Easier to do business in Pakistan than India: Report

[Donatello]

India is one of the fastest growing major economies with large amount of investments but red tape and some other issues will never go from India.

South Korean company Posco wanted to set up one of the largest steel plant with more than $ 12 billion investment, which would have been the largest FDI in India as well but thanks to various issues like resistance from few locals, activists and environmental issues, the project is on the verge of cancellation!

Large MNC projects are easier to set up because, they involve talking with high level government people, like the President, PM etc.

They don't walk into banks and government offices. The government/banks come to them.



The article is about general business, for example if you had to set up a software firm, how easy would it be to get a loan, business license approved, utilities for business approved, costs, logistics, import customs etc.


Big firms have no trouble setting up, and that is not what article is referring to.



Do you really think, any country in the world would want to create hurdles for a 12 billion dollar investment, the one you mentioned?

 

[karan.1970]

Imagine what would be the growth rate if India got this red tape under control..

 

[StingRoy]

Large MNC projects are easier to set up because, they involve talking with high level government people, like the President, PM etc.

Do you really think, any country in the world would want to create hurdles for a 12 billion dollar investment, the one you mentioned?

Read more on POSCO, Vedanta issues on google and you will realize... Large scale projects tend to impact the local inhabitants significantly and have a bigger environment impact. Although they have the govt support, there are various clearances that are needed to setup shop. Even if the govt wants the projects, sometimes local activists would oppose on various grounds.

 

[jayron]

Most important issues that investors in India face are environment clearance and land acquisition. Both of them can be twisted and played by politicians to make the ruling government look bad. For our country where every piece of available land is populated , these two issues will be a big challenge.

 

[luckyyy]

it's a matter of regulations...

india could be more tougher in regulations...

i know , hazardious industries like rubber , plastice , glass , ceramic are under constent watch in india and are very highly regulated and menufecturing and use of hazardious chemicals need special licencies...
but been a democracy govt in india has to look at welfear of gernal public as well ....

there could be relexation on these in other countries rank above india...

 

[Mirza Jatt]

the environment in india is business friendly and the scope of its expansion is quite large..only problem lies is with the commencemnt, that too is only that the process is long and complicated..otherwise if you have the capital..india is probably the best market. read somewhere that it takes 5 days to start a business in china compared to 35 days in India.

 

[nForce]

... nForce wants an answer from razgriz19 now ....

hmph...now I get the sarcasm....

 

[Gandhi G in da house]

This is true and we need to do something about it. Wherever in india too much of the state/government gets involved , things move at snails' pace .Indians living in India who have first hand experience working with these sarkari/government people know what i am talking about. Just look at the defence sector in India ( LCA and MRCA) and look at the CWG preparations( inspite of having seven years they finished preparations only around 5 days before the games began). India is growing fast only because of its competent and efficient private sector .
Government's interference has to be reduced in certain sectors for India to grow faster .Feel free to disagree.

 

[Tshering22]

I have gone through a similar report before,a much more detailed one....

Okay,can someone tell me if it is indeed easier to do business in Pakistan than India,then why more and more business opportunities are coming up in India than Pakistan????

It is a lot safer and more bankable to do business here that's why. Security is chief concern and also is the market size. Indian and Chinese markets are colossal which makes Pakistani markets look very small and unfavourable to promote brands.

Though red tapism is definitely a speed breaker, companies are more concerned with the safety of their operations than to initially undergo trouble in setting up business. They'd rather face the latter temporarily than formal as a permanent concern.

 

[somebozo]

only if there is cheaper and reliable electricity and less risks of someone walking in your office to blow themselves up!

 

[LEGENDARY WARRIOR]

I would request the indians to calm down. You are taking it the wrong way. The report says it is EASY to do business in Pakistan. But it did not say that ECONOMY of Pakistan is better than india. India certainly has a strong economy. And the bureaucracy problem is more serious in Pakistan than it is in india.

According to my observation business is easy in Pak because dealing with people in Pakistan is easy than people in india. Secondly its your underworld which is very strong and hinders your way to progress . . . .

 

[Indiannn]

Easier to do business in Pakistan than India: Report ​

World Bank, IFC also accord higher rank to Bangladesh, Nepal​

BY Abhishek Anand
Delhi

Posted on November 04, 2010


India may be thumping its chest for being the second fastest growing economy and being one of the few countries that was relatively unscathed by the global economic downturn. But when it comes to doing business, it fares worse than most neighbours, including archrival Pakistan.

According to a report titled Doing Business 2011: Making a Difference for Entrepreneurs prepared by the World Bank and the International Finance Corporation, India is 134 in a ranking relating to the ease of doing business, while Pakistan, Sri Lanka, Bangladesh and Nepal are ranked 83, 102, 107 and 116, respectively. China is ranked 79.

Among its neighbours, Bhutan, ranked 142, is the only country ranked below India.

Worse, among the nine parameters based on which countries have been ranked, India’s position has declined in five and shown improvement on only three fronts. It has been able to maintain status quo on only one of the yardsticks.

India has shown improvement in terms of paying taxes, starting a business and closing a business, while it has slipped on the counts of dealing with construction permits, registering property, getting credit, protecting investors and trading across borders.

“India is one of the most preferred destinations for investments in the world today and is likely to remain so for next few years,” said DK Joshi, chief economist at credit rating agency and industry tracker Crisil Ltd.

“As far as reasons for India being ranked so low in terms of ease of doing business, this could be because of procedural hassles, time taken in approvals, among others. The pace of reforms, too, is slower than anticipated and all these factors results in lower ranking,” Joshi added.


Tehelka - India's Independent Weekly News Magazine

Ahh world bank report.
Then cherish this one as well.

India to outpace China next year: World Bank - Business News - IBNLive

 

[somebozo]

According to my observation business is easy in Pak because dealing with people in Pakistan is easy than people in india. Secondly its your underworld which is very strong and hinders your way to progress . . . .

I worked some deals with indian importers these people penny pinch so soo much that i ended up with "**** it..not worth my time". Also you find absolute morons doing trade who dont understand the product neither the features and will be constantly comparing with a lower quote they have got even if the product is apple and oranges apart. Sometimes you feel like duping them just to cover your cost of time they have wasted.

Dealing with Iranians, Pakistanis and Turks in business is worlds apart.

its strange that the same world bank could not predict americas financial mess considering their reckless banking industry? but it constantly likes to spew prophecies about india taking over china with in a year. I wanna ask which swami jee invented this formula of quadrippling economy in 365 days?

 

[LaBong]

I worked some deals with indian importers these people penny pinch so soo much that i ended up with "**** it..not worth my time". Also you find absolute morons doing trade who dont understand the product neither the features and will be constantly comparing with a lower quote they have got even if the product is apple and oranges apart. Sometimes you feel like duping them just to cover your cost of time they have wasted.

Dealing with Iranians, Pakistanis and Turks in business is worlds apart.

its strange that the same world bank could not predict americas financial mess considering their reckless banking industry? but it constantly likes to spew prophecies about india taking over china with in a year. I wanna ask which swami jee invented this formula of quadrippling economy in 365 days?

Why this guy always try so hard to live up to his name? :s

 

[Asian.Century]

Indian bureaucracy is the main issue here, slow and dead, corrupt to the core, with strict rules and regulations....Pakistan is more open and easier to do with business with.