Setting up any business in India is a herculean task. No wonder, the country was ranked 130 among 190 economies in ‘ease of doing business’, as indexed by the World Bank in 2017. The World Bank research included data from 10 areas of business regulation.
Deepak Talwar explains that among other things, the Bank had found India doing badly in enforcing contracts, and reducing time and cost involved in resolving commercial disputes through local courts.
After the report was out, the Indian Government sought to improve its ranking, and bring the country among the top 50 nations by 2018. A preliminary assessment was carried out by a team constituted on the recommendation of a committee of secretaries in December 2016.
The results found by the task force is not very encouraging though, as ‘paying taxes’ and getting ‘construction permits’ are still hampering the rating. The quality of judicial processes and efficiency of court systems were some of the reasons why India fared so badly in World Bank index, according to the report.
At times like this, when the global markets and economy are under turbulence, it is important for consultancies − both domestic and foreign − to take another look at their advocacy skills and business strategies, and adjust according to the changing trends.
So what has India done to improve the ease of doing business in India? Among other things, steps taken by the government are likely to decrease the complicacy of starting a business in the country: Requirement of the common company seal has been eliminated. A company can now be registered within one to two working days in India.
To understand how red tape affects foreign companies planning to set shop in India, let us look at these statistics. In India, it takes 26 days to deal with 13 procedures, whereas New Zealand, ranked first, takes just half a day for only one procedure. Issuance of construction permits in New Zealand takes 93 days for 10 procedures; India, on the other hand, takes 190 days for 35 procedures.
The question is: can companies understand and operate in this intricate regulatory environment? To help organisations sail through the maze of bureaucracy, several firms offer expert aid.
Deepak Talwar, with his vast experience of working with the Indian system, has facilitated the entry of top MNCs by guiding them about sustained public affairs strategy and policy dialogue. Since the Indian sphere of business has its own caveats and mazes to work through, an expert opinion coupled with years of experience can help international organisations explore the Indian market.
With that said, Deepak Talwar has launched “Doing Business in India” − a homegrown module − based on his three decade-long experience of tackling Indian bureaucracy and the red tapism that comes attached with it.
The module seeks to change the thought process of critical levels of management across organizations in dealing with the rapidly changing regulatory environment of India. Doing Business in India will impart lessons on the complexities of doing business in India, and the impact of red tape on business plans, besides explaining why any government task takes ages to complete. The module will discuss the interplay of the government, politics, business & society.
And while businesses can delve into the complexities of the Indian market, a succinct brief on the intricacies of India, its bureaucracy and its markets can help foreign companies tackle the oddities that India so uniquely presents.