New Delhi: The Department for Promotion of Industry and Internal Trade (DPIIT) recently completed the first-ever ‘cost of regulation’ study aimed at evaluating the cost of services across states and union territories (UTs), according to Industry Secretary Rajesh Kumar Singh.
Singh emphasised that the study is not intended as a ranking exercise, highlighting the DPIIT’s goal of enabling states and UTs to conduct self-assessments, to identify variations in the cost of regulation across regions and prompt measures to reduce these costs.
The DPIIT has compiled a comprehensive dataset covering various sectors, allowing states to gauge the impact on their ‘business-friendly reputation’ without politicising the issue. The study includes critical areas such as liquidity, building permissions, environmental clearance, and associated fees across 13 sectors.
Singh disclosed that the findings revealed substantial variations in the average cost of regulations across the country. For instance, in one state, the average cost for accessing these services may be Rs 50 lakhs, while in another state, it could be as low as Rs 15 lakhs.
Speaking at the Ficci’s 96th Annual General Meeting, Singh disclosed that the assessment covered a period of one and a half years, resulting in an overall cost of regulation amounting to almost Rs 17,000 crores. Despite the significant impact on businesses, the detailed study is yet to be made public.
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