Doing business in India is like doing a crime
57 views
Skip to first unread message
Prakriti Aarogya Kendra
Nov 24, 2012, 2:50:45 AM11/24/12
to prakriti-a-call-to-...@googlegroups.com
http://www.tradeindia.com/utils/showletter.html?n_id=11750&email_key=1697591&disp_id=5590&sub_id=3&hash=c08664348e7d850597f6c3bff937d492
The red tape challenge for SMEs How much small businesses suffer from red tape and government bureaucracy? Fat bundles of paperwork, countless certificates, long hours of waiting, irritating haggling with unresponsive officials . . . whenever our small entrepreneurs talk about public bureaucracy involved in owning and running a small business, they spew venom. There are a myriad of inconceivable obstacles at every step -- right from registering a business or getting an electricity connection to paying taxes or getting loans.
A recent report on "Doing Business 2013, Smarter Regulations for Small and Medium-Size Enterprises" published by the World Bank and the International Finance Corporation (IFC), gives the same picture. In the list, India ranks very low at 132 th position out of 185 economies surveyed, faring particularly poorly on some of the sub-indices such as starting a business (173), dealing with construction permits (182), getting electricity (105), paying taxes (152), trading across borders (127), enforcing contracts (184), resolving insolvency (116).
The report adds that Indian SMEs have to comply with 12 procedures that take on average 27 days to start a business. Similarly, dealing with construction permits involves 34 procedures and a 196-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. For exports, an SME needs to collect 7 types of document, including Bill of Lading, Certificate of Origin, Commercial invoice, Foreign exchange control form, Inspection report, Packing list, Shipping Bill, Technical standard certificate, and Terminal handling receipts -- all these requiring a total of 16 days on average.
Beyond doubt, such a level of bureaucracy and red tape is a real headache for our SMEs. Small business owners, with their weak financial muscles and limited hiring power, have to keep themselves busy as a bee in handling a lot of daily chores at office and keeping a close eye on every single aspects of their business. It is therefore of crucial importance that regulatory burden on them is cut as much as possible to free up their time and money. But unfortunately we never see the government doing much in this direction.
In addition, I fear that the time, costs and difficulties in fitting in with all the aforesaid rules and regulations usually go much higher than the figures as reflected by the World Bank report. Here, I would like to invite feedback from our readers on how government bureaucracy creates unnecessary barriers for SMEs. Do you think that most of the norms and paperwork do not serve any public interest and they are unnecessary? And what are the ground realities? What steps are need to be taken by the government to help the SME sector get out of this labyrinth of red tape.
--
Facebook
The red tape challenge for SMEs How much small businesses suffer from red tape and government bureaucracy? Fat bundles of paperwork, countless certificates, long hours of waiting, irritating haggling with unresponsive officials . . . whenever our small entrepreneurs talk about public bureaucracy involved in owning and running a small business, they spew venom. There are a myriad of inconceivable obstacles at every step -- right from registering a business or getting an electricity connection to paying taxes or getting loans.
A recent report on "Doing Business 2013, Smarter Regulations for Small and Medium-Size Enterprises" published by the World Bank and the International Finance Corporation (IFC), gives the same picture. In the list, India ranks very low at 132 th position out of 185 economies surveyed, faring particularly poorly on some of the sub-indices such as starting a business (173), dealing with construction permits (182), getting electricity (105), paying taxes (152), trading across borders (127), enforcing contracts (184), resolving insolvency (116).
The report adds that Indian SMEs have to comply with 12 procedures that take on average 27 days to start a business. Similarly, dealing with construction permits involves 34 procedures and a 196-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. For exports, an SME needs to collect 7 types of document, including Bill of Lading, Certificate of Origin, Commercial invoice, Foreign exchange control form, Inspection report, Packing list, Shipping Bill, Technical standard certificate, and Terminal handling receipts -- all these requiring a total of 16 days on average.
Beyond doubt, such a level of bureaucracy and red tape is a real headache for our SMEs. Small business owners, with their weak financial muscles and limited hiring power, have to keep themselves busy as a bee in handling a lot of daily chores at office and keeping a close eye on every single aspects of their business. It is therefore of crucial importance that regulatory burden on them is cut as much as possible to free up their time and money. But unfortunately we never see the government doing much in this direction.
In addition, I fear that the time, costs and difficulties in fitting in with all the aforesaid rules and regulations usually go much higher than the figures as reflected by the World Bank report. Here, I would like to invite feedback from our readers on how government bureaucracy creates unnecessary barriers for SMEs. Do you think that most of the norms and paperwork do not serve any public interest and they are unnecessary? And what are the ground realities? What steps are need to be taken by the government to help the SME sector get out of this labyrinth of red tape.
--
=========================================================
Thanks and Regards,
Prakriti Aarogya Kendra
Specialty Store of Organic, Ayurvedic, Herbal, Natural & Swadeshi Products
Shop No. 2, Buena Vista,
Off Ganpati Chowk,
Beside Bank of Baroda,
Viman Nagar, Pune - 411014
Contact Numbers : 020-40038542, 9822622905, 9881308509
Website
Blogs
www.swatantrabhaarat.blogspot.com
www.prakriti-pune.blogspot.com
www.groups.google.com/group/prakriti-a-call-to-return-to-the-nature
Yogesh Patil
Nov 24, 2012, 12:22:08 PM11/24/12
to arogya_...@googlegroups.com, prakriti-a-call-to-...@googlegroups.com
I would preview the procedures are meant to safeguard the country against any external influences .(starting from central bank rules ,SEBI rules ,business startup rules) ,
I see the procedures are created not to delay but to protect India against foreign influence and dominance .It is because of strong regulations our country has been very consistent in development though it is slow.Remember it is one company East India Company Which came and looted all wealth of india and dominated for 200 years.
Now this government is making every step to break this regulation and make an easy entry for any foreign companies....Now local brands are all gone Drinks (Coca Cola ,Pepsi) ,Essential Items (P&G ,Nestle) Dress (Van Heusan ,Allen Solley) Shoes (Bata ,Nike ,Adidas,Reebok) It is becoming safe heaven for dumping products manufactured from developed countries,Foreigners influences now every where can be seen Stock Market ( mostly in hands of FDI ,QFI etc).You may see most of the regulations were broken by current govt by passing laws ....
Agriculture ( Earlier seed institutes govt entities were having control on seed distribution now monsanto (usa ),US SEEDS were dominating and influencing govt to allow BT seeds (Food control will be biggest weapon in coming decades ,so the mnc would want to have control over seeds)
If the regulations and procedures are not in place ,,,,the current government which act as foreign broker under constant influence from sonia gandhi have sold entire country.
I would suggest every one of the forum members to preview following links .
http://www.youtube.com/watch?v=b9N-G3aovL8
http://www.youtube.com/watch?v=zuUlBipJXWE
http://www.youtube.com/watch?v=hG48bzamPWk
I see the procedures are created not to delay but to protect India against foreign influence and dominance .It is because of strong regulations our country has been very consistent in development though it is slow.Remember it is one company East India Company Which came and looted all wealth of india and dominated for 200 years.
Now this government is making every step to break this regulation and make an easy entry for any foreign companies....Now local brands are all gone Drinks (Coca Cola ,Pepsi) ,Essential Items (P&G ,Nestle) Dress (Van Heusan ,Allen Solley) Shoes (Bata ,Nike ,Adidas,Reebok) It is becoming safe heaven for dumping products manufactured from developed countries,Foreigners influences now every where can be seen Stock Market ( mostly in hands of FDI ,QFI etc).You may see most of the regulations were broken by current govt by passing laws ....
Agriculture ( Earlier seed institutes govt entities were having control on seed distribution now monsanto (usa ),US SEEDS were dominating and influencing govt to allow BT seeds (Food control will be biggest weapon in coming decades ,so the mnc would want to have control over seeds)
If the regulations and procedures are not in place ,,,,the current government which act as foreign broker under constant influence from sonia gandhi have sold entire country.
I would suggest every one of the forum members to preview following links .
http://www.youtube.com/watch?v=b9N-G3aovL8
http://www.youtube.com/watch?v=zuUlBipJXWE
http://www.youtube.com/watch?v=hG48bzamPWk
Reply all
Reply to author
Forward
0 new messages