Investment Climate Improvement in East Coast Economic Corridor of India: Regulatory, Institutional, and Policy Reforms Support to Tamil Nadu
Given the importance of “ease of doing business” (EODB) in attracting and sustaining investments, the Asian Development Bank (ADB) has incorporated institutional and regulatory reforms as an integral component of its East Coast Economic Corridor (ECEC) project. The Government of Tamil Nadu requested ADB technical support on EODB for the second leg of the ECEC—Chennai–Kanyakumari Industrial Corridor.
The technical support aimed at developing and implementing the policy, process, and institutional framework to facilitate EODB for potential and existing entrepreneurs. This brief presents the baseline assessment of Tamil Nadu (prior to ADB support) taking into account the Department of Industrial Policy and Promotion ranking, feedback from stakeholders (investors, industry associations, etc.), and EODB initiatives implemented by the Government of Tamil Nadu from April 2017 to January 2018.
- The Government of Tamil Nadu has laid down an ambitious Vision 2023, to make it the most preferred investment destination in India with an investor-friendly business climate.
- The study identified policy, institutional, and process reforms to improve the ease of doing business in the state.
- The study resulted in the implementation of an online single window mechanism that ensures simplified, fasttrack processes as well as transparent and time-bound clearances to investors, supported by an enabling legislation (Tamil Nadu Business Facilitation Act, 2018).