India must work towards creating biz friendly climate: Montek
New Delhi: India must work towards creating an investor friendly business climate as both foreign and domestic companies face hurdles in doing business here, Planning Commission Deputy Chairman Montek Singh Ahluwalia said Wednesday.
"All companies, not just Japanese but even Indian companies face a lot of hurdles because I don't think we have created a business environment in our country where people would say that there are no hurdles. We should work towards that," he said here.
Ahluwalia was speaking on the sidelines of India-Japan partnership symposium organised by Confederation of Indian Industry (CII).
He said it was a genuine issue and much of these problems arise at the level of state governments rather at the central government level.
"I generally do agree that...I don't think it is so much a problem at the central government level but I think many clearances at state government level do create problems," Ahluwalia said.
He further said the state governments should create an environment conducive enough for doing business and must look at their procedures relating to it.
"I think every state government that is interested in creating impression that it is pro-investment, should comprehensively look at its procedure and make sure that both domestic and foreign investors say that things are really cleaned-up," he added.
Earlier this year, the Prime Minister of Singapore Lee Hsien Loong during a visit here had said that India's business environment is "complicated" for investors who want policy stability.
According to a recent report by World Bank and IFC, in terms of ease in doing business, India was ranked 132nd among 185 countries.
The rankings are based on factors like starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.
The government has set-up a 21-member panel including representatives from government, industry and regulatory authorities to suggest ways for reforming regulatory environment for doing business in the country and to allay fears about perception of policy paralysis and lack of economic reforms.
On the proposed National Investment Board (NIB) to clear large projects, Ahluwalia said: "We have seen the proposal and I am in favour of it. I assume that it will soon come to the cabinet. I don't know when".
The Finance Minister P Chidambaram had also indicated last week that the proposal to set up NIB will soon come up for cabinet approval.