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BRIDGING THE GOVERNANCE GAP:
BEST PRACTICES FROM SEVEN STATES
While India is among the fastest-growing economies, it is the not the easiest of places to do business. The World Bank, in its 2012
Doing business report, ranked India 132 out of 183 countries in terms of ease of doing business. This was driven by the
complexity and time-consuming nature of a range of processes in setting up a business, or dealing with construction permits,
registering property, paying taxes and enforcing contracts. A study by Bain & Co & industry chamber Ficci identifies the best
practices seven states have adopted on key factors that impact the business environment in India




Summary of best practices and strong procedural initiatives in seven states
                                            INDIA                                                INTERNATIONAL
                                            GUJARAT: Policy based on partnership with owners     SOUTH KOREA AND JAPAN: Enforcement of an
    Land                                    and market-prices                                    unambiguous pricing and acquisition mechanism
    acquisition                             ANDHRA PRADESH: Smooth and predictable
                                            procedures for land allotment
                                            KARNATAKA: Computerised procedures and               SINGAPORE, PORTUGAL: Reduced title transfer
   Property                                 anywhere registration (Bangalore)                    time to 1-7 days
   registration                             GUJARAT: Computerised land records to accelerate     EGYPT: Reduced stamp duties significantly
                                            registration time
                                            TAMIL NADU: Online submission of building plans in   CHINA: Implemented online approval of plans
  Obtaining                                 Chennai
  construction                                                                                   DENMARK: Simplified procedures for providing
  permits                                   KARNATAKA: Online submission and computerised        construction permits
                                            approval of building plans in Bangalore urban area   EGYPT: Implemented a single window for
                                                                                                 construction
   Single-                                  ANDHRA PRADESH: Implementation of the                SINGAPORE AND HONG KONG: Established online
   window                                   Single Window Act with deemed clearances             single window for trade clearances
   clearance                                RAJASTHAN: Implementation of Single-Window Act       MEXICO: Implemented an online, single window
   mechanism                                with time-bound clearances                           system for businesses

   Industrial                               TAMIL NADU: Creation of large-scale automotive hub   JAPAN: Set up best-in-class manufacturing clusters
   clusters                                 GUJARAT: Creation of pharmaceutical hub,             in textiles and automotive, among others with local
                                            automotive hub                                       government support
                                            MAHARASHTRA: Online labour management system         MULTIPLE COUNTRIES: Encouraged industry
   Labour                                   to administer labour laws and provide a range of     participation in skill and capability building;
   reforms                                  labour management services online                    flexibility in labour policies
                                            GUJARAT: Strong skill development initiatives
                                            through industry participation
   Environment                              GUJARAT: Implementation of e-governance by the       US, UK: Initiated reforms to simplify processes for
   related                                  Gujarat Pollution Control Board                      obtaining environment-related approvals; regular
   compliances                                                                                   training for industry and officials

                                            GUJARAT AND RAJASTHAN: Strong availability of        BRAZIL: Superior development of alternate sources
   Availability                             quality power for industry                           of energy
   of power                                                                                      FRANCE: Development of nuclear power: Over 70%
                                            WEST BENGAL: Initiatives to reduce AT&C losses
                                                                                                 of electricity derived from nuclear source
                                            RAJASTHAN: Simplified VAT system                     AZERBAIJAN: Overhauled legacy tax code and
   Payment                                  KARNATAKA: GIS-based property tax                    instituted new, simplified structure
   of taxes                                 payment system                                       CHINA: Simplified total number of payments made
                                                                                                 by industry
                                            MAHARASHTRA, GUJARAT: Multiple, formal               SINGAPORE: Established clear, up-to-date forums for
   Availability of                          mechanisms for disseminating information             transparent and timely information dissemination
   information

Source: Empowering India: Redesigning G2B Relations, a report by FICCI and Bain & Co.                                                 ILLUSTRATION BY BINAY SINHA

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  • 1. BRIDGING THE GOVERNANCE GAP: BEST PRACTICES FROM SEVEN STATES While India is among the fastest-growing economies, it is the not the easiest of places to do business. The World Bank, in its 2012 Doing business report, ranked India 132 out of 183 countries in terms of ease of doing business. This was driven by the complexity and time-consuming nature of a range of processes in setting up a business, or dealing with construction permits, registering property, paying taxes and enforcing contracts. A study by Bain & Co & industry chamber Ficci identifies the best practices seven states have adopted on key factors that impact the business environment in India Summary of best practices and strong procedural initiatives in seven states INDIA INTERNATIONAL GUJARAT: Policy based on partnership with owners SOUTH KOREA AND JAPAN: Enforcement of an Land and market-prices unambiguous pricing and acquisition mechanism acquisition ANDHRA PRADESH: Smooth and predictable procedures for land allotment KARNATAKA: Computerised procedures and SINGAPORE, PORTUGAL: Reduced title transfer Property anywhere registration (Bangalore) time to 1-7 days registration GUJARAT: Computerised land records to accelerate EGYPT: Reduced stamp duties significantly registration time TAMIL NADU: Online submission of building plans in CHINA: Implemented online approval of plans Obtaining Chennai construction DENMARK: Simplified procedures for providing permits KARNATAKA: Online submission and computerised construction permits approval of building plans in Bangalore urban area EGYPT: Implemented a single window for construction Single- ANDHRA PRADESH: Implementation of the SINGAPORE AND HONG KONG: Established online window Single Window Act with deemed clearances single window for trade clearances clearance RAJASTHAN: Implementation of Single-Window Act MEXICO: Implemented an online, single window mechanism with time-bound clearances system for businesses Industrial TAMIL NADU: Creation of large-scale automotive hub JAPAN: Set up best-in-class manufacturing clusters clusters GUJARAT: Creation of pharmaceutical hub, in textiles and automotive, among others with local automotive hub government support MAHARASHTRA: Online labour management system MULTIPLE COUNTRIES: Encouraged industry Labour to administer labour laws and provide a range of participation in skill and capability building; reforms labour management services online flexibility in labour policies GUJARAT: Strong skill development initiatives through industry participation Environment GUJARAT: Implementation of e-governance by the US, UK: Initiated reforms to simplify processes for related Gujarat Pollution Control Board obtaining environment-related approvals; regular compliances training for industry and officials GUJARAT AND RAJASTHAN: Strong availability of BRAZIL: Superior development of alternate sources Availability quality power for industry of energy of power FRANCE: Development of nuclear power: Over 70% WEST BENGAL: Initiatives to reduce AT&C losses of electricity derived from nuclear source RAJASTHAN: Simplified VAT system AZERBAIJAN: Overhauled legacy tax code and Payment KARNATAKA: GIS-based property tax instituted new, simplified structure of taxes payment system CHINA: Simplified total number of payments made by industry MAHARASHTRA, GUJARAT: Multiple, formal SINGAPORE: Established clear, up-to-date forums for Availability of mechanisms for disseminating information transparent and timely information dissemination information Source: Empowering India: Redesigning G2B Relations, a report by FICCI and Bain & Co. ILLUSTRATION BY BINAY SINHA