NEW DELHI: Enforcement of contract has emerged a new challenge that the government wants to tackle amid complaints from investors that their concerns on this front have not been addressed. India ranks low on this parameter in the World Bank's Ease of Doing Business (EODB) rankings and despite its efforts to address the concerns, much headway has not been made here, unlike in areas such as steps to speed up the process to set up businesses and ease exit rules through the enactment of the Insolvency & Bankruptcy Code.
Not surprisingly, the issue was flagged by investors during a meeting with start-ups last week, which was also attended by Prime Minister Narendra Modi. The ministry of law and justice has been tasked with the issue of improving enforcement of contracts, something that starts off from bundled with mobile handsets and extends to larger supplies. A task force set up under justice secretary Snehlata Srivastava has already identified the areas that need to be reformed, some of which require legislative changes. But the department of legal affairs is seen to be dithering, sources told TOI.