Discussion 1 - Doing Business in India is Hard - Proposed Solutions
Key Issues Identified:
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.
9)Service tax system is extremely complex with many unknowns making compliance very hard and affects a large number of people.
Root Causes Identified:
1)No time bound decision making or clearances.
2) Requirements of EPF, ESI and Payment of Bonus Act are too stringent for MSMEs
3) Rate of interest on loans is too high. Collaterals required. This makes it tough for the budding entrepreneur to get a loan and he enters the vicious circle of the black money mongers
4) Lack of transparency and the amount of discretion the govt. employees have while granting loans, licenses etc.
5) No Customer Service/ centricity training
6) Ambiguous laws with interpretation left to the individual in office
7)Processes are not technology driven
8) Lenient reviews and no feedback mechanism to Government
Please ensure you respond to this thread. Inputs submitted as a new post will not be considered. To access this post easily, you may go to my profile and select the Resources Tab to find it.
Thanks for your participation.
Rajendra Pratap Gupta more