Over 40,000 reforms carried out in last decade for ease of business; Gujarat emerges as front-runner: DPIIT Secy

The implementation of over 40,000 reforms underscores the shift towards cooperative federalism, where the Union and states collaborate to achieve national economic goals. The DPIIT has been instrumental in facilitating this through frameworks like the Business Reform Action Plan (BRAP), which assesses and ranks states based on their reform implementation. This fosters competitive federalism, encouraging states like Gujarat to improve their regulatory environment to attract investment. The focus on a District Business Reform Action Plan indicates a decentralization of these efforts, recognizing that real administrative bottlenecks often exist at the local level. Furthermore, the push for decriminalization of minor business offenses, coordinated by the Cabinet Secretariat, is a crucial step towards reducing the compliance burden and harassment of businesses, aligning with the ethos of 'Minimum Government, Maximum Governance'.

The article highlights several key economic strategies deployed to boost India's manufacturing competitiveness. The Production Linked Incentive (PLI) scheme is a cornerstone of this effort, providing financial incentives to boost domestic manufacturing across 14 key sectors, aiming to create 'national champions' and integrate India into global value chains. To complement this, massive infrastructure projects like the National Industrial Corridor Development Program are creating dedicated industrial townships to provide plug-and-play facilities, reducing logistics costs and setup times. The role of Free Trade Agreements (FTAs) is also emphasized; agreements with regions like the EU, UK, and EFTA are not just about market access but are strategically used to expose domestic industries to global competition, thereby forcing improvements in cost-competitiveness and quality standards. Government support for innovation through initiatives like the RDI fund (Research, Development, and Innovation) and the Fund of Funds for Startups is critical for moving up the value chain, particularly in deep tech sectors.

A significant focus is placed on elevating the quality of Indian manufacturing to meet both domestic expectations and international standards required by FTAs. The Quality Council of India (QCI) is working at the cluster level to improve inputs, standards, testing, and overall productivity. This is crucial because non-tariff barriers, such as strict sanitary and phytosanitary (SPS) measures or technical barriers to trade (TBT), are often used by developed nations to restrict imports. By proactively improving quality standards, India can mitigate these risks and enhance its export potential. The article also touches upon the need to manufacture intermediate products and deepen local value chains. Relying heavily on imported intermediates (like APIs in pharmaceuticals or electronic components) exposes domestic industries to supply chain shocks; therefore, developing robust domestic backward linkages is a key policy imperative for self-reliance and sustained industrial growth.