The compliances, including approvals and filings, are required under 122 central and state laws.
Manufacturing companies in India may need to fulfil 1,984 compliances under various central and state laws, (depending upon products) which are time-consuming and increase the cost of doing business, industry lobby group Ficci has told top government functionaries ahead of the Union Budget.
A study undertaken by the industry body has shown that the compliances, including approvals and filings, are required under 122 central and state laws, including those related to environment, labour laws, GST and the Companies Act. The issue was flagged before finance minister Nirmala Sitharaman during the pre-Budget consultations, where top officials were also present. Officials from the department for promotion of industry and internal trade were told to look into the issue.
“The process can be streamlined as businesses need to go to agencies multiple times,” said Sandeep Somany, vice-chairman and MD of sanitary products company Hindware, who recently completed his term as Ficci president. He pointed to multiple environmental clearances required under various laws as an example and added that pharmaceuticals and food processing sector companies with pan-India operations may have to undertake several times more compliances.
Officials, however, said that all the compliances may not be required by all manufacturing companies. A company engaged in the engineering sector may need to comply with provisions of the Boilers Act but may not have to do anything with the Food Safety and Standards Act.
“Over the years, the idea has been to reduce compliances and move towards a system of self-certification,” said an official, pointing out that the government is looking to do away with the need for renewal of several licences.
While maximum number of compliances are required under Companies Act, GST would be at the second place if the 136 filings and approvals under Central, State and Integrated GST laws are added.
- Fabrics & Processing2022.01.15THE WORLD’S LARGEST KHADI NATIONAL FLAG WILL BE PRESENTED IN JAISALMER WHICH IS 225 FEET LONG, 150 FEET WIDE AND 1400KG
- Articles2021.12.28INDIA’S EXPORTS OF TECHNICAL TEXTILES WITNESSED A HIKE
- Articles2021.12.28TECHTEXTIL INDIA 2021: FOREIGN INVESTMENT OPPORTUNITIES IN TAMIL NADU
- News & Insights2021.12.22PICANOL LAUNCHES NEW “CONNECT” GENERATION AIRJET & RAPIER WEAVING MACHINES