Every year, many people come forward to start a business in India. But when starting a business at the local level, a new entrant into the business has to face many restrictions and problems. This reduces people's interest in business.
It was found that many restrictions related to land, building, electricity, etc. significantly affect businesses. This year's Economic Survey pointed out that business-friendly policies should be formulated and necessary steps should be taken to bring more business to India. The survey also says that the central government, state government and local bodies should work towards this by removing restrictions applicable at the local level.
By reducing the cost of doing business, more investments come into the business. This leads to more people being employed, business income increases and thereby improves India's economic growth, said Ananth Nageswaran.
The economic survey highlighted India's heavy dependence on China for products. It pointed out that always relying on one country for products will be a problem for India's growth in the future. One solution to this is that Indian businesses should attract more investment and increase domestic production.
The survey pointed out that the current system of limited working hours is not conducive to economic growth. It suggested that flexible working hours are needed. It is also suggested that the schedule should be followed in a way that allows for more working hours as the demand in the workplace increases.