Diplomatist Magazine Oman 2018 - Special Report | Page 29

the World Bank report mentions thatthe
Government recapitalised Indian public sector
banks by pumping in funds worth $32 billion.
This eased the credit availability situation and
spurred investment in important infrastructure
as well as power projects. At the same time,
India also initiated 37 reforms in the areas of
insolvency resolution, protecting the interest
of minority shareholders, and simplifying the
process of taxes.These measures, as the World
Bank report states, led to India’s boosted
ranking.
The Government has also reinforced access
to credit by simplifying the rules on priority
of secured creditors outside reorganisation
proceedings. It has also embraced a new
insolvency and bankruptcy code that brought a
reorganisation procedure for corporate debtors.
In trading across borders, India has lowered
the border compliance time by boosting
infrastructure at Mumbai’s Nhava Sheva Port.
The country has also fastened the process of
obtaining a building permitby implementing
an online Single Window System for approval
of building plans. This new system now allows
for submission and approval of building plans
prior to requesting the building permit.The
India’s biggest
tax reform, the
GST, has also
been successfully
introduced. With
this, we have moved
towards a modern
tax regime which is
transparent, stable
and predictable.
Government has also simplifi ed the process
of business incorporation by introducing the
SPICe form (INC-32). This form effectively
combines the application for the Permanent
Account Number (PAN) and the Tax Account
Number (TAN) into a single submission.
Procedures have been simplifi ed in 2017 for
exporters and importers. For instance, export
and import border compliance costs were
lowered in Delhi and Mumbai after abolition
of merchant overtime fees. With the rise in use
of electronic and mobile platforms since July
2016, importers have been able to clear cargo
faster through simplifi ed customs procedures
under the Authorised Economic Operator
(AEO) program.
Another significant step taken by the
Indian Government has been to initiate the
Bankruptcy and Insolvency Act 2017. After
the Act’s execution, it will become easier
for companies to exit the business or even to
revive it, if required. At the same time, it will
also lessen the non-performing assets (NPAs)
burden for the country’s financial services
sector. For the corporate sector, this shall help
make liquidation or revival simpler and faster.
India’s biggest tax reform, the GST, has
2018 • INDIA-OMAN • 29