Discussion 1 - Doing Business in India is Hard - Help Identify Root Causes
Based on the posts and comments from everyone, here are the KEY ISSUES that make Doing Business in India hard:
1. The interaction with bureaucracy when it comes to starting/running a business is too much
2. A large amount of paperwork leads to a lot of delays and increases chances of corruption
3. Access to credit for SMEs to facilitate their expansion is very tough
4. Labour laws are rigid
5. The company registration is a tedious and a time consuming process as one has to run behind different departments to get different licenses/clearances
6. The rate of interest on bank loans for business in India is very high
7. A number of taxes like Sales tax, Central sales tax, vat, interstate sale obstacles like road permit, etc. are imposed which increases the cost of the final product, time spent on non productive tasks and corruption.
8. To set up and operate a business, even when doing everything by the book, one has to bribe various agencies to ensure things are not stalled.
Please feel free to add in case you think any other major point is missing.
Let us now begin the root cause analysis of the issues. Only when the root cause is done effectively, good sustainable and implementable solutions can be developed. Please provide all your inputs by COB, May 29th by responding to this post.
We look forward to your participation.
Rajendra Pratap Gupta more
1. The interaction with bureaucracy when it comes to starting/running a business is too much
2. A large amount of paperwork leads to a lot of delays and increases chances of corruption
3. Access to credit for SMEs to facilitate their expansion is very tough
4. Labour laws are rigid
5. The company registration is a tedious and a time consuming process as one has to run behind different departments to get different licenses/clearances
6. The rate of interest on bank loans for business in India is very high
7. A number of taxes like Sales tax, Central sales tax, vat, interstate sale obstacles like road permit, etc. are imposed which increases the cost of the final product, time spent on non productive tasks and corruption.
8. To set up and operate a business, even when doing everything by the book, one has to bribe various agencies to ensure things are not stalled.
Please feel free to add in case you think any other major point is missing.
Let us now begin the root cause analysis of the issues. Only when the root cause is done effectively, good sustainable and implementable solutions can be developed. Please provide all your inputs by COB, May 29th by responding to this post.
We look forward to your participation.
Rajendra Pratap Gupta more
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View all 166 comments Below 166 comments
Please clean up the books, income tax acts, sales tax acts, ROC etcetera...... Are very complex and cumbersome some even for the most seasoned professionals like CAs etc,.. Please or write the books to simplify more
Jul 01
Training MPs is a good idea; I have myself trained MPs and MLAs but they forget their training as soon as temptation stalks them. more
Jul 01
I read nearly all comments Came to conclusion that delays caused in our working system is mainly due to corruption,laziness, and postponing the issues cases, work, etc. Each individual should become disciplined,punctual, efficient in work sacrifice greed and laziness. Each indidvidual should follow honest means. Stop giving and taking bribes. In this manner our DESH shall be free of crimes and corruption. Encourage each one to VOTE> 100% Voting is only way to stop malpractices and stop taking help from Underworld. Mafias and Rapists are ruling our country This should be stopped. Thanks Vijaya http://divyajeevan.in more
Jun 20
Hello Sir, Some of the root causes for challenges faced while doing business in India are: > Weak global trade negotiations with other countries for both import and export, easy accesibility to market can be quite a challenge > Very limited incentives for innovations and providing seed capital to new business units > A lot of businessess are lead by politicians they ensure that laws are tweaked and make it extremely difficult for a normal citizen to start business, this will especially scare business houses outside India > There is a sense of goondaism today in most of the business like transport, toll tax collection, infrastructure etc which are pre-dominantly led by politicians and there agents > Crony capitalist ensure that gaps between haves and haves-not keeps on increasing think of this the cream of opportunities are taken by politicians, then next layer is taken by crony capitalists which leaves very little avenues for normal citizens to do business > Captial generation opportunities are very limited, bank loans are extremely expensive > Multiple windows for obtaining approvals to start the business, this is complicated with states often having their own set of priorities > No clear policy on land aquisition and setting up of new business units > Cumbersome documentation requirements, process is so complicated that in fact you need someone to help you with the process which is tiring and cumbersome > Touts and Agents who work hand in glove with government officials to make quick money > Many of the laws are infact made to trap business this creates a sense of fear in their minds > Corrupt goverment officials who are willing to take shortcuts Regards Kalpesh Doshi more
Jun 12
