Doing Business in Delhi - Inputs on Solutions
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Doing Business in Delhi - Root Causes
1. Delhi has always been an expensive place to do business
2. There are no Special Economic Zones in Delhi to promote businesses
3. Lack of a single window system to obtain permits and licenses
4. Businessmen wastes a lot of time and money in running from one department to the other to obtain licenses
5. The process of obtaining TIN has not been automated
6. Small businesses are considered a high risk investment for banks and hence they ask for collaterals for giving loans
7. Delhi is the capital city with a good infrastructure. This leads to ever increasing real estate rates
8. Police/MCD officials have a lot of authority vested in them
9. The complicated tax system also leads to corruption, which make businesses suffer
10. There is a major coordination gap between the Government agencies
11. Corruption is institutionalised at all levels, including the highest levels, which creates a hopeless situation for an honest businessman
12. There is a lack of implementation of processes and necessary compliances
13. Incompetent/ unsuitable persons are allocated responsibilities in Government departments with almost no accountability
Doing Business in Delhi - Key Issues
1. Taxes are very high
2. The sales tax system has huge loops
3. Too many licenses and clearances required to start a new business
4. Obtaining a TIN number is a tough task
5. Bribes are needed to get pollution clearance certificate
6. Banks don’t give business loans easily without collaterals
7. There are no special business zones in Delhi to help businessmen with saving on expenses
8. Acquiring land for starting a business is very difficult as the real estate rates in Delhi are exorbitant
9. Police/MCD harass shopkeepers and business men by asking for bribes
10. The market associations have a lot of political influence due to which the business suffers (strikes, bandhs etc.) more