Manufacturing companies in India may need to fulfil 1,984 compliances under various central and state laws, 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, sources told TOI.
“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.
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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.
Source: Economic Times
