Department of Industrial Policy and Promotion in its efforts to improve business climate in States, has started preparing the next set of business reforms for States to implement. The States will be implementing business reforms of this new framework for next year’s assessment of implementation of business reforms.

In this regard, a workshop was organized with State Government and Union Territory officials today, to brainstorm on ideas leading to the framework. Nearly 20 States/UTs representatives participated and provided suggestions to DIPP. The meeting was chaired by Secretary Department of Industrial Policy and Promotion Shri Ramesh Abhishek. Many States recommended for a feedback mechanism from beneficiaries, which should be made an integral part of the assessment framework. Other suggestions which were mentioned during the discussion included giving more weightage to key reforms; measure “Quality of Service” to Industry by States/UTs; grouping of States/UTs with respect to their per capita income, rankings on outcome based parameters like timelines for giving clearances/costs in providing NoCs/permits/clearances. Further, States with more than 90% implementation of reforms were requested to handhold and guide the reform process in States/UTs with less than 40% implementation of reforms in this year’s assessment of reforms by States/UTs.

Business reform assessment framework to prioritize key reforms and embed beneficiary feedback for outcome-based state rankings. Department of Industrial Policy and Promotion convened a workshop to develop a new business reform assessment framework, proposing an embedded beneficiary feedback mechanism, greater weight to key reforms, and measurement of quality of service to industry. The framework focuses on outcome-based evaluation-timelines for clearances and administrative costs for permits/NoCs-and recommends grouping States/UTs by per capita income while enabling high-performing States to guide lower-performing jurisdictions.