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Doing business in India is quite difficult
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Bikky Khosla | 06 Nov, 2013
Indian small and medium enterprises have to comply with 12
procedures and it takes on average 27 days to start a business. Dealing
with construction permits involves 35 procedures and a 168-day waiting
period, getting electricity involves 7 procedures and a 67-day waiting
period, registering property requires 5 procedures and a 44-day waiting
period, and for resolving insolvency it requires a company to wait 4.3
years. These are statistics revealed in World Bank's 2014 'Doing
Business' report.
In the report, subtitled 'Understanding
Regulations for Small and Medium-Size Enterprises', India ranks a lowly
134 in the ease of doing business index, but I fear the real situation
is even worse than this, and I would greatly appreciate if our readers
kindly give some feedback on this. Does it require a small businesses
overcome more hurdles than those mentioned by the report? Isn't it
possible for us to follow the model of even small countries like
Singapore, Hong Kong, Taiwan, Malaysia and Norway in creating a
business-friendly regulatory environment?
The same report says
that an SME needs to collect 9 types of document, including Bill of
Lading, Certificate of Origin, Commercial invoice, Foreign exchange
control form, Inspection report, Packing list, Shipping Bill (customs
export declaration), Technical standard certificate and Terminal
handling receipts, and it requires on average 16 days to export.
Similarly, import procedures involve 11 documents and a 20-day waiting
period. In Singapore, it requires only 3 documents and a 3-day waiting
time and for exports and 3 documents and a 4-day waiting time for
imports.
Besides red tape and bureaucracy, corruption is often
cited as one of the biggest challenges to the Indian SME sector's growth
story. For excise registration : Rs. 25000 with application and Rs.
20000 for issuing of certificate, monthly return submission Rs. 1000,
yearly audit of excise and sales tax: Rs. 50000 or above as per turnover
- these are the amounts of bribe demanded by government officials -- an
entrepreneur informed me last year. Such a situation is really
pathetic. We must free ourselves of this shackle of corruption.
Recently,
our Finance Minister P Chidambaram has said that our current account
deficit (CAD) would come down, but he has also expressed concern over
dull investment sentiment due to sluggish economic recovery, but I think
this challenge can be addressed to a significant level by improving the
business environment and making it easier for foreign businesses (as
well as domestic businesses) to do business here. Mere FDI measures will
not help attract investment.
I invite your feedback.
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Doing business in India is quite difficult
S.Ratnam | Mon Dec 9 16:16:15 2013
Having worked and done business in India(14 Years), worked in the Middle East for 17 Years and working in the United Kingdom for 11 years , i fully agree to the contents of this article. You have not brought out the full amount demanded by Central Excise, Sales Tax and Income Tax authorities. My question is " Whether we be able to compete with other developing nations in the coming years".we have to shed blood for improving business and to donate amounts to departments. Even with no irregularities we have to give the demanded amounts? What a pity! Where will our young generation would go!!
Mukhtar alam | Sun Dec 1 08:44:40 2013
Absolutely right. Is Mr. Chidambaram reading it. Please make it possible at the earliest. There should be hassle free procedures in interest of our country and people.
Bribe and lack of patriotism
Faisal | Wed Nov 27 03:00:13 2013
Nice article still missed few points. Better privatise or outsource the port activities.
Feedback on doing business India
Rama Krishna P | Tue Nov 26 22:24:14 2013
Corruption and lifeless process are the biggest hurdles. Plus, the government employees do not understand the urgency of the business. They show careless attitude.
This should change to foster good business climate in our country.
Doing business in India is quite difficult
Pankaj Kapadia, Toronto, Canada | Thu Nov 21 06:39:50 2013
The Article facts are right. Such business environment are also known by NRI business people. Who often wish to do some business in India, but they do not want to do any business or Manufacturing in India because of all these problems.
The fact even Indian origin NRI Business Community can not tackle these Indian Business environment than how can you think about Non-NRI other Countries Citizens for doing any Business in India?
Look at CHINA. Inside China all over the world's many Countries are staying & Doing Business with any Govt. & Official harassment or Corruption.
It so shameful that despite there are so many brilliant NRI residing in other countries, India is unable to get benefits
of their Expertise.
India has mis-use it's Democracy. India need China Style very Powerful leader who is very knowledgeable, wise and also very Honest. Otherwise India will need another 70 to 80 years to come on the 2013 level of CHINA or other Counties like South Korea, Singapore etc.
Such leader is only one at the present time and which is Narendra Modi by highest world Standard. It will be bad luck for people of India if they can not use only & only such powerful,Honest,wise & foresight person.
From Where Bribe starts
Vijay Goyal | Wed Nov 20 02:53:47 2013
After Filing On line returns Excise & Sales Tax department is asking hard Copy Paper print of monthly returns these are the measures point to start corruption.
I think their should be detailed procedural Guide line taking with examples what any one can do in business is allowed. In our country even all consultant all also not clear with law & they are finding fallow of law only.
Doing business in India means putting ourself into trouble
Bhagawath Prasad | Fri Nov 15 18:40:19 2013
Well said article.
Kamaljit's narration is absolutely true , SMEs spend 3/4th of their time replying to notices given and gasping to understand on issued demand notices by, Sales tax , service tax , excise , income tax , esi, PF , EB , citi corporation, mobile squads , checkpost held goods to get released, import ,export compliance etc...etc....,remaining energy goes into repaying for term loans.
Manufacturing of quality goods and services and selling them are far easier than attending to regulatory body and tax collectors demands,one should not enter into business , if one is not good enough to understand our country's complicated system.
Top companies don't pay in time for goods and services procured due to their complex bill processing system kept in their companies , hence SMEs barrow money from banks and go for paying taxes on specified dates on-line , then comes confusion with their servers being down and don't accept payments , since not paid in time penalty notices with interest comes , no ears to listen to server issue , therefore assumed profits kept in supplies goes out in paying interest to banks , tax authorities and penalties , thereby SMEs remain in debts and finally gain ulcers , heart burns , tensions leading to high blood pressure and diabetic rich .
Doing Business in India means putting ourself into trouble.
P.Ullatil | Tue Nov 12 16:39:33 2013
I really agree with the above article, I myself experienced the difficulty of doing business here. And am a victim of the same.
The worst thing I noticed is the complicated procedures of our system of filing various types of Taxes and other fees, which left open many loop holes for the officials to make money by demanding bribe. They doesn't want us to do a fair business or to keep a proper record. They never believe our statements and always treating us as culprits without enquiring about the actual scenario.
The worst is the sales tax & income tax department, they just assume things from the air and asses the taxes for years and years with fine penalty and so on as they wish, without trying to understand the real scene. A friend of mine has lost his hard earned house because of doing business here in India, even after his business was closed due to heavy loss, the tax people chased him for years and now he even lost his hard earned house on account of tax areas and now living in a rented house.
The important thing I have to highlight is the complicated procedure for filing different taxes, please make it very simple, so that every one who has got a net connection can file it them self. And my humble request to the authorities, please don't ask anybody to bring all the books and ledgers bills etc..etc like to sales tax office, which is not at all practical since most of the accounts are maintained in computers.
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Re: Doing Business in India means putting ourself into trouble.
Kamaljit Singh | Wed Nov 13 11:49:20 2013
Agree with you
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Re: Doing Business in India means putting ourself into trouble.
Vijay Goyal | Wed Nov 20 03:08:04 2013
Why we have need to file a separate yearly return with Excise, sales Tax, Services Tax & income tax department. why these can not take not file with income tax department and from their all department can get eases online from their. Doing this valuable time & money will save & entrepreneurs can expand their business.
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Building permit from Town Planning department - red tape
Sajeev | Tue Nov 12 12:06:16 2013
Dear Sir, You said one thing is exactly correct, that is doing business in India can develop our economical crisis.But how.I am from Kerala.For last one year , I have been trying to get a building permit from Town Planning department for starting a plastic manufacturing unit.But they are deliberately delaying it.Till date, we didn't get the sanction.Every time they are giving notice by mentioning some drawbacks.If we clear the drawbacks, then another points raised.In this situation , how can we start a business in India , Especially in Kerala.Pls guide me.
Doing business in India is completely under the mercy of government staff is very difficult
sagala kasi viswanath | Tue Nov 12 07:31:15 2013
In this country we do have leaders to increase their party size not to see the developments of people,till now no government has taken strong action to punish their staff who are corrupted, they are defended by themselves. Whatever efforts taken by any SME to do business, major earnings are spent on expenditures like the formalities of government which includes bribe etc.It is silent suffering for many of SME
Doing business in India is quite difficult
Atul | Mon Nov 11 06:55:16 2013
It is so difficult that the person involved does not become free to do business from commitments towards, tax returns, service tax returns, income tax returns, insurance, bank work so on and so forth.
Govt should nationalize every business
Rajesh Kumar Tenany | Sun Nov 10 15:15:30 2013
Govt should nationalize every business, banks, institutions and experience the difficulties in business and then they will realize what rules are to be made. Everyone should be employed without salary. govt. should provide everything i.e. shelter, food, medical, education, clothing, petrol, spending holidays etc. There will not be any coalgate, 2g, 3g, no Swiss bank accounts, no personal accounts. Now it is too late for the govt. to do any reforms because all tax collections goes in salary, facilities, subsidies, pensions and free passes etc.to be exact India is moving not by govt. employees/ministers hard work. But balance left over citizens, and kept in the category of waste.
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Re: Govt should nationalize every business
Sudarsahan | Thu Nov 14 03:07:02 2013
It appears that you believe government has anything to do with solving problems of business or any honest working persons.
All of them may not be corrupt,but they all believe firmly in Socialism and think that business grow by exploiting poor and hence they think they are "morally' entitled to not only extract as much as possible but also put hurdles, as such acts show these idiots as "poor friendly".
Only answer to this problem is to question the morality of Gandhian socialism and that socialist policies help poor.
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Failed to launch my business
Cathy Ferrett | Sun Nov 10 10:12:16 2013
I totally agree with this. I was trying to launch my own small business providing small solar products to poor people in hot countries. I wrote to dozens of Indian companies asking for details of their products, their prices and shipping costs. I didn't get a straight answer from anyone - especially I didn't get prices, which I really needed for my business plan. Consequently the business never got launched, as I wanted to do business with India and not China. But no longer, I am going to launch my business later and I will do business with China as I was so frustrated with the lack of communication and understanding of my needs and people saying they will do something and then do nothing.
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Re: Failed to launch my business
Atul | Mon Nov 11 06:56:15 2013
Absolutely agree with you sir, level of commitments to deliver do not exist in India.
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Doing biz in India -dificult
K.C.Aggarwal | Sat Nov 9 14:43:46 2013
I don't think you ever got so much feed back and comments on any subject like his so far??
Years back, I got an intrn'l financial organization which could offer from min. 5 million up to 500 million US dollars as loan @ 2 % more than LIBOR rate. Procedure was simple but very difficult for India as even State Bank of India's guaranty was not acceptable and 100 Intn'l banks which were acceptable were not willing to stand guaranty for 10 years loan re-payment as none trusted Indian Govt. politicians and SBI. Some how for SCI I got them interested. Procedure was interest as above and 3% initial payment as an escrow account to prove capability of financial ability and standing. Interest was to be paid on 1st day of next year start. So what happens, the then finance minister of India asked that 3 % to be instead given to him. I would not WRITE THE REMARKS OF LENDERS WHICH I GOT THEN AS I WAS TOTALLY ASHAMED OF BEING AN INDIAN IN THAT SITUATION. SAME THING HAPPENED WITH SADDAM HUSSAIN OF IRAQ. TODAY THAT FINANCE MAN IS MOST IMPORTANT CITIZEN OF INDIA - A BIG B, BEING PRAISED BY MDM ITALIANO and her tribe. If Modi comes to power, I have doubts if he could bring back any of billions kept so sophistically out of the country. Some months back a friend told me about Rs. 1000 crore to be kept /invested from a one year's CM . I told him not to touch even if he is being offered 15%. I know these games of Indian Political Bastards from last 40 long years.
SME finance 100% agree
Mr.Mahesh Ch Mishra | Sat Nov 9 13:04:14 2013
I 100% agree with your editorial that it is impossible for a expert having excellent entrepreneurial qualities can not initiate a small scale or medium scale with all requisites. I dare to openly declare 90% corruption prevails in all banks & financial corporation in India thus misinterpreting standing govt & RBI rules & guidelines.They make public fool in this regard before thinking the economy of the country.I have 40 years experience as an entrepreneur & a victim of such red tapism & corruption camouflaged.
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Re: SME finance 100% agree
Atul | Mon Nov 11 06:57:25 2013
VERY VERY TRUE AND THINGS DONT SIMPLY WORK OUT FOR THE SME
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Corruption at every level, even if your records are OK
R Kannan | Sat Nov 9 13:03:17 2013
As you rightly said, corruption at every level, even if your records are OK; it is a sad thing. Even for simple change of name, it takes months because each dept. need their own time (even after making payment. There is no accountability for the govt. officials. Too many Govt regulations, which are NOT enforced or enforceable and still one will have to pay the official fees and unofficial fees.I think we need another EMERGENCY, or a Dictator.
Govt talks of Small units only on paper
R.K.Maheshwari | Sat Nov 9 08:39:01 2013
Govt says SME role is of importance to generate jobs.A small scale unit which employs 20 workmen has to undergo all the pains of statutory obligations as that of medium or large units.It requires additional manpower to meet these requirements and often the entrepreneur is stuck dealing with govt. agencies than using his technical skills.Govt it seems talks of Small units only on paper, otherwise it is bent upon wiping off the small scale sector.
Increase the Excise Exemption Limit
Vinay Kapoor | Sat Nov 9 06:58:04 2013
It very much true and Bribe figures are very much correct. My Suggestion to all concerned peoples and FM is to raise the excise exemption limit from 150 Lacs to at least 300 Lacs, so that at least small tiny scale industrialist can save the cost incurred or Excise department and Excise consultants
Comment
Deepak Nopany | Sat Nov 9 04:17:13 2013
I find it interesting that you should ask for a feedback regarding ease of doing business in India. Or rather it should be renamed as Difficulty in doing business in India, since there is no ease. I am a small business owner in Kolkata and pioneered the export of Ornamental fish from India. In retrospect , I wonder why I didnt move to Malaysia or another nearby country, where I could have increased my business by a 100 times, simply because of the obstacles which we face in everyday business life,'by archaic laws and stubborn government people.
Just to give a small example : I wanted to import ornamental fish into India, because our country needs broodstock to produce exotic species of fish. My application ran into over 1500 pages and it took over 1 year to get an import permit which allowed only 8 species to be imported and that too from just one country. In Malaysia, Thailand and Singapore, and for that matter , in most countries of the advanced world, no import permit is required and the procedure for import takes just a day at the most.
I fail to understand why our policy makers first make speed breakers and potholes and fill up the remaining area with a road. It seems designed for cars to fail and drivers to give up after travelling a short journey. Hats off to those that made it big, because they are truly exceptional people . Should systems be designed for exceptional people to succeed , or for normal people to succeed ?? Mr Chidambaram could perhaps hold meetings with small business people rather than stalwarts of Industry, if he is to really find out what afflicts India and why we cannot even compare to Thailand or Malaysia or even some African countries.
Doing business in India can at best be described as walking the treadmill. You're moving , but getting nowhere, and they keep increasing the Gradient so you got to work harder to get nowhere.
Fraction of whole story
B.B.Pendkar | Fri Nov 8 19:23:16 2013
Dear sir,
With due respect to our country's great cultural heritage and a globally acclaimed,praised spectacular event of our Independence fought with the weapons of Ahinsa, Satyagrah, present state of the total social mind is so pathetic and unbearable that whatever you have mentioned regarding business, in particular SME's is fraction of whole story.No more to pen.
No single govt. dept. which aims for helping any industry
RP UPADHYAY | Fri Nov 8 18:00:45 2013
Dear Sir,
We agree with your views and we think this issue must be raised strongly. There is no single govt. dept. which is meant or aim for helping any industry instead this dept. are big hurdles for industrialists. Like in MP the issue of environment clearance for Minor Minerals (Mining sector) is not at all proceeding from the last 1 month. There are no guidelines what has to be done & who has the power to clear the issue. Everyone is concerned for the environment but it should be in a right and legal way.
The current process for obtaining clearance from govt. dept. is if u does not get NOC from the following departments your licence for running the industry will be terminated and a fat amount of bribe has to be given for getting NOC. Instead it must be opposite if an industrialist has not completed the required formalities then the concerned officer has to be suspended. Then the scenario will be totally changed all the government departments will work like rocket. Single window system must be there, If u imports goods made in china you do not require many formalities and no departments are involved in it but if you are planning to establish a manufacturing unit then N number of NOC’s required. There is no sector based single book of guidelines for manufacturers like what are the process for establishing manufacturing unit in following sector and what are the Laws has to be followed.
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Re: No single govt. dept. which aims for helping any industry
Vijay Goyal | Wed Nov 20 03:34:35 2013
Find the reason Why every one to Do Government Job . The answer automatically come Scope of Bribe/corruption
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What I learnt from experience
SHRIPAL | Fri Nov 8 14:28:47 2013
MY 25 YRS OF EXPERIENCE CONCLUDES AS FOLLOWS:
25% TIME WASTED IN UNWANTED RED TAPISM,
50% OF INCOME SPENT ON TAXES AND BRIBES AND UNWANTED CSR ETC.
ALL YOUNGER GENERATION AND 1ST TIME ENTREPRENEURS SHOULD STAY AWAY FROM INDIA.
Fantastic India!
S.Jayakumar Chennai | Fri Nov 8 13:36:19 2013
The fact all mentioned are absolutely existence in every way of government department.
The Time of India/CNN channel should call Mr.Chidambaram, ManmohanJi, Modiji, Advanji, and all top political Netaji on table and also top bureaucrats who are very important to make on spot solution to stop this hurdle for any business community.
Otherwise no shining India and No chidambaram or whoever can not help India downtrend.
As
you are in the line speak to this Powerful news channel to do this job.
We can only put message like this for our satisfaction but nothing will improve.
Only media can call all this TOP brass on round table to make some change.
I fully agree with your lines
M. Chandra | Fri Nov 8 10:56:52 2013
I fully agree with your lines. I assure that if the RED TAPISM and BRIBE for every business activity could stop, than we have no need of FDI. Our Businessmen had enough money as well as courage & skill to run any business but the main hurdles are as Corruption in Govt Officials and RED Tapism.
Actual situations are still worse
M.Ramesh Babu, M.E. (R | Fri Nov 8 08:13:18 2013
I think you very polite and soft in putting the facts. The actual situations are still worse. Every one feels why we have started business. In the days to come, the number of business people will decrease and some other ways of doing business will rise out.. Thanks for the letter.
Like to add something more
DINESHSINH CHAVADA, Director-Sanginita Industries Pvt. Ltd.,Gandhinagar,Gujarat. | Fri Nov 8 08:10:38 2013
I do agree with you. But I would rather like to add something more as an entrepreneur. Here instead of getting friendly atmosphere for industry, entrepreneur has to do struggle with all govt. departments.The attitude of officials has become so extracting towards entrepreneurs,that they never understands his difficulty.As soon as they see him, they think that they have got "A milking cow". It is to be noted that, the subsidy schemes are somewhat lengthy and complicated. Really those are required to be helpful at the initial time of business,which are materializing after a long time of business implementation.It is surprisingly to be considered that the issues are being faced by the real entrepreneurs.Fake people manage their subsidy processes quite easily. It is necessary to make the Industrial Policy somewhat simple and on the bases of practically implementable grounds and rules-regulations. Actually the MSME require the bank lending at a cheaper rate of interest. But the large industries are benefited with lower rate of interest whereas MSME sector has to bear the higher rate of interest. Now the measure point which has made the starting of new industry next to impossible is the very high rates of industrial land.A new industry require minimum of Rs.2.5 Cr ( Land 1.25 construction 0.75 machinery 0.50) investment.Right now the GIDC process of allotment land at a suitable industrial area is not in force.
Fully agree with the subject
Kaushikk Vyas, Tech. Diector | Fri Nov 8 08:07:43 2013
Sir, I fully agree with the subject and have concluded that one who sells a product to China can sell all over the world but the one who can sell in India can sell in the whole of Brahmand.
It is our experience no Indian manufacturer wants to do something new, or even when we ask them quote hardly send quotation for export. If at all give it then it will be in rupees, in- spite of explaining this is required for Export. Only GOD CAN MAKE US RECOVERED FROM THIS MINDSET AND ECONOMICAL CRISIS.
Elephant teeth
Er. P.K. Bansal | Fri Nov 8 08:06:06 2013
Not only excise, but every department is busy in snatching money from SMEs. Finance ministers concern about economy is only elephant teeth. Actually neither the political leaders nor bureaucracy wants that this country grow. If the government wants to see SMEs grow, they should create only one department and one type of tax. Government should also follow the time limit guidelines for issuing permissions to SMEs
Thanks
A K Sharma | Fri Nov 8 08:04:13 2013
Sir,Thank you very much for this information! To promote you, I always post your these type of valuable comments on FB with the name of your organization.
ADDITIONAL LICENCES
RAJENDRA | Fri Nov 8 07:50:59 2013
Very well mentioned, thanks for giving opportunity to share. Apart from licenses you mentioned, depending on business one may have to take shop and establishment license, food license (mfg/ pack/repack/storage/trading)drug license,insecticide license. If one is opting for finance from banks / finance inst, then just add additional time & money involved for each license. But I feel we are just sharing our experience, instead we must do something to overcome all this hurdles , then only this forum will be useful, otherwise we are likely to follow what is going on for years.
Deep rooted corruption
A P Sensharma | Fri Nov 8 07:34:38 2013
Sir,
It is crying in the wilderness when one speaks of wiping out corruption. Our slavery to foreign rulers for five hundred years or so has completely destroyed our characters. Huge class differences, heterogeneous social fabric, imbecile attitude, unlimited indolence and greed have taken its toll in our socio-economic structure. There is no possibility of reversing these vices unless there is some drastic change through genocide or civil war. The entire system needs ruthless surgery.
As ur mentioned subject.
S. Ganesh | Fri Nov 8 07:14:24 2013
This much opinion you got what you have done? Just taking opinion not a single new step from your side if yes send me copy on everybody's mail.
How to bring changes..
Manu | Fri Nov 8 06:54:17 2013
Sir, I do agree with you and the facts and figures you have pointed out is something much interesting and informative. But I don’t think the subject we are discussing is something new. The kind of red-tapism / bureaucracy that is existing in the system is been followed for years. It should be recognized that there are some improvements in last few years, but I really doubt if it will still help us to be a front runner in the sprint towards a developed country/strongest economy. I believe it will be really interesting if experts like you can suggest some solution for this problem .Moreover how such suggestions are successfully implemented and strictly monitored so that it becomes a culture.
Does the change of governments would help, if young bloods in the political system can make a change, amendments in our country’s law with more severer punishments for corruption would make a difference or a “till result “ protest by the business community etc can make it happen. Please suggest, I would like to be part of the revolution that would bring the big change.
Difficulty faced by us
Nimesh | Fri Nov 8 06:28:07 2013
We recently decided to start new firm,when i want in bank for opening current account of Proprietorship firm they demand 2 entity proof, i do not understand how a new firm can get entity as they have denied to accept Part II of Small Scale Certificate(SSI) along with Charted Account Certificate as an entity proof as we are going to do business of Export thus we had not applied for Vat or Others as it is not needed,such difficulty is regularly phasing by businessman but our Bureaucracy are not understanding the problem.
Basavaraj | Fri Nov 8 06:22:21 2013
Most of us know these facts by experience.
Whether our policy makers and ministers are aware and are serious enough to fix the problem is what really matters.
I believe this write should reach PM and FM and other policy makers and get them to understand and act on reality.
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You can WAKE-UP only a man who is really asleep.
R Kannan | Sat Nov 9 13:27:01 2013
You can WAKE-UP only a man who is really asleep. Not the one posing as if he is sleeping or unaware of what is happening.
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Corruption
Philip G Ittyerah | Fri Nov 8 06:15:44 2013
Both Business and Statutory Bodies (Govt) are to blame for the present state of affairs. A complete clean-up is necessary. Computerization has not helped much, for who has the time & patience to audit transactions and time taken to complete them. Corruption is directly proportionate to the delay in clearance from time of submission of application and date of clearance. If there has been a delay in clearance there must have been corruption or expectation of it and concerned staff should be prosecuted by special courts. If documents are already existing from previous transactions then fresh documents should not be called for because the computer already has them. The first time compilation of documents for any company would take time, say, three days, after which these documents need not be submitted. Discretionary powers should be limited to only the topmost officer and if exercised more than once for any company, the officer should be prosecuted. The list is endless. Any new legislation should be as a replacement of the existing legislation and not in addition to it. I could go on and on. Subsequent Govts are reluctant to change the status quo as they lose an opportunity to gain speed money. There should be a mindset change of all the parties to a transaction because policing can help very little. Rules and regulations should be formulated to exclude voluminous submission of documents and correspondence. There should be Objective type of forms with few attachments.
We face the same difficulties
B M Aravind | Fri Nov 8 05:13:48 2013
We are in manufacturing of components and exports. We face the same difficulties as described by you. In addition we ave faced enormous problem in closing the licences we obtained for importing material. We now pay all the taxes and import the material as well as capital equipment to avoid harassment. Our exports are in the region of Rs 6 Cr per year in a total sale of Rs. 30 Cr.
Doing business in India is quite difficult
Ravindra Raghuwanshi | Fri Nov 8 05:04:41 2013
Every word is true and figures are also 100% correct. Please send the copy to FM.
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Re: Doing business in India is quite difficult
Basavaraj | Fri Nov 8 06:30:08 2013
Please send a copy of this write up to Mr. Modi and see what he has got to say about it.
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Bank helps only political members
P Rajesh Kumar | Sat Nov 9 01:54:03 2013
All the officers & political members is not correct .
Bank helps only political members, our area is big but only one National bank S.B.I.
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Yes I agree
P B Ravikumar | Fri Nov 8 04:15:16 2013
Further to the corruption levels indicated (which I also agree to be true), I would like to point out another angle.
We are regularly exporting through Chennai port. Recently customs team got transferred and new team got in place. They have started demanding submission of all old records thereby delaying all our exports. Only new bonds executed are being supported. Old bonds were not executed by the new team (read - they did not receive the required patronage!!!!)
What would you call these practices? New Customs officer is being very rude and ask our team to get out of the office since they are not taken care!!
Your editorial talks about no. of documents needed but we also need correct attitude, friendly customs and fast port clearing!
India is very close to Sri Lanka, yet it takes 3 weeks to deliver simple raw steel. They are able to get it from Singapore in 10 days!! This is just because of age old customs procedure!!
Comment On Doing Business In India
professor68 | Fri Nov 8 03:56:36 2013
Agree. It will continue to be so till the politicians we elect and the administrators they appoint realize that the - status quo -they so much like to continue (indefinitely)is ONLY good for their personal benefit and not for the country and growth.
Representatives, associations, chambers and individuals should use the media and public forum's to highlight the need to HELP industry (of any kind, shape, form) rather than try to extract from the source itself at every step.
Somewhere in the last sixty years or so, honesty, transparency, quality and perhaps even the - professional - work ethic has been subsumed in the greed of grab; every way, which way !
It can be done; it needs, unfortunately, a political confluence and will.
For that, we need to shout from the rooftop(s) and continue to do so till there is a viable response.
The very fact that we have been managing to stumble and bumble along in the - world - (a giant village ?) is proof enough that it is still not too late.
Corruption SMEs Face in India
Dilip Jhaveri | Fri Nov 8 03:08:45 2013
I tried a little bit business in India. A small but component is imported. After it comes in mail it takes some 3 to 4 weeks to get out of customs. Then they have some objections and explanations. If I do not keep stock, I will miss deliveries. And, keeping stock is expensive. When I finally get it out, I get a receipt which is always fake. The money goes to officials. But, I would not dare challenge or I cannot import. It costs these officials crores to get the job, and they must earn it. After all the works I decided to close.
Shiny India is rotten at its core.
comment
amit ahuja | Fri Nov 8 02:26:00 2013
Making doing business easy in India would result in very less money making opportunities for the master and the slave;politician and babus. Whatever Chidambaram and co.may keep saying, who are they kidding? Don't they know the ground reality? It's all bark with no bite!!
Without bribery, no body can start a business
Kunnnakkattu J | Fri Nov 8 02:15:15 2013
The report correctly said about the procedures and time for resolving the problems are more than that mentioned. Without bribery, no body can start a business and hence people calculate about black money before they start business. Commission required in all PUCs and Govt organizations. Irrespective of this issue of bribery, I suggest that if a person is having PAN No, Bank account no, simple on line registration with a Registrar or Organizations should be made available for starting a business. Then comes Sales Tax, Income tax registration. If this policy adopt, the number of entrepreneurs will increase in India.
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If the subsidy by MNRE for solar installations is 30%, 10% or more goes to MNRE
R Kannan | Sat Nov 9 13:21:01 2013
CORRUPTION: This is a fact well known to everybody in the Govt. from PM, FM, CM, etc, etc. You have MNRE (giving subsidy to Soalr units) All Indian Council of Education (giving approval for Medical & Engineering colleges) and so on so forth. In all these places CORRUPTION and nothing but CORRUPTION is happening. Who doesn't know this. What action VIGILANCE, CBI, IT and other departments are taking???? GOD SAVE THIS COUNTRY.
If the subsidy by MNRE for solar installations is 30%, 10% or more goes to MNRE. Only the balance goes to the manufacturers/consumer. This is open secret. Still no action is taken; may be because the money travels from the bottom to the top.
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Bribe amount mentioned is much lower
Premnath Shetty | Thu Nov 7 22:52:08 2013
I totally agree with every bit what has been written. Bribe amount mentioned is much lower than what is actually prevailing. I personally have an ongoing issue with the Excise Department where my expired BG is not being returned even after the obligation have been fulfilled against the same, For a BG of 6lacs, the concerned excise officer is demanding 1lac, which I have refused to pay. Secondly in Karnataka for a liquor license you need to pay a bribe of 70lacs to the concerns in the excise department and should have good contact. Excise department are on the roll of each and every manufacturing unit and hotels/restaurant serving liquor, pubs, bars and discos. Payment to Excise Department ranges from as low as 1K to 100K every month. If you don't pay then you will be put into trouble. For every Sales Tax registration, you have to pay a bribe to the person who comes to our office with the Registration number. These are some of the reasons of the sinking Indian economy.
Lok pal is the answer
Puneet | Thu Nov 7 18:55:35 2013
Sir, glad and appreciate that u are aware of the problems and discussing in your editorials. I think if lokpal is introduced and timely framework for doing a particular work is introduced then many problems will be solved. The babus always show fear of rules and procedures and they don't have any fear of being caught I think if the above some good laws are made and old laws are exited then these babus too will have fear of losing job because chalti tab tak hai jab tak kursi per hai.The work will automatically will be fast and done on or before time without any bribe.
Hurdles in Business
Yusuf Palitanawalaa | Thu Nov 7 17:58:28 2013
According to our Politicians eyes, India is an Agricultural Country.
Hence the Idea of Business Ease is out of these People's Dreams also.
Just see the unnecessary Taxation Hurdles Created by our Govt.
We have to pay Excise & then VAT of 3 diff. types, then Octroi, Then Municipality Taxes & what not Nonsense.
Even after paying so many Taxes you need satisfy the Authority officers. FED up of this System, So many Taxes wastes my 50 % of the time arranging the Documents for the Govt. Submissions.
We are in the worst place in India
arun sinhal | Thu Nov 7 13:33:37 2013
We are in the worst place in India that is the great West Bengal even this is not the situation we can only install a industry not less than two years and lot of problems so there is no industrial environment.
Lack of swift implementation of law
M H S Babu | Thu Nov 7 13:01:26 2013
The basic problem is lack of swift implementation of law. I don't see it happening in the near future.
Business in INDIA for Indian Enterprenuers
Dhananjaya R. | Thu Nov 7 12:23:32 2013
I totally 100% agree with the points being mentioned above, Our Enthusiastic and potential talented people should be given first and Law and admin should see that no corrupt companies comes up in minting money. Finally, We should sell our products and technology, instead of depending on US or others.
Indian Industries fate !!!
K.nazar | Thu Nov 7 10:05:37 2013
According to world bank, Indian industries a lowly 134th place is must be!
to avoid all this, 1. easing government formalities. 2.Giving importance for Indians run industries. 3. government involvement, to discuss with small and medium type industries owners to observe their conditions. 4. government should take alternative idea for power distribution system. to prevent factories from shut-down. 5. government formality system should affect the industrialists . 6. government's industry officers brutal attitude for money making, should be stopped.7. government should form exporter co-operative society, reach their product to end users frequently.
CORRUPTION is the root cause
Ramu | Thu Nov 7 10:04:49 2013
As you have rightly indicated corruption is the root cause of all evils. Businessmen as an organised form should refuse to give bribe and take an oath not to grease the palms of any body to get things cleared . They should come out boldly and tear the masks of the corrupt officials and ministers.
Failed nation
Anil Jinsi | Thu Nov 7 07:32:38 2013
Not only doing business and setting up SMEs in India is tough but surviving in India has become big question. India is going through darkest period even worse than it used to be during Mohammad Tughluk .SMEs is backbone of any developing and developed nation ,and the same sector is not ailing but finished from the roots, thanks to Indian governance. Is not India a failed nation? As everything in India is ailing and on international level we are being equated with countries like Ethiopia and Bangladesh. Shame.
SME
Mohammed Anwar | Thu Nov 7 05:21:40 2013
Due to government crawling procedure in paper works and list of documents to be approved by officials,we SME have to face hard task in the beginning.This has to be resolve by the ministry of chamber of commerce/industries.Being SME,It should get quick responses as soon on documentations.
On other hand the Export will increase more and more attracting SME on this platform in less number of days to be taken.
Not as bad as it is made out to be
DD Maheshwari | Thu Nov 7 05:00:36 2013
Everybody blames this, but no one has done serious work to make it simple.
If you have mentioned various forms procedures, etc for India and other countries, can you arrange to get them. I will provide you what can be simplified and what cannot be.
Many information asked for is valid, problem come when people do not have it or give it, and there are delays.
I have incorporated a co, obtained a licence, done imports & exports, done foreign collaboration, taken industrial licenses, procured land in 3 states in India. I have same complaint in seminars, etc, but no real work has been done. Are you willing to take the initiative. It is not as bad as it is made out to be.
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Re: Not as bad as it is made out to be
K. C. AGGARWAL | Thu Nov 7 14:04:07 2013
How much BRIBES you paid and to how many people right from peons to officers?? I can GUARANTY THAT WITHOUT DOING SO, YOU WOULD NOT HAVE MOVED A MILIMETER, LET ALONE AN INCH.
Doing almost 5 crores of export in 1980, I did not take Lakhs of Rs ( about 75 lakh @ 15 % then as Cash incentive) and almost same amount of licences which had an almost equal premium then because I REFUSED TO BRIBE BOTH BUREACRATS AND POLITICIANS AS WELL AS CUSTOMS Bs.If rupee trade stopped in 1993 about and if India has today foreign exchange it is because I fought and put my life and my family'S on STAKE. NO industrial house dared to challenge politicians and Madame Italiano , BJP or others not withstanding. You have a right for your opinions but no right to claim falsehoods as truths.
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Re: Not as bad as it is made out to be
Dilip Jhaveri | Fri Nov 8 03:12:57 2013
If you try honestly and no bribes, it will take you some 5 years to really start your factory. and, more costs to do daily operations. If you are exporting, you are making money and officials want a share of it. Good luck.
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Rajiv | Thu Nov 7 04:05:13 2013
This will continue till corruption in India exists.
Corruption is rampant
sandy | Thu Nov 7 03:45:59 2013
I agree with your comments, however, you have just touched upon the issues in a broad manner. Corruption is rampant-from the time the goods land on Indian soil, we are held to ransom by the customs, the string of taxes, including the vat, the service tax, the excise tax, and other taxes adds on to cost of the products making them expensive, and then the dismal buying power of the "INCREDIBLE INDIA", the atrocious infrastructure facilities, extremely bad road, frequent power breakdowns, and a callous workforce, leaves a SME ruing over the fact as to why did one start a business in India.
One has to look at other progressive countries such as Dubai, which has a favourable atmosphere for doing business. The infrastructure is excellent, one does not have to grease the palms of the officials to get the work done, taxes are non existent, there are consumers from around the world, who create enough buying power.
An on top of it, the ever increasing list of defaulters. In a business like the mobile phone sales, there are many small players who insist on credit and never end up paying. Cheques are issues which bounce regularly. There are no hard laws or faster actions which would deter such unscrupulous people from issuing dud cheques. There is no fear of law in the minds of such people who play with other's money.
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Re: Corruption is rampant
K.eshav | Thu Nov 7 14:22:22 2013
Dubai: "Door ke Dhol Suhawane". what you say , OK for locals and Bribe eating whites. It is a place where as a businessman you can bring money enough and either get into fake products biz to make more money or loose everything in most cases for genuine products marketing as by the time you can take action against fakes, you are mostly out of your genuine biz and could be lucky not to end up in jail for being not able to pay your creditors. SO GOLDEN RULE TO SAVE YOURSELF ARE: either deal in fakes, OR NEVER ISSUE A CHEQUE IF YOU DONT HAVE MONEY IN YOUR ACCOUNT , if you are doing an honest biz. Try to deal with neighbouring countries on pre-paid shipments/transactions as legally you will not recover easily from a defaulter..
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20-25K bribe money is really low
PB | Thu Nov 7 00:20:55 2013
Your figure of Rs 20-25K bribe money is really low. To import a luggage weighing scale (n0n-commercial) I have had to file 5 forms, full detail of construction and software coding (trade secret), never mind the fact that there is no rhyme or reason for those information to be divulged. We have to get the scale approved by the W&M labs in Bangalore, pay a bribe of Rs. 60,000 for the report. This now goes to Delhi where the babus are demanding another Rs 60,000 for just to sign off on the approval form so that it can be published in the Gazette. Only when published are we eligible for an import license. This has taken over a year and still waiting for the Gazette publication. And God only knows how much we have to pay the custom officials apart from 23% in duties and fees. All of this for a measly $7.00 item.
To import the same item in USA, I do not need an import license, no duties and no money changing hands. All that is required is customs clearance form (1 page) and fees of about $120.
Doing business in India is a joke. It is a money making machine for the corrupt officials and politicians. What should be a 15 day procedure is now taking over a year for us.
And India wants to know what ails FDIs?
Doing business in India is quite difficult
Zaher Sunderji | Wed Nov 6 19:59:45 2013
You hit the nail right on the head. Something has to be done to speed up some of these procedures and the results will be more investments in the country and tremendous encouragements for new entrepreneurs.
Doing business with India.
Jim Simpson | Wed Nov 6 16:18:59 2013
Thank you for reminding me that I must "swim through your mote to reach your castle". I had been considering working with your brass industry to take advantage of India's expertise in this area. Yet, this "reality Check" squashes my hopes.I need to do business to make my products compete, yet the extra weight of all you bring up confirms that all profit would be lost to outstretched palms waiting to be crossed. You have saved me a great deal of time. Thank You.
Corruption.
k.c.aggarwal | Wed Nov 6 16:05:16 2013
I was exporting animal feeds and picking up Rice Bran extraction from Punjab and needed a train load every time of 65 bogies of 20 MTons in a train. Bloody Sheila Dixit daughter of then railway minister wanted every time Rs 12000 - 15000 for release of a train from Ferozpur office. I refused to pay but one of my relatives of material supplier paid up. I only knew after 3 such deals and refused to export and stopped exporting. Chidambaram is as corrupt and and a big b in same respect. So how can you do biz and export. BJP had Karnataka man - I forget his name who told me when he was in charge of foreign cell in BJP that rupee is coming if not foreign exchange, so no problem. when I told Advani about it, he simply made face and passed a remark. Janta dal president when they were ruling asks me what is rupee trade. so I told him we will be wasting each other's time if you as ruling party president don't know what is rupee trade. I fought against rupee trade for more than 7 years in supreme court with my own money and spent 2 million rupees of my own, was threatened with murder and elimination. I found over 75% Judges of supreme court in pay of foreign multinationals, who ultimately told it should be decided by Parliament. Never in History of S.C a case posted for 2 pm a/noon is taken 1st in morning but supreme court corrupt judges did it. Records will prove.
Harassing Govt Officials
shinoz ahmed | Wed Nov 6 14:29:28 2013
After the graduation from college I decided to start a own venture.To decide my project I took 1 year.After I decided now is 6 months over.The procedures for starting industry is making the delay.I am afraid now that when I start my project will be out dated.
Problems for small businessman
SANDEEP BHATT | Wed Nov 6 13:58:58 2013
Govt /Local civic body employees always takes advantage of the non compliance of ancient laws which were implemented decades ago. They have been given the POWER to shut down or impose heavy fines on flimsy grounds. SME are often not aware of the endless list of licenses and requirements of various local/civic bodies. This is the root cause of corruption, as SME often feels helpless and they have no other alternative but to give in to the demands of the Govt employees to survive in business. The 1st step towards improvement should be to tackle the harassment of the BABUS. In other words the extortion should stop.
In UAE import and export of goods takes 1 or 2 days. The govt there seeks suggestions from businessmen on ways to improve and encourage businesses. The Govt there is of the view that they should CREATE the appropriate environment first, after which the businesses will automatically flourish. I have been in business in UAE for 2 decades and have seen the various Govt dept keep with the modern times and going paperless in most transactions. There is absolutely no corruption in various dept like RTO, Municipality, License section, Immigration and Labour etc. With the right papers in hand, the work can be done in no time without paying any bribe to anyone. I hope, wish and pray to God to see this happen in our country some day and would be extremely lucky if my dream comes true in this birth.
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