As a famous Brazilian writer said: "Underdevelopment is not improvised; it takes centuries to perfect."
I tried starting a manufacturing unit in India
31–40 of 190 posts
Re: I tried starting a manufacturing unit in India
#32It'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.
It's hardly new; the colonial system was set up to prevent India industralising, but was so beneficial to those taking bribes that it was carried on even after independence. Known as the "license Raj".
Re: I tried starting a manufacturing unit in India
#33Author of the article here. Do ask me if you have any questions.
The World Bank (which calculates the annual EoDB rankings has acknowledged that in India, "on the ground" experiences of entrepreneurs differ from what their index shows. As a result they are incorporating survey data/inputs from entrepreneurs who try to do business in India. I think it might be worth trying to contact them. The Indian gov't is typically reactive. However, EoBB is a huge priority for the current admi…
You are right. I see that the central government is fully committed to EoDB.
Also they have done wonderful work in Gujarat by making this process completely online.
And land is a stage subject.
Therefore, this write-up is not targeted at the current central government but at the wrong doings of past 70 years and why India still lags.
Re: I tried starting a manufacturing unit in India
#34I 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…
It is not just about red tape, it is about corruption. Govt. Employees in India join the Govt job only for "alternative" revenue ( bribes ). This process is usually handled by "agents" who knows how much these govt employees expect and provide "easy" services to whoever wants to get shit done.
To take an example a simple thing like driving license takes couple of months to get if one is planning not to involve an agent, but you can get driving license ( without knowing any driving ) in 1 month if you have an agent.
Re: I tried starting a manufacturing unit in India
#35Author of the article here. Do ask me if you have any questions.
Hello Rohan, I'm investigating product development opportunities targeted to companies/individuals investing in the Indian market. Targeted specifically to people like you. I would love to have a virtual coffee chat with you over Google meet or zoom and discuss some of the problems in this space.
I've found your twitter and I can share my contact with you that way (I don't think HN has private messages). Otherwise, my email is my HN username@gmail.com
Re: I tried starting a manufacturing unit in India
#36Earlier quoted context omitted.
How do you think the process would have gone if you agreed to pay bribes?
If I paid the amounts they wanted ~ 10,00,000 (10 lakh or 1 million) Rupees each, it would be done in 7-8 months.
I'm confused by why you wouldn't just pay. If I'm not misunderstanding google, we're talking $60 USD. Which is a pittance.
Re: I tried starting a manufacturing unit in India
#37Author of the article here. Do ask me if you have any questions.
Thanks for the write up. It’s an interesting look into the difference between official federal government rhetoric and the reality on the ground. I’m curious if India has special zones created the way China did for Shenzhen, for example, and if so the process of applying there would be any easier/more efficient?
Land is a state subject.
And as far I can see the central government is really committed to making a difference on the ground as they have done in states administered by them.
There are special zones in India but lot lot less than China or the USA. And all the land in that land bank is sold out where I want to start the unit. (Sangli Niraj Kupwad MIDC)
Re: I tried starting a manufacturing unit in India
#38Earlier quoted context omitted.
The World Bank (which calculates the annual EoDB rankings has acknowledged that in India, "on the ground" experiences of entrepreneurs differ from what their index shows. As a result they are incorporating survey data/inputs from entrepreneurs who try to do business in India. I think it might be worth trying to contact them. The Indian gov't is typically reactive. However, EoBB is a huge priority for the current admi…
You are right. I see that the central government is fully committed to EoDB. Also they have done wonderful work in Gujarat by making this process completely online. And land is a stage subject. Therefore, this write-up is not targeted at the current central government but at the wrong doings of past 70 years and why India still lags.
This is something that’s hard for someone like me to know (living outside India and no experience in setting up a business in India)
Does it make a difference if same party is in power in center and state?
The general consensus I see is that it doesn’t make such a big difference (everyone compares to Gujarat which is reaping the benefits of good admin over last 20 years). Current states have a lot of rot to remove and any EoDB efforts won’t be apparent. Is this a correct understanding of the situation?
Re: I tried starting a manufacturing unit in India
#39This is such an amazing writeup. You are an extremely patient person. I hope this gets some press coverage in India. It is shameful that the whole process is so stuck in bureaucracy
John Stossel did a similar experiment over a decade ago I think. Tried to start a simple business selling hats in a mall in 3 countries-- India, USA, and Hong Kong. In HK he was up and running the same day, USA took about a week, and India never completed his business registration.
Re: I tried starting a manufacturing unit in India
#40Author of the article here. Do ask me if you have any questions.
What can I do to help? Whatever I possibly can do, I will try, I am in Jaipur btw.
I am not trying to offend you but..
this is the problem in india. Should one know someone influential to get things done honestly and ethically?