Opportunities in India
Ease of Doing Business
India jumped 79 positions to reach 63rd position in World Bank’s Ease of Doing Business ranking within a span of five years (from 2014 to 2019) and continuously keeps making policy reforms to improve business set up and operations in the country. India also ranks 46th in Global Innovation Index 2021 rankings (jumping 35 places in 6 years) in which it also ranks 1st among the Central & South Asia region and ranks 3rd among the lower-middle income economy group.
The central and state governments in India have taken several measures to improve the ease of doing business in India:
- Starting a business made easier by simplification of process and paperwork, elimination of incorporation fee for large companies, digitization of forms, among other initiatives.
- Obtaining construction permits made easier through fast-track approval systems, deemed approval of sanctioning building plans within a certain time, reduction in number of procedures etc. leading to a drastic reduction in turnaround time for building permits and reduction in cost of obtaining permits by more than 75%.
- Trading across borders made easier through single window clearances, reducing customs documents required to just three, online platform to enable electronic filing of all documents, computerized risk management system and facility for advanced bill of entry.
- Legal systems for enforcing contracts strengthened with Commercial Courts and Appellate Divisions established in Delhi and Mumbai, e-filing of cases introduced in district courts and a comprehensive case management tool.
- Procedures for procuring utilities connection and registering property has been simplified and digitized.
- Several tax reforms in the form of reduced corporate tax rate, concessional tax regimes, robust IT infrastructure for filing and claiming tax returns, simplification of tax regime under a unified Goods and Services Tax (GST), and elimination of all physical touchpoints in the document submission and verification process.
Ease of Doing Business
India jumped 79 positions to reach 63rd position in World Bank’s Ease of Doing Business ranking within a span of five years (from 2014 to 2019) and continuously keeps making policy reforms to improve business set up and operations in the country. India also ranks 46th in Global Innovation Index 2021 rankings (jumping 35 places in 6 years) in which it also ranks 1st among the Central & South Asia region and ranks 3rd among the lower-middle income economy group.
The central and state governments in India have taken several measures to improve the ease of doing business in India:
- Starting a business made easier by simplification of process and paperwork, elimination of incorporation fee for large companies, digitization of forms, among other initiatives.
- Obtaining construction permits made easier through fast-track approval systems, deemed approval of sanctioning building plans within a certain time, reduction in number of procedures etc. leading to a drastic reduction in turnaround time for building permits and reduction in cost of obtaining permits by more than 75%.
- Trading across borders made easier through single window clearances, reducing customs documents required to just three, online platform to enable electronic filing of all documents, computerized risk management system and facility for advanced bill of entry.
- Legal systems for enforcing contracts strengthened with Commercial Courts and Appellate Divisions established in Delhi and Mumbai, e-filing of cases introduced in district courts and a comprehensive case management tool.
- Procedures for procuring utilities connection and registering property has been simplified and digitized.
- Several tax reforms in the form of reduced corporate tax rate, concessional tax regimes, robust IT infrastructure for filing and claiming tax returns, simplification of tax regime under a unified Goods and Services Tax (GST), and elimination of all physical touchpoints in the document submission and verification process.
Gas Pipelines
Gas Pipeline infrastructure is an economical and safe mode of transporting the natural gas by connecting gas sources to gas consuming markets. Gas pipeline grid determines the structure of the gas market and its development. Therefore, an interconnected National Gas Grid has been envisaged to ensure the adequate availability and equitable distribution of natural gas in all parts of the country.
India has an extensive gas pipeline network that ensures easy offtake of natural gas from the point of production to the point of consumption. At present, there are about 17000 km long Natural Gas pipeline network which is operational in the country. In order to make available natural gas across the country, it has been envisaged to develop additional about 15,500 km pipelines to complete the National Gas Grid and same are at various stages of development.
- Hydrocarbon Exploration Licensing Policy.
- National Data Repository.
- Discovered Small Field Policy.
- 2D Seismic Survey.
- Natural Gas Grid and City Gas Distribution.
- Refineries and Auto Fuel Vision and Policy.
- Implementation of BS-IV & BS-VI.
- Pradhan Mantri Ujjwala Yojana and PAHAL.
- Gram Swaraj Abhiyan and Extended Gram Swaraj Abhiyaan.
- Direct Benefit Transfer Kerosene.
- National Policy on Biofuels 2018.
- Compressed Bio-Gas Plants.
- Neighborhood First Policy.
- Hydrogen Policy
City Gas Distribution
Under the Petroleum and Natural Gas Regulatory Board (PNGRB) Act 2006, PNGRB grants the authorization to the entities for developing a City Gas Distribution (CGD) network (including PNG network) in a specified Geographical Area (GA) of the country. A well-connected City Gas Distribution network is essential to drive natural gas offtake in the domestic market. India has an extensive City gas distribution network that is growing rapidly.
As of 2021, India had 7.9 million PNG connections as part of its CGD network. The number of PNG connections has grown at a rate of about 20% per annum over the last 5 years from 3.2 million in 2016. India’s CGD network also consists of more than 3,000 CNG stations which have grown at a rate of 23% per annum over the last 5 years from just about 1,100 stations in 2016.
A major addition to the gas distribution network in India is the Pradhan Mantri Urja Ganga project – a major gas pipeline project that will cater to the energy requirement of five states in India. The project announced in 2016 covers a total length of 2,600 km. It aims to provide a stable and cheap source of fuel for the households in the states of Uttar Pradesh, West Bengal, Bihar, Jharkhand and Odisha. The government also plans to create 25 industrial clusters in these states which can utilize the gas as fuel and generate employment in these areas. As a consequence of this scheme, not only households but about half a million vehicles are estimated switch over to CNG as a fuel.
Logistics Infrastructure
India has taken large strides in improving its logistics network and supporting infrastructure. A host of new initiatives in this direction is set to improve the ease of doing business and attract investment to India.
The National Infrastructure Pipeline 2019-2025 is one such initiative to provide world class infrastructure across the country. About 7,000 projects totaling a budget of $1.5 trillion have been identified. Sectors such as Energy (24%), Roads (18%), Urban (17%) and Railways (12%) amount to around 71% of the projected infrastructure investments in India – significantly improving the logistics infrastructure in the country.
Additionally, the National Industrial Corridor Programme has identified 11 industrial corridors between major cities in the country. This programme intends to drastically improve the infrastructure and logistics connectivity between these cities.
With Indra Dhanush Gas Grid Limited (IGGL), initial steps have been made to leverage North East regions of India Hydrocarbon potential. This project will also enhance access to clean fuel and accelerate growth in the region. As a part of this project 1650km+ pipeline will be laid out connecting eight north-eastern states. The pipeline grid has been designed with flexibility for gas injection in either direction. Construction activity for the priority section have commenced in 2021.
The Union budget for the year 2022-23 has also earmarked funds for expansion of the country’s logistics infrastructure. The National Highway network is set to be expanded by 25,000 km in 2022-23. The railway network is to develop 400 new-generation trains in the next 3 years while maritime trade is to be bolstered with an addition of 100 new cargo terminals.
- Hydrocarbon Exploration Licensing Policy.
- National Data Repository.
- Discovered Small Field Policy.
- 2D Seismic Survey.
- Natural Gas Grid and City Gas Distribution.
- Refineries and Auto Fuel Vision and Policy.
- Implementation of BS-IV & BS-VI.
- Pradhan Mantri Ujjwala Yojana and PAHAL.
- Gram Swaraj Abhiyan and Extended Gram Swaraj Abhiyaan.
- Direct Benefit Transfer Kerosene.
- National Policy on Biofuels 2018.
- Compressed Bio-Gas Plants.
- Neighborhood First Policy.
- Hydrogen Policy
