India not easy to do business in: World Bank

[Spring Onion]

India not easy to do business in: World Bank


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Bulls to push Sensex higherIndo-Asian News Service
New Delhi, September 26, 2007
First Published: 18:05 IST(26/9/2007)
Last Updated: 20:06 IST(26/9/2007)


Even as India's markets soar and the economy grows at over 9 per cent, the World Bank on Wednesday said it was not easy doing business in India.

India was ranked 120th, though up 12 positions from last year, in an annual report titled "Doing Business 2008" issued by the Bretton Wood twins, the World Bank and its private lending arm International Finance Corp (IFC).

India ranks lower than Tunisia, Botswana, Uruguay and Ethiopia.

The report indicated that for obtaining a business license in India, it may take anywhere between 159 and 522 days, depending on the state.

To register a property in India, the wait can be as long as 155 days compared to a shorter time even in its immediate neighbours such as Pakistan, Nepal, Sri Lanka, Bangladesh and Bhutan.

Incidentally, the report came on the day when the Sensitive index (Sensex) of the Bombay Stock Exchange (BSE) breached the 17,000-point mark for the first time - taking barely seven sessions to climb 1,000 points.

The report said that China rose nine ranks over the last year to grab the 83rd position. Topping the list is Singapore followed by New Zealand, the US, Hong Kong, Denmark, Britain and Canada.

Countries that have emerged as world's top 10 reformers are Egypt, Croatia, Ghana, Macedonia, Georgia, Colombia, Saudi Arabia, Kenya, China and Bulgaria.

The Maldives and Pakistan lead others in South Asia. Notable reforms have been observed in Afghanistan, Bhutan, Pakistan and Sri Lanka.

"The benefits of increased regulatory reform are especially large for women. Women often face regulations that may be aimed at protecting them," said Melissa Johns, an author of the report.

"But the effect is counterproductive, forcing women into the informal sector, where they lose out on job security and social benefits."

The rankings are based on 10 indicators of business regulation that track the time and cost to meet government requirements in business start-ups, operations, trade, taxation and closure.

India not easy to do business in: World Bank- Hindustan Times

 

[yarmook]

couldnt agree more with this article


accoridng to an article again from world bank i came across long time ago, Indian business men are pretty dodgy in there dealings which makes them notorious and untrustworthy for carrying out any business with them.

 

[Spring Onion]

weell yarmok im not good business matters but it dosnt mean that Indian businessmen are more careful?

 

[Bushroda]

couldnt agree more with this article


accoridng to an article again from world bank i came across long time ago, Indian business men are pretty dodgy in there dealings which makes them notorious and untrustworthy for carrying out any business with them.

Did you come across an Indian businessmen or is it a figment of your imagination?

 

[Bushroda]

weell yarmok im not good business matters but it dosnt mean that Indian businessmen are more careful?

Why India isn't considered an easy place to do business is for the reason that Indian government doesn't allow foreign companies to hold 100% equity in any business apart from the infrastructural projects. And given India's past experiences with East India Company, the government is threading carefully in allowing foreign companies in India. If any foreign company wishes to either invest or start a business in India they have to look for a local partner to tie up with just as Walmart had to tie up with Bharati group. This is the same reason why India gets only 16 billion dollars in FDI whereas China receives $70 billion.

 

[BATMAN]

This is the same reason why India gets only 16 billion dollars in FDI whereas China receives $70 billion.

Do you regret Indian policy, which you claim is responsible for lower FDI than China?
Do you expect Indian govt. freeing its market 100% in near future?

 

[Bushroda]

Do you regret Indian policy, which you claim is responsible for lower FDI than China?

There is a mixed bag of feelings here.

On the look of it, it doesn't seem to have effected too much. Government of India has allowed 100% FDI in Infrastructural projects which is good. Whereas in other sectors, foreign investors have to go in with the local partners which has helped local companies to florish. These companies compensate for the lower FDI by raising up money from International market through bonds & stocks. Portfolio investment India receives every year is huge. So raising the money is not an issue.

But maybe, under deregulated policy, India could've got more business & could've had its GDP growth atpar with China. Its just a feeling though

Do you expect Indian govt. freeing its market 100% in near future?

Not for the next 12-15 years. Maybe after 2020.

 

[Jini]

wht the hell !wht your country has to do with indian economy ?or even its the place to business or nit ,i have read the article where you didnt expailn the position of pakistan ?morever you peaple are mentioning the position of india,why are you peaple not analysing that you are also not good for the business inprocess ,morever you peaple knwo very much this answere than me

 

[Bull]

couldnt agree more with this article


accoridng to an article again from world bank i came across long time ago, Indian business men are pretty dodgy in there dealings which makes them notorious and untrustworthy for carrying out any business with them.

Yes very true. After US we have the largest number of $ billionaires. What more proof do you need to say that we are dodngy and notorious.

Ps: This place is full of **** idiots like these.

 

[Cheetah786]

wht the hell !wht your country has to do with indian economy ?or even its the place to business or nit ,i have read the article where you didnt expailn the position of pakistan ?morever you peaple are mentioning the position of india,why are you peaple not analysing that you are also not good for the business inprocess ,morever you peaple knwo very much this answere than me

whom ever you are (obviously hiding behind a different flag).your lack of knowledge about business startups in Pakistan is obviously Nil to nothing.
why don't you share with me your bad experience you had for a business start up in Pakistan.as you are applying people at world banks are idiots.

THere is only 1 thing thats making pakistan economy from shooting through the roof is the security situation.
pakistans tax rates are better then most countries.
our infrastucture is excellent.
we allow 100% ownership.

bull
Yes very true. After US we have the largest number of $ billionaires. What more proof do you need to say that we are dodngy and notorious.

difference between American billionaires and Indian ones is Americans made the money with there own intelligence.
every one of the billionaire in USA started there business from scratch competed on the open markets raised there own financing without any government hand outs.
Indians are all the owners of monopolized taxpayer subsidized businesses.thats why Indian government wont allow 100% foreign ownership as they no most of these so called billionaires cant compete on fair grounds.
before you go on to tell me some thing i suggest do look into it your self how a government started factory ended up in private hands without paying a dime back to Indian taxpayers.

 

[Bushroda]

difference between American billionaires and Indian ones is Americans made the money with there own intelligence.
every one of the billionaire in USA started there business from scratch competed on the open markets raised there own financing without any government hand outs.

Intelligence isn't a commodity gifted only to Americans. There have been several instances where American businessmen have piggybacked on the government supported policies. American automobile industry is full of such instances where the business was protected from competition from Japenese. During 80s, General Electric was protected from competition from German companies Philips & Braun.

As for Indian businessmen are concerned again there are several such instances of self made billionaires. Infosys Chairman Narayan Murthy is one who started the company 24 years back with a capital of mere Rs.19000. Wipro chairman Azim Premji is another who made his billions after having inherited a small company making edible oils & poppadams. Take Real Estate where 100% FDI is allowed has two billioaires, DLF & Unitech.

Indians are all the owners of monopolized taxpayer subsidized businesses.thats why Indian government wont allow 100% foreign ownership as they no most of these so called billionaires cant compete on fair grounds.

Tata have got their presence in 55 countries & they are competing with the topmost firms in the world there. Several Indian IT companies are opening offshore development centres in various countries including US. They are competing with the US companies on their home soil. I suppose somebody forgot to tell them that they cannot compete on fair grounds.

 

[Cheetah786]

Bushroda;104100]Intelligence isn't a commodity gifted only to Americans. There have been several instances where American businessmen have piggybacked on the government supported policies. American automobile industry is full of such instances where the business was protected from competition from Japenese. During 80s, General Electric was protected from competition from German companies Philips & Braun.

Hate to tell you mate American automobile industry has never been protected by competition if that was the case no Japanese or korean company would succeed in America get your facts straight.piggy backing on policy is what business does in every country.monopolized business totally different ball game .zero competition means u can charge what ya like and people will pay as they have no choice but to pay.on the other hand Hyundai and others have protection given to them by there own countries against American auto giants.and if democrates come in i think that fights is going to start as unfair trade advantages given to foreign auto companies are taking a big bite out of Big3.

As for Indian businessmen are concerned again there are several such instances of self made billionaires. Infosys Chairman Narayan Murthy is one who started the company 24 years back with a capital of mere Rs.19000. Wipro chairman Azim Premji is another who made his billions after having inherited a small company making edible oils & poppadams. Take Real Estate where 100% FDI is allowed has two billioaires, DLF & Unitech.

Wipro chairman Azim Premji is another who made his billions after having inherited a small company making edible oils & poppadamslast i checked wipro is IT company

Tata have got their presence in 55 countries & they are competing with the topmost firms in the world there. Several Indian IT companies are opening offshore development centres in various countries including US. They are competing with the US companies on their home soil. I suppose somebody forgot to tell them that they cannot compete on fair grounds

.

Are you telling me Tata didn't have the monopoly in India are you telling me Indian taxpayers didn't support Tata.
IT companies are opening up in different countries again not because of they are competing in open markets.average programmer in California use to make $75,000 us dollars starting from and go up.Indians are doing the same job for $12000.us /year.so they made there money cause foreign companies outsourced there services to save money ( is nothing wrong with that as long as its a same playing field allowed to others to operate in India)thats where your protection in India comes up to protect Indian companies.whats that mean it means government protection.
an Indian can go and open a store in USA without any problem why walmart wasn't allowed to do the same in India.afraid of little competition are we.or Indian government was afraid walmart will come in and undercut every body out of business.just like the Indian IT industry did to Americans.

 

[bhangra12345]

wipro is an acronym- full form is- Western India Vegetable Products Limited;

Wipro Technologies - Wikipedia, the free encyclopedia

Wipro was set up in Amalner, Maharashtra in 1945. Primarily an edible oil factory, the chief products were Sunflower(the reason why its symbol is a sunflower even now) Vanaspati and 787 laundry soap (a by-product of the Vanaspati operations). The company was called Western India Vegetable Products Limited; it had a minor presence in Maharashtra and Madhya Pradesh.[2][3] In the 1970s and 1980s, it began to expand and made forays into computing. In 1975, Wipro marketed India's first homegrown PC.

 

[bhangra12345]

Hate to tell you mate American automobile industry has never been protected by competition if that was the case no Japanese or korean company would succeed in America get your facts straight.piggy backing on policy is what business does in every country.monopolized business totally different ball game .zero competition means u can charge what ya like and people will pay as they have no choice but to pay.on the other hand Hyundai and others have protection given to them by there own countries against American auto giants.and if democrates come in i think that fights is going to start as unfair trade advantages given to foreign auto companies are taking a big bite out of Big3.

Go into details, you are just rubbing the feathers.

Are you telling me Tata didn't have the monopoly in India are you telling me Indian taxpayers didn't support Tata.

Tata had a monopoly during the time of british. Its growth uptil 1990 was never more than 10-15%. Check out the groups growth after liberalization.

IT companies are opening up in different countries again not because of they are competing in open markets.average programmer in California use to make $75,000 us dollars starting from and go up.Indians are doing the same job for $12000.us /year.so they made there money cause foreign companies outsourced there services to save money ( is nothing wrong with that as long as its a same playing field allowed to others to operate in India)thats where your protection in India comes up to protect Indian companies.whats that mean it means government protection.

simply means we offer better value for money. and I thought business was always about this.
Did you know that Indian IT companies thrived because they had no regulation on them- why the biggest call centre in India uptil 2000 was owned by not by an indian but by GE, which recently sold of its share to some Indian.

an Indian can go and open a store in USA without any problem why walmart wasn't allowed to do the same in India.afraid of little competition are we.or Indian government was afraid walmart will come in and undercut every body out of business.just like the Indian IT industry did to Americans.

never said India was a free economy, the problem was it was not a free economy for Indians themselves until 1990's.

 

[Bushroda]

Hate to tell you mate American automobile industry has never been protected by competition if that was the case no Japanese or korean company would succeed in America get your facts straight.piggy backing on policy is what business does in every country.monopolized business totally different ball game .zero competition means u can charge what ya like and people will pay as they have no choice but to pay.

Google up and read about the duty charge that was slashed upon the Japenese & German automobile manufacturers in US. US only allowed competition when local automobile manufactures had enough capital to play with. They did the same with their chemical Industry during 70s when European chemical industries were barred from entering US market. I think it was resolved in 78(I don't know the exact date.) BTW, what kind of market monopoly are you speaking about? Let me tell you that no company in India has got a monopoly of its own. Tata ventured into Steel industry & They always had competition from the Steel authority of India Ltd(SAIL). Reliance got into Petrochemicals & they always were up against Oil & Natural Gas Commision(ONGC) & Essar Gujrat Ltd. If you are telling me that these companies have prospered simply because there was no foreign competition then GoI has allowed Korean POSCO in India & they have invested $12 billion dollars in setting up a steel plant in Orissa. Let's see how much they cut into Tata Steel's profits.

on the other hand Hyundai and others have protection given to them by there own countries against American auto giants.and if democrates come in i think that fights is going to start as unfair trade advantages given to foreign auto companies are taking a big bite out of Big3.

That is my point.. every country does it & so has US in certain industries(in other industries US had the first mover advantage.. so, no competition there). The reason why they support domestic industry is that they have the ability to set up an industrial infrastructure on their own. So, if India does it then why do you cry foul? Also, after the East Asian economic crisis in 90s, one would be very vary of allowing too much of foreign capital to flow in.

Wipro chairman Azim Premji is another who made his billions after having inherited a small company making edible oils & poppadamslast i checked wipro is IT company
.

It was Azim Premji who turned Wipro into an IT company. Ask any Indian poster here & he'll confirm the story to you. Afterall, they must've all heard about Lizzat Pappad.

Are you telling me Tata didn't have the monopoly in India are you telling me Indian taxpayers didn't support Tata.

Again what are you implying here & what sort of monopoly are you speaking of?

IT companies are opening up in different countries again not because of they are competing in open markets.average programmer in California use to make $75,000 us dollars starting from and go up.Indians are doing the same job for $12000.us /year.so they made there money cause foreign companies outsourced there services to save money ( is nothing wrong with that as long as its a same playing field allowed to others to operate in India)thats where your protection in India comes up to protect Indian companies.whats that mean it means government protection.

What protection are you implying here? Outsourcing is a global phenomenon & how can government protection work here? The last I heard there were more noices being made in US/UK against outsourcing? Now, that would be protectionism. 2004 presidential candidate John Kerry announced that he would ban outsourcing if elected to power. What about that?

an Indian can go and open a store in USA without any problem why walmart wasn't allowed to do the same in India.afraid of little competition are we.or Indian government was afraid walmart will come in and undercut every body out of business.just like the Indian IT industry did to Americans.

I can ask the same question. Why US isn't allowing British retail chain TESCO to open in US? Afraid of li'l competition are we? Organized retail is a new business in India. It'll be a while before the local retailers manage foothold. Once they are are ready they can have their competition. At the moment allowing Walmart or any other global retail giant would mean a death knell for local industry. Afterall, you don't go to a war without your weapons.