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Relevance: Significance of digital empowerment of States

Synopsis: States must increase the adoption of digital technology to boost the overall ease of doing business. Presently, despite many initiatives by central government, states lag behind implementing digital solutions, resulting in a low ease of doing business.

What is e-Rupi?
  • This pre-paid voucher is provided directly to beneficiaries via a QR code or SMS.
  • It doesn’t require an internet connection, a smartphone, or an app, and, most importantly, is person and purpose dependent.
  • The service provider gets paid in a timely manner but only after providing the service such as medical care, medicines, nutritional support, books, subsidies, etc.
  • It is done by redeeming the e-voucher that’s been paid for by the sponsor, such as the government, a philanthropic foundation, or a private- sector Corporate Social Responsibility initiative.

Despite the launch of various digital initiatives like e-RUPI, the ease of doing business in states lags behind due to varioud issues.

Issues
  • Model laws prepared by centre, but implementation left with states as they see fit.
  • Poor digital capacity of states: States have complex and tedious procedures to register a company involving filling of too many forms, resulting in an increased compliance burden. This also results in huge amount of productive time being wasted.
Way forward

Hence, the digital capacity of states in terms of their awareness and readiness to deploy solutions needs to be significantly enhanced for the benefits of digitization to flow to businesses.

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