India Inc wants another ‘GST-like’ Council for centre-state cooperation
Ease of doing business is important, but the speed of doing business is equally crucial, said R. Mukundan, the newly appointed President of the Confederation of Indian Industry (CII). He also proposed the creation of another Centre-State council on the lines of the GST Council.
Mukundan, who is also the Managing Director of Tata Chemicals, took over as CII President last month. According to him, a major reason for delays in investment proposals is that they often get stuck in lengthy approval processes or become entangled in red tape at the state and local levels. His proposed solution is a council similar in structure to the GST Council.
In an exclusive interview with The Week, Mukundan explained his idea, saying, “For future readiness, I think we want to draw the example from the GST Council. If you look at one centre-state collaborative change which has been massive, I think that would be the GST Council.”
He suggested forming a GST Council-style cooperation body comprising ministers and senior bureaucrats from both the Centre and the states. The objective would be to improve coordination on matters falling under the Concurrent List of the Constitution, which includes 52 subjects such as education and marriage laws under the Seventh Schedule.
“When I speak about factor reform, foundational reform, one future-ready reform could be that we need to (form such a council) wherever it is a concurrent subject, wherever Centre and states are involved,” Mukundan said.
