BUSINESSES HIT BY RED TAPE, TAXES
In World Bank’s ease of doing business ranking, India comes 130th out of 190
NEW DELHI simplify the tax regime and liberalise rules on foreign direct investment (FDI).
But in the World Bank’s most recent chart ranking countries for their ease of doing business, India came 130th out of 190.
While much of the focus has been on the travails of foreign firms, local entrepreneurs who should be the pos-ter boys of Indian manufacturing are also struggling.
The printer that Saurabh did eventually manage to import from China to build everything from drones to robots had nearly 300 parts.
He first had to submit a sheaf of documents, including details of the exporter and the product catalogue to officials at Delhi airport.
He was then told each part would have to be tested before being let through. Three months and 150,000 rupees (RM9,787.5) in warehouse charges later, he got his consignment only after he coughed up a bribe, he said.
Saurabh launched his company Nuts and Boltz six years ago from a basement in northwest Delhi to provide other budding entrepreneurs a place to experiment with product ideas.
For an hourly rental fee, clients have access to equipment such as 3D printers and circuit boards.
But while the prototypes can be crafted in India, nearly all the manufacturing ends up being outsourced overseas.
While India’s big business houses are among Modi’s loudest cheerleaders, economist Sunil Sinha said making things at home remained a fraught process for smaller firms.
“It’s one thing to say we want to focus on manufacturing and that’s why we have liberalised FDI and that’s why we’re trying to improve the ease of doing business,” said Sunil, principal economist at Fitch India.
“But the crucial component is what’s happening at the state level, at the local level. Anyone setting up a factory or business needs water and electricity connections and various permissions and annual regulatory filings to different government watchdogs. Those are the major stumbling blocks and there are no significant changes at that level.” AFP
If my business grows, the country grows with me. But the government won’t let me grow.