NITI Aayog Research: Cost of Doing Business in India

New Delhi, Dec 17 (PTI) Government think tank NITI Aayog has invited expression of interest for undertaking research on 'Cost of Doing Business in India' (CoDB), as India faces strong competition from countries like Vietnam, China, and Indonesia, which offer lower operational costs in key sectors.

In a notice, Niti Aayog said the cost of doing business is a pivotal factor influencing the competitiveness of an economy, encompassing the expenses businesses incur to establish, operate and expand.

"For a rapidly growing economy like India understanding these costs is essential to fostering a conducive business environment and attracting investment.

"Despite India's significant reforms to improve its business climate, it faces strong competition from countries like Vietnam, China, and Indonesia, which offer lower operational costs in key sectors," it said.

According to the notice, in the wake of the pandemic, shifts in global trade, investment, and supply chains, coupled with growing concerns about economic and supply chain security led to strategies like China+1, compelling countries like India to implement bold measures to attract foreign direct investment (FDI).

"A comprehensive analysis of CoDB, including factors such as labour, capital, land, utilities, and regulatory compliance, is crucial for assessing an economy's investment climate," NITI Aayog said.

It further said this evaluation will not only help policymakers optimise regulatory frameworks and tax policies but will also enable the creation of incentives to reduce operational costs, thereby enhancing productivity and fostering innovation.

The Aayog said the objective of the study is to assess CoDB across key sectors to identify areas for reform that can reduce expenses and enhance India's global competitiveness.

The estimated timeline for completion of this research study is four months, including research work, analysis and report writing.