WORLD'S TOPPERS- BUREACRATIC RED TAPISM
I have discussed lot of politics in my previous blog pages. Now lets talk about business and economy. This is specially for our business community.
That India should continue to be close to the bottom of the heap on ease of doing business ranking does not shock as the country compares very poorly with the benchmark on every possible parameter. Barring a few spurt of reform measures in recent years, business and the conduct of commercial activities continue to face bureacratic impediments. Which is why, after being seen as reformer one year 2006-2007, the country now 2007-08 lags many other less developed nations that are moving fast to cut bureacratic controls. India continues with its low ranking among 181 countries----122 in the latest edition of World Bank Finance Corporation's--- doing business report against 120 in the previous edition.
Countries that offer the best conditions to do business undoubtedly are the ones with least number of impediments and costs, e.g. Singapore, New Zealand, USA and Hong Kong. So they retain top rankings year after year. More importantly, they are constantly working at easing regulations. Singapore, for instance, despite being seen as the best place to do business, year after year continued its reforms process. Between june 2007 and june 2008, Singapore further simplified its online business start up service. New Zealand introduced a single online procedure for business start-up, lowered the corporate income tax.
India in comparison, did very little to make the country a more attractive place to do business. All it managed to do was ease hurdles to foreign trade. Many of the reform measures that could make material difference to a business are hanging fire.. Labour laws in india are most backward. For example, to start a business in india, a businessman needs 13 procedures against one in countries such as New Zealand, Sri Lanka and even Bangladesh. Getting construction permits in india takes 224 days and a businessman needs to complete 20 procedures, in contrast, Denmark needs 6.
Payment of taxes too is cumbersome process in india. Businesses are required to make as many as 60 payments in a year,, which takes 271 hours in a year to prepare and filing tax returns. Contrast that to just 2 payments businessmen are required to make in Sweden a year.
Why NRI's get disgusted and return back, are the reasons as mentioned above. JAI HIND RED TAPISM.
That India should continue to be close to the bottom of the heap on ease of doing business ranking does not shock as the country compares very poorly with the benchmark on every possible parameter. Barring a few spurt of reform measures in recent years, business and the conduct of commercial activities continue to face bureacratic impediments. Which is why, after being seen as reformer one year 2006-2007, the country now 2007-08 lags many other less developed nations that are moving fast to cut bureacratic controls. India continues with its low ranking among 181 countries----122 in the latest edition of World Bank Finance Corporation's--- doing business report against 120 in the previous edition.
Countries that offer the best conditions to do business undoubtedly are the ones with least number of impediments and costs, e.g. Singapore, New Zealand, USA and Hong Kong. So they retain top rankings year after year. More importantly, they are constantly working at easing regulations. Singapore, for instance, despite being seen as the best place to do business, year after year continued its reforms process. Between june 2007 and june 2008, Singapore further simplified its online business start up service. New Zealand introduced a single online procedure for business start-up, lowered the corporate income tax.
India in comparison, did very little to make the country a more attractive place to do business. All it managed to do was ease hurdles to foreign trade. Many of the reform measures that could make material difference to a business are hanging fire.. Labour laws in india are most backward. For example, to start a business in india, a businessman needs 13 procedures against one in countries such as New Zealand, Sri Lanka and even Bangladesh. Getting construction permits in india takes 224 days and a businessman needs to complete 20 procedures, in contrast, Denmark needs 6.
Payment of taxes too is cumbersome process in india. Businesses are required to make as many as 60 payments in a year,, which takes 271 hours in a year to prepare and filing tax returns. Contrast that to just 2 payments businessmen are required to make in Sweden a year.
Why NRI's get disgusted and return back, are the reasons as mentioned above. JAI HIND RED TAPISM.
posted by vaneet kundra at
Tuesday, September 16, 2008
3 Comments:
I dont know much about business. Its strange that we have so much red tapism in our country. I do check sensex almost daily because of few investments, i have made in mutual funds. That is why foreign companies are leaving our country. i believe so...
Dear anonymous,
Come on.... just leave your name. I will be able to commnicate in a better way with you. You write your comments quite regularly and i appreciate your views. Thanks again for your valued comments.
not knowing much about business myself so its sad to know that we have red tapism in our country which is not letting it progress the way it should. but checking the world sensex since 2 days i wonder whether other countries are going the same way..bankrupticies, mergers, sell offs. of such big companies...
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