No more business in india!

Read this: The World Bank data highlighted that India ranked ninth across the globe in terms of new companies registered in 2011. Starting up a business is in India is still costly compared to its counterparts but the cost has gradually plunged to 49.8 per cent of per capita gross national income from 70.1 per cent in 2008. In 2012, India has taken only 27 days to start a business compared to 33 days in 2008. All these facts indicate a rosy picture of doing business in India. But in reality, India has ranked 132th out of 185 countries as per the World Bank report called Ease of Doing Business 2013.

Chairman of Godrej Group, Adi Godrej has recently voiced his concern on a television show called 'Devil's Advocate' hosted by CNN-IBN that "I think he (PM) has overlooked some facts in that speech. One of the biggest mistakes we made was when we brought in retrospective amendments in the budget two years ago... He (PM) forgot that one of the biggest problems has always been the ease of doing business in India." Even Director, Global Indicators & Analysis Group, World Bank, Augusto Lopez-Claros has advised India that "To attract FDI and in turn strengthen the dwindling rupee and the economy, India needs to enhance the 'Ease of Doing business' on urgent basis." He further added that "Every single day of undue delay in product shipments due to cumbersome processes, procedural laws and regulations in India reduces the companies' revenues adversely and affects the economy. Further, Excess regulations in labour market and complex property registration regimes lead to difficulty in raising finance, higher chances of corruption and parallel economy."

Without any doubt, India has lost several billion dollars as the country is not able to provide favourable business conditions. For instance, China’s largest radical tyre maker has dropped their plan of investing $3 billion due to red-tapism and corruption. In the same light, Mumbai-based NRB ball bearings giant is going to expand their business in Thailand rather than in India. Several factors like retrospective taxation, overall slow process have damaged the image of India. Former SEBI Chairman, M. Damodaran-headed expert panel has recently mentioned in their report that “Retrospective taxation has the undesirable effect of creating major uncertainties in the business environment and constituting a significant disincentive for persons wishing to do business in India.” At this circumstance, India needs to implement taxation policy reforms and needs to enhance its single window clearance system to develop confidence among its investors. Moreover, India has to maintain the global pace to win the competition.