Why is the National Single Window System struggling to meet its promise of being a one-stop shop for approvals. Indrajit Basu reports

In a nation where getting approval to build a road, launch a fintech app or start a factory still means dealing with more than 30 government departments, India’s National Single Window System (NSWS) was meant to be a game changer. But three years on, after 76,000 processed approvals and millions spent engineering the platform, business owners and legal experts alike are asking: Is the window truly open?

While the NSWS offers a sleek interface and tall promises, it has still not developed into a one-stop shop despite being launched in September 2021. Users say what one receives from the NSWS is not a clearance to get cracking, but often a digital nudge towards more paperwork, more ambiguity and more delays.

“The portal acts more like a guidance system for helping users identify required approvals rather than serving as a one-step compliance window,” says Bharati Balaji, general counsel and a director of legal and compliance at the New Delhi-based Indian Sugar and Bio-Energy Manufacturers Association (ISMA).

Take the infrastructure sector. To get off the ground, land titles still need to be validated manually. State electricity boards remain outside the system. Environmental clearances require face time with appraisal committees, regardless of what the NSWS shows on your screen.

Fintech, a sunrise sector, fares no better. The Reserve Bank of India and the Unique Identification Authority of India licences cannot be tracked or processed through the portal. The result? Legal teams continue to file the old-fashioned way, while the NSWS remains an ornamental step.

Even in manufacturing, where India wants to challenge China, the system falters. Industrial zoning, factory layout approvals and labour compliances vary by state and often exit the digital highway halfway through.

Red tape to red carpet

When the government of India unveiled the NSWS, it was hailed as a transformative initiative – a symbol of India’s commitment to the ease of doing business.

The government said the platform was designed to make the system more transparent, accountable and responsive. All necessary information would be available on one dashboard, simplifying the process for businesses. The goal of the single window system was to simplify compliance, speed up project approvals, and make it easier to start and run a business.

This is achieved through a structure that rests on three key pillars. Know-your-approvals (KYA) uses a dynamic questionnaire to identify the mandatory permits required. Second, a unified application interface allows businesses to apply for multiple clearances at once. Finally, a real-time dashboard enables tracking of applications. Together, these features aim to make the platform a one-stop solution for businesses to navigate regulatory requirements.

On paper, then, the NSWS looked like a panacea. In practice? It has helped, particularly in the initial phases of setting up a business. The ability to track approvals, identify necessary licences through the KYA tool and access multiple services from a single interface is undeniably valuable, say advocates.