government departments, working in silos, have generally dealt with just one side of these binaries.
    • Dealing with drinking water and irrigation in silos has meant that aquifers providing assured sources of drinking water dry up because the same aquifers are used for irrigation, which consumes much more water.
    • And when water and wastewater are separated in planning, the result is a fall in water quality.

    9) Creation of National Water Commission

    • The NWP also suggests the creation of a unified multi-disciplinary, multi-stakeholder National Water Commission (NWC), which would become an exemplar for states to follow.
    • Governments should build enduring partnerships with primary stakeholders of water, who must become an integral part of the NWC and its counterparts in the states.

    Conclusion

    The new National Water Policy calls for multi-disciplinary, multi-stakeholder approach to water management.

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  • Strengthening healthcare through ABHIM

    Context

    The Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (ABHIM), announced recently, seeks to realise greater investment in the health system as proposed in the Budget, implement the Fifteenth Finance Commission recommendations such as strengthening of urban and rural primary care, stronger surveillance systems and laboratory capacity.

    Measures of ABHIM

    • It will support infrastructure development of 17,788 rural health and wellness centres (HWCs) in seven high-focus States and three north-eastern States.
    • In addition, 11,044 urban HWCs will be established in close collaboration with Urban Local Bodies.
    • The various measures of this scheme will extend primary healthcare services across India.
    • Areas like hypertension, diabetes and mental health will be covered, in addition to existing services.
    • Support for 3,382 block public health units (BPHUs) in 11 high-focus States and establishment of integrated district public health laboratories in all 730 districts will strengthen capacity for information technology-enabled disease surveillance.
    • To enhance the capabilities for microbial surveillance, a National Platform for One Health will be established.
    • Four Regional National Institutes of Virology will be established.
    • Laboratory capacity under the National Centre for Disease Control, the Indian Council of Medical Research and national research institutions will be strengthened.
    • Fifteen bio-safety level III labs will augment the capacity for infectious disease control and bio-security.

    Way forward

    • There is a need to train and deploy a larger and better skilled health workforce.
    • We must scale up institutional capacity for training public health professionals.
    • Private sector participation in service delivery may be invited by States, as per need and availability.
    • ABHIM, if financed and implemented efficiently, can strengthen India’s health system by augmenting capacity in several areas and creating a framework for coordinated functioning at district, state and national levels.
    • Many independently functioning programmes will have to work with a common purpose by leaping across boundaries of separate budget lines and reporting structures.
    • That calls for a change of bureaucratic mindsets and a cultural shift in Centre-State relations.

    Conclusion

    The ABHIM can fix the weaknesses in India’s healthcare system.

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  • Energy cooperation as the backbone of India-Russia ties

    Context

    With its abundant energy sources and appetite for trade diversification, Russia could be an ultimate long-term partner of India as it tries to diversify its trade relations.

    Energy partnership

    • Indian Prime Minister in a virtual address at 6th Eastern Economic Forum (EEF) in Russia’s Vladivostok said that “India-Russia energy partnership can help bring stability to the global energy market.”
    • Indian and Russian Energy Ministers announced that the countries’ companies have been pushing for greater cooperation in the oil and gas sector beyond the U.S.$32 billion already invested in joint projects.
    • India’s Minister for Petroleum and Natural Gas Hardeep Singh Puri referred to Russia as the largest investor in India’s energy sector.
    • One of the examples of cooperation between the two countries in energy transformation is the joint venture between India’s Reliance Industries Ltd. and Russia’s Sibur, the country’s largest petrochemicals producer.
    • Apart from accounting for most of the Indian butyl rubber market, Reliance Sibur Elastomers exports its products to Asia, Europe, the United States, Brazil and other countries.
    • A few years ago, Rosneft invested U.S.$12.9 billion in India’s second-largest private oil refiner, Essar Oil, renamed Nayara Energy, marking it one of the most significant foreign investments in years.
    • Partnership in renewable: In efforts to transition to green energy, India has recently achieved a significant milestone of completing the countrywide installation of 100 gigawatts of total installed renewable energy capacity, excluding large hydro.
    • A recent Deloitte report has forecasted that India could gain U.S.$11 trillion in economic value over the next 50 years by limiting rising global temperatures and realising its potential to ‘export decarbonization’.
    • Unknowns of climate change and threats of a new pandemic suggest that the country should accelerate its energy transition. Russia, one of the key global players across the energy market, could emerge as an indispensable partner for such a transition.
    • Partnership in nuclear energy: Russian companies have been involved in the construction of six nuclear reactors in the Kudankulam nuclear power project at Tamil Nadu.
    • India and Russia secure the potential of designing a nuclear reactor specifically for developing countries, which is a promising area of cooperation.
    • India’s nuclear power generation capacity of 6,780 MW may increase to 22,480 MW by 2031, contributing to the country’s efforts to turn to green energy.

    Way forward

    • In September, almost all of Russia’s major energy companies were interested in projects in India, Russia’s Energy Minister said at the Vladivostok forum in September, adding that he sees prospects for energy cooperation in all areas.
    • However, the current bilateral exchange rate needs to accelerate for India to grasp its potential from energy transformation.

    Conclusion

    To meet its growing energy demand and succeed in green transformation, India needs approximately U.S.$500 billion of investments in wind and solar infrastructure, grid expansion, and storage to reach the 450 GW capacity target by 2030. Therefore, more efforts are needed to expand cooperation with such partners as Russia.

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  • Analysing the Supreme Court’s Pegasus order

    Context

    The Supreme Court of India has appointed a committee presided by Justice (Retd.) R V Raveendran to inquire into the Pegasus revelations.

    Terms of reference

    • The court’s terms of reference include queries on, “What steps/actions have been taken by the Union of India after reports were published in the year 2019 about hacking of WhatsApp accounts”, and, “Whether any Pegasus suite of spyware was acquired by the Union of India, or any State Government, or any central or state agency for use against the citizens of India”.
    • The constitution of this committee marks an important step towards accountability for the victims and the larger public on the use of Pegasus.

    Significance of the committee on Pegasus issue

    1) Transparency and disclosure

    • The order of the court constituting the committee attains significance for three clear reasons.
    • The first is the court’s continuing insistence on transparency and disclosure by the Union government.
    • The only filing made in court by the government was a limited affidavit, containing short paragraphs of generalised denials and the sole annexure of a statement by the Minister for Electronics and IT before Parliament.
    • Immediately, the Supreme Court pointed out that these are inadequate and provided further time.

    2) The SC’s approach towards national security

    • The second reason is the Supreme Court’s firm approach towards the national security submissions by the Union government.
    • The court correctly applied the settled convention on legal pleadings and affidavits by asking the government to, “necessarily plead and prove the facts which indicate that the information sought must be kept secret as their divulgence would affect national security concerns.”
    • The second aspect of the national security argument is how the court balances it with the fundamental right to privacy.
    • Here, drawing from the framework of the K S Puttaswamy judgment the court specifically states that, “national security cannot be the bugbear that the judiciary shies away from, by virtue of its mere mentioning” and, “mere invocation of national security by the State does not render the Court a mute spectator”.
    • These are significant observations that, when followed as precedent, will bolster confidence in constitutional adjudications especially when courts demand evidence on arguments of “national security” to avoid generalised statements made to evade accountability.

    3)  Rejection of the suggestion by the Solicitor-General to constitute a government committee of experts

    • The court correctly notes that even though the Pegasus revelations were first made on November 1, 2019, there has been little movement on any official inquiry.
    • It also records the genuine apprehension of the petitioners, many of whom are victims of Pegasus, that since the sale of this malware can only be made to governments, they fear the involvement of state agencies.

    Challenges

    • These include the functioning of the committee and the cooperation of government witnesses, the publication of the report so as to ensure public confidence and, ultimately, the directions and remedy provided by the Supreme Court.

    Conclusion

    Hence, the constitution of this committee provides hope. At the same time, any honest assessment should consider the more challenging tasks ahead.

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  • Preparing for outbreaks

    Context

    Prime Minister Narendra Modi launched the Ayushman Bharat Health Infrastructure Mission, one of the largest pan-India schemes for strengthening healthcare infrastructure, in his parliamentary constituency Varanasi in Uttar Pradesh.

    Aims of Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (ABHIM) and how it seeks to achieve it

    • This was launched with an outlay of ₹64,180 crore over a period of five years.
    •  In addition to the National Health Mission, this scheme will work towards strengthening public health institutions and governance capacities for wide-ranging diagnostics and treatment, including critical care services.
    • The latter goal would be met with the establishment of critical care hospital blocks in 12 central institutions such as the All India Institute of Medical Sciences, and in government medical colleges and district hospitals in 602 districts.
    • Laboratories and their preparedness: The government will be establishing integrated district public health labs in 730 districts to provide comprehensive laboratory services.
    • Research: ABHIM will focus on supporting research on COVID-19 and other infectious diseases, including biomedical research to generate evidence to inform short-term and medium-term responses to such pandemics.
    • One health approach: The government also aims to develop a core capacity to deliver the ‘one health’ approach to prevent, detect, and respond to infectious disease outbreaks in humans and animals.
    • Surveillance labs: A network of surveillance labs will be developed at the block, district, regional and national levels for detecting, investigating, preventing, and combating health emergencies and outbreaks.
    • Local capacities in urban areas: A major highlight of the current pandemic has been the requirement of local capacities in urban areas.
    • The services from the existing urban primary health centres will be expanded to smaller units – Ayushman Bharat Urban Health and Wellness Centres and polyclinics or specialist clinics.

    Conclusion

    The Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (ABHIM) is another addition to the arsenal we have to prepare for such oubreaks in the future.

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  • Why India shouldn’t sign on to net zero

    Context

    The recent report of the Intergovernmental Panel on Climate Change made it clear that limiting the increase in the world’s average temperature from pre-industrial levels to those agreed in the Paris Agreement requires global cumulative emissions of carbon dioxide to be capped at the global carbon budget.

    Understanding why reaching net zero by itself is irrelevant to forestalling dangerous warming

    • The promise of when you will turn off the tap does not guarantee that you will draw only a specified quantity of water.
    • The top three emitters of the world — China, the U.S. and the European Union — even after taking account of their net zero commitments and their enhanced emission reduction commitments for 2030, will emit more than 500 billion tonnes of carbon dioxide before net zero.
    • These three alone will exceed the limit of about 500 billion tonnes from 2020 onwards, for even odds of keeping global temperature increase below 1.5°C.

    Issues with ‘net zero’ target

    • Neither the Paris Agreement nor climate science requires that net zero be reached individually by countries by 2050, the former requiring only global achievement of this goal “in the second half of the century”.
    • Claims that the world “must” reach specific goals by 2030 or 2050 are the product of specific economic models for climate action.
    • They front-load emission reduction requirements on developing countries, despite their already low emissions, to allow the developed world to backload its own, buying time for its own transition.
    • These stringent limits on future cumulative emissions post 2020, amounting to less than a fifth of the total global carbon budget, is the result of its considerable over-appropriation in the past by the global North.
    • Promises of net zero in their current form perpetuate this hugely disproportionate appropriation of a global commons, while continuing to place humanity in harm’s way.

    Suggestions for India

    • India is responsible for no more than 4.37% cumulative emissions of carbon dioxide since the pre-industrial era, even though it is home to more than a sixth of humanity.
    • India’s per capita emissions are less than half the world average, less than one-eighth of the U.S.’s.
    • For India to declare net zero now is to accede to the further over-appropriation of the global carbon budget by a few.
    • India’s contribution to global emissions, in both stock and flow, is so disproportionately low that any sacrifice on its part can do nothing to save the world.
    • India, in enlightened self-interest, must now stake its claim to a fair share of the global carbon budget.
    • Technology transfer and financial support, together with “negative emissions”, if the latter succeeds, can compensate for the loss of the past.
    • Such a claim by India provides it greater, and much-needed long-term options.
    • It enables the responsible use of coal, its major fossil fuel resource, and oil and gas, to bootstrap itself out of lower-middle-income economy status and eradicate poverty, hunger and malnutrition for good.
    • India’s resource-strapped small industries sector needs expansion and modernisation.
    • The agriculture sector, the second-largest source of greenhouse gas emissions for India after energy, needs to double its productivity and farmers’ incomes and build resilience.
    •  Infrastructure for climate resilience in general is critical to future adaptation to climate change.
    • All of these will require at least the limited fossil fuel resources made available through a fair share of the carbon budget.

    Conclusion

    Without restriction of their future cumulative emissions by the big emitters, to their fair share of the global carbon budget, and the corresponding temperature target that they correspond to made clear, India cannot sign on to net zero.

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  • What to do about the heavy cost of doing business in India

    Context

    The controversy over Ease of the Doing Business (EoDB) notwithstanding, India must now sharpen its focus on the Cost of Doing Business (CoDB).

    Cost of Doing Business in India

    • India has made considerable progress on EoDB rankings since 2016.
    • While the Centre’s focus on EoDB has been commendable, several state governments have also made efforts to improve business conditions.
    •  India must now sharpen its focus on the Cost of Doing Business (CoDB).
    • India lags behind other countries in terms of CoDB on several counts.

    Two key factors influencing CoDB — energy costs and regulatory overload

    • High fuel costs: Diesel prices in India are 20.8 per cent higher than those in China, 39.3 per cent higher than in the US, 72.5 per cent higher than Bangladesh and 67.8 per cent higher than in Vietnam.
    • This is largely because of heavy taxation — total taxes on diesel account for over 130 per cent of the base price in India.
    • High power costs: In the case of electricity, prices for businesses in India were higher by around 7-12 per cent vis-à-vis those in the US, Bangladesh or China and by as much as 35-50 per cent as compared to those in South Korea or Vietnam prior to the recent coal/energy crisis.
    • Coal, which accounts for more than 70 per cent of electricity generation in India, is also pricier vis-à-vis other countries leading to higher electricity prices.
    • Like in the case of the petroleum sector, government levies account for nearly half of the prices paid by coal consumers.
    • And coal producers cannot claim input tax credit because electricity is not under GST.
    • Further, coal freight costs are amongst the highest in the world as high freight rates are used to cross-subsidise passenger fares by the railways.
    • Regulatory overload: Outsized regulatory levels also pose a significant burden on businesses.
    • A Teamlease report highlights that a small manufacturing company with just one plant and up to 500 employees is regulated by more than 750 compliances, 60 Acts and 23 licences and regulations.
    • A mid-sized manufacturing company with six plants spread across different states is regulated by more than 5,500 compliances, 135 Acts and 98 licences and registrations.
    •  Keeping track of such a large number of regulations along with the changes thereof, imposes huge operational and financial costs on businesses, particularly the MSME segment.

    Way forward

    • Including fuels under GST would lower costs for businesses owing to input tax credit even if taxation levels continue to remain high.
    • Cleaning up the power distribution sector, which is largely state-controlled, could potentially lower electricity prices for businesses.
    • Fiscal incentives by the Centre: A majority of the compliances stem from the states and reducing this burden would require a significant push on states to act on this front.
    • The Centre could leverage the “carrot and stick” framework — using fiscal incentives to nudge the states to act and disincentivise them from maintaining the status quo.

    Consider the question “What are the factors affecting the cost of doing business in India? Suggest the measures to reduce it.”

    Conclusion

    The Government must prioritise reducing the cost of energy and compliances for businesses rather than focusing on de jure measures to boost ease of doing business. These will boost India’s manufacturing competitiveness significantly and further increase formalisation in the economy.

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