Mumbai's real estate sector is advocating for the implementation of Ease of Doing Business (EODB) 2.0 to unlock its full potential and contribute more effectively to the city's growth. This call for action reflects a unified voice within the industry, emphasizing the need for streamlined processes, greater transparency, and constructive engagement with municipal authorities.
Several real estate associations, including CREDAI-MCHI, NAREDCO, BDA, and PEATA, recently convened a meeting with Municipal Commissioner Shri Bhushan Gagrani to discuss policy issues and procedural bottlenecks hindering the sector's progress. A significant outcome of this collaborative effort was the announcement of a steering committee. This committee, comprising representatives from the aforementioned real estate associations and officers from various departments of the Municipal Corporation of Greater Mumbai (MCGM), aims to meet bi-weekly to address key issues, discuss policy matters, and explore opportunities for Mumbai's real estate sector.
Shri Sukhraj Nahar, President of CREDAI-MCHI, emphasized the industry's commitment to working with the BMC to create structured mechanisms that ensure regular dialogue and timely resolution of issues. Shri Rushi Mehta, Secretary of CREDAI-MCHI, highlighted the importance of regular engagement with civic authorities to unlock the real estate industry's full potential as a key growth driver for Mumbai.
The Economic Survey for FY25 has also underscored the importance of state-led initiatives in improving business conditions. It suggests that EODB 2.0 should focus on fixing the root causes behind the difficulties of doing business, advocating for reduced compliance burdens and risk-based regulations. States should analyze the cost of each regulation under their domain and liberalize standards and controls.
EODB 2.0 is envisioned as a means to address regulatory inefficiencies at the state level, fostering a more competitive and investment-friendly environment. This may involve revising licensing norms and modifying regulatory thresholds. The government is also considering centralized regulation in sectors with higher risks or where self-regulation has fallen short. The Union Budget 2025 took a step in this direction by establishing a High-Level Committee for Regulatory Reforms to review non-financial sector regulations, certifications, licenses, and permissions.
The implementation of Self-Regulatory Organizations (SROs) for peripheral compliances could provide businesses with an opportunity to self-regulate and enforce standards with minimal government intervention. A shift towards risk-based and need-based regulation is also crucial.
To facilitate EODB 2.0, crowdsourcing suggestions and ground-level assessments of the impact of citizen and business involvement will be encouraged. The government's aim is to achieve "minimum government and maximum governance". Overlapping compliances will be removed through standardization, and central and state-level systems will be integrated through IT bridges to provide single-point access for citizen-centric services.
While deregulation is seen as a key driver of economic growth, experts caution against excessive deregulation, which can lead to market imbalances without appropriate oversight. A cautious approach with robust safeguards is necessary to avoid potential negative consequences such as resource exploitation and systemic risks.
