EASE OF DOING BUSINESS IN INDIA

[Vasuki]

While PIB claims that our rank in ease of doing business in India has improved from whooping 140 position to 63 th .
Per 2019 world bank report ( now they stopped publishing) .
As a business owner .
Did it impact small vendors and owners
Or is it just for company ?
Also About Taxation reform which lead to slowdown eventually grew good and tax collection is at all time high ..

Do share your experiences!

Please don't post anything political.keep it neutral at gov lvl .
else post might have to be deleted.

 

[sxchzy]

ease of doing business might have been eased for nmcs due to sez and gift city
for smes it is still pathetic because of the red tapeism

 

[techt]

Would like to CAs to chip in here.

 

[Vasuki]

ease of doing business might have been eased for nmcs due to sez and gift city
for smes it is still pathetic because of the red tapeism

Do you think Sez model of China .need to be worked more on

As we can literally make 3-4 Singapore in
Mumbai, TN ,kerala. , gujarat has it already in making

 

[bsc0008]

For MSMEs it's still pathetic only. Lots of complications in taxation, approvals and have to reach out to multiple agencies in different places.

 

[Vasuki]

For MSMEs it's still pathetic only. Lots of complications in taxation, approvals and have to reach out to multiple agencies in different places.

So are we making progress from past and outlook is good
Or its snail pace what happened was inevitable

 

[bsc0008]

Do you think Sez model of China .need to be worked more on

As we can literally make 3-4 Singapore in
Mumbai, TN ,kerala. , gujarat has it already in making

That's a good starting point. I remember my cousin who worked for a chinese firm, saying they can complete a project from plan to start manufacturing within six month period.

 

[bsc0008]

So are we making progress from past and outlook is good
Or its snail pace what happened was inevitable

Some improvements are there, like able to access the information from portals. But still for lots of approvals the officials are expecting us to visit them or else come through via CAs or professionals. So far we've used the services of GST, MSME, Trademark & FSSAI.
Pain Points Observed:
1. GST - Unable to get refund of the ITC due to some raw materials having high taxation than manufactured product.
2. MSME - Getting registration is hugely improved but since no verification on business is happening, this registration is not accepted much.
3. Trademark - Very huge disappointment. We've been chasing for almost 1 year now. Still waiting to clear objection.
4. FSSAI - Even though applied online, they expect to visit the offices instead of coming to premises. Also got thrown to multiple offices due to confusion on jurisdiction.

Overall, from what I observed if you're a huge firm or a wealthy one then it become easier doing business. Since most of the above can be delegated to a team or professional & you can go on with your day. But if you're a kirana or else a micro startup & you've to be there for all the work to save on cost then it's difficult only.

 

[Vasuki]

FSSAI - Even though applied online, they expect to visit the offices instead of coming to premises. Also got thrown to multiple offices due to confusion on jurisdiction

This is a farse organisation.

Look at what happened to MDH controversy.

They need to reform themselves

 

[bsc0008]

This is a farse organisation.

Look at what happened to MDH controversy.

They need to reform themselves

Thank you for pointing this. I'm not aware of this controversy. From what I've seen the FSSAI is seriously lagging on enough funding or personnel to test all the products. Atleast a random surprise test on products taken from market should be done by them, but that's not happening.

 

[Vasuki]

That's a good starting point. I remember my cousin who worked for a chinese firm, saying they can complete a project from plan to start manufacturing within six month period.

Ofcourse we can't copy China because
In China gov own every inch of land .

& In India we can't even do land reforms.in many states

 

[sxchzy]

Do you think Sez model of China .need to be worked more on

As we can literally make 3-4 Singapore in
Mumbai, TN ,kerala. , gujarat has it already in making

you need to make as much physical approvals into digital
so that red tapeism goes down
then you can expect smes booming

 

[Vasuki]

you need to make as much physical approvals into digital
so that red tapeism goes down
then you can expect smes booming

I don't know much about banks but
Since 2016 banking Npa crisis .

Banks are not giving loans to msme

 

[sxchzy]

banks are being forced due to govt schemes

 

[Vasuki]

banks are being forced due to govt schemes

Let's see what happens in election..
Recent report suggests that
If current gov continue & no hiccups In gov ..
Then by 2025. We would be 4th biggest economy if we grow by 7% .

Earlier estimated time was 2028.

What remains to be seen is if current gov doesn't come & other party comes they didn't talked about any economic reforms .. rather communist model of WEALTH redistribution & plethora of gov jobs .



There should be credit rating for msme like it's for person. This should ease the pressure off banks for npa

 

[theglobalinvestor]

EASE TEASE of doing business in India.

 

[sidp]

Do you think Sez model of China .need to be worked more on

As we can literally make 3-4 Singapore in
Mumbai, TN ,kerala. , gujarat has it already in making

Sez are very bad idea. At least in india, where most sez are front for land grab and tax haven without any growth in actual output.

There is old article by Swaminathan aiyar( brother of manishankar aiyar). Most of his articles are biased (Even factually/logically inconsistent). But I agree with his views on sez. Only decent implementation of sez I see is GIFT.

India’s SEZs need top-class facilities, not tax breaks

India’s exports have been declining for 13 months. To reverse the trend, the commerce ministry wants to exempt exporters in special economic zones (SEZs) from all corporate taxes, including the minimum alternative tax (MAT). This...

timesofindia.indiatimes.com

 

[sidp]

This is a farse organisation.

Look at what happened to MDH controversy.

They need to reform themselves

Fssai is completely useless organization. People have got certification without submitting proper documents/physical inspection.

Both fssai and Arai should be dismantled and it's officer sent to jail for playing with people's life.

 

[Vasuki]

Sez are very bad idea. At least in india, where most sez are front for land grab and tax haven without any growth in actual output.

There is old article by Swaminathan aiyar( brother of manishankar aiyar). Most of his articles are biased (Even factually/logically inconsistent). But I agree with his views on sez. Only decent implementation of sez I see is GIFT.

India’s SEZs need top-class facilities, not tax breaks

India’s exports have been declining for 13 months. To reverse the trend, the commerce ministry wants to exempt exporters in special economic zones (SEZs) from all corporate taxes, including the minimum alternative tax (MAT). This...

timesofindia.indiatimes.com

Whole Singapore, uae , saudi neom city , Hong Kong is kinda a big sez

 

[sidp]

While PIB claims that our rank in ease of doing business in India has improved from whooping 140 position to 63 th .
Per 2019 world bank report ( now they stopped publishing) .
As a business owner .
Did it impact small vendors and owners
Or is it just for company ?
Also About Taxation reform which lead to slowdown eventually grew good and tax collection is at all time high .

Reports and ranking means nothing. Most (all?) Of these are echo chambers to validate own perception. Just look at all type of freedom index( press & what not). India, where so many "journalist" openly abuse pm, fares worse than countries where an indirect question can lead to losing a hand or life.