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I tried starting a manufacturing unit in India

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Re: I tried starting a manufacturing unit in India

#21

Post by rohan_shah »

blahbhthrow3748 wrote: post #9

How does this compare to the zoning process in America? It sounds like OP is trying to build a factory from scratch on land that isn't zoned for factories? It's actually surprising one person can just run back and forth and get all the paperwork versus hiring a lawyer to do it.

Actually there are almost no pre defined industrial zones.

There are very few and most of them are bought out.

I can hire an lawyer or agent to this work, but the cost is very very high. I decided to do it myself to understand the depth of this mess.

Re: I tried starting a manufacturing unit in India

#22

Post by josephpmay »

actuator wrote: post #18

I remember recently reading a lot of articles on India trying to attract manufacturing plants in the country. Do they have to face the same issues as outlined by OP or are they handled differently? Also, are they looking at streamlining some of these processes? I don't have a problem with few of the questions that OP complained about. For example, the health certificate looks like something, they might ask to check f…

Most people are willing to pay bribes, so this is not an issue for them

Re: I tried starting a manufacturing unit in India

#24

Post by blntechie »

I think what the OP went through is pretty much re-zoning of an agricultural land to commercial/industrial land which probably will run into similar roadblocks in Western world too? Of course, not saying it will take this long but have heard about similar bureaucracy.

Small town governments in USA at least are very strict with their zoning codes and based on things what I have heard, changing the zone sometimes require even putting the change in a ballot! Mostly requires council approval I guess but the process is similarly full of red tape. I remember a very similar article by someone who tried to start a business at their home in some US state and the red tape he had to go through.

Re: I tried starting a manufacturing unit in India

#25

Post by actuator »

josephpmay wrote: post #22
actuator wrote: post #18

I remember recently reading a lot of articles on India trying to attract manufacturing plants in the country. Do they have to face the same issues as outlined by OP or are they handled differently? Also, are they looking at streamlining some of these processes? I don't have a problem with few of the questions that OP complained about. For example, the health certificate looks like something, they might ask to check f…

Most people are willing to pay bribes, so this is not an issue for them

But is this scalable? A lot of big manufacturing moving now like Foxconn etc is just assembly. What they should want in the long run is to have the whole ecosystem in place.

India has lagged a lot in terms of its peer economies in other parts of Asia which almost started at the same place in the last century. I know they did liberalisation later than most, but they haven't catched up well even after that.

Re: I tried starting a manufacturing unit in India

#27

Post by jeffreyrogers »

asdfasgasdgasdg wrote: post #4

It's interesting because you can see how theoretically any of these requirements would be a reasonable step before starting a manufacturing operations. I know in silicon valley for example many environmental problems were caused by insufficient oversight of manufacturing. However, the road to hell is paved with good intentions, as described in the article. I'm sorry to hear this is happening and I wish you good luck…

There's an economist who calls this "premature imitation". Basically India has adopted a lot of ideas that (arguably) make sense in more developed economies but that prevent India from developing to the point where those policies are actually beneficial.

Re: I tried starting a manufacturing unit in India

#29

Post by steffan »

gaff33 wrote: post #3
rohan_shah wrote: post #2

Author of the article here. Do ask me if you have any questions.

How do you think the process would have gone if you agreed to pay bribes?

One thing to note to, is that any American citizen would be unable to set up manufacturing this way because it is explicitly illegal for U.S. citizens to pay bribes to foreign governments. [Foreign Corrupt Practices Act - FCPA]

https://www.investopedia.com/terms/f/foreign-corrupt-practic...

(Although given this account from presumably an Indian citizen, I can't imagine in any way recommending a non-local attempting this)

Re: I tried starting a manufacturing unit in India

#30

Post by rohan_shah »

blntechie wrote: post #24

I think what the OP went through is pretty much re-zoning of an agricultural land to commercial/industrial land which probably will run into similar roadblocks in Western world too? Of course, not saying it will take this long but have heard about similar bureaucracy. Small town governments in USA at least are very strict with their zoning codes and based on things what I have heard, changing the zone sometimes requi…

Yes that's right. It's similar.

But the problem is that the whole of India is made up of hundreds and thousands of small towns. And there are hardly any land banks zoned as industrial land because almost all of India is fertile land.

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