Sunday, April 22, 2012

Ease of doing business in India

India ranks among the world's worst countries at encouraging entrepreneurs. According to World Bank, for ease of starting a business, India is ranked 166th out of 183 countries, just ahead of Angola. And there are many factors at play that thwart the ambitions of those who want to make it on their own. For starters, doing business in India is tough. Reams of red tape and poor infrastructure are serious obstacles which are quite difficult to overcome with inadequate financial resources. Further, big companies have privileged access to land and government contracts, a benefit not enjoyed by their smaller peers. Then there is the question of corruption and bribery, ills that have simply refused to go away as governments over the year continue to remain tainted with it. Then there is the question of the mindset of Indians who are averse to risk taking and would rather settle for secure salary paying jobs. 

Of course, many of these problems are nothing new and there are companies which have managed to make a name for themselves despite these issues. But in an environment where the balance of power is gradually shifting towards the East and India is harbouring ambitions of becoming a global power to be reckoned with, these basic issues need to be addressed on an urgent basis. Entrepreneurship and innovation is an important way in which India can carve a name for itself in the global economy. And efforts by the government to encourage this will surely go a long way in changing the mindset of the Indians as well.

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