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I tried starting a manufacturing unit in India

superr.in

51–60 of 190 posts

Re: I tried starting a manufacturing unit in India

#51
Try building a factory on farmland in, say UK.

This doesn't seem to have anything to do with 'starting a manufacturing unit', but everything to do with completely legitimate government land-use planning / zoning rules, etc, albeit a seemingly inefficient process.

The author should have performed due diligence on that process before embarking.

Re: I tried starting a manufacturing unit in India

#52

Earlier quoted context omitted.

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 an…

I'm not too familiar with India either, but I figured that if the same party were in power in Maharasthra, then they would be able to apply pressure to the civil servants who were witholding their signatures (perhaps in exchange for non traceable Electoral Bond purchases)

Also, India has a unique federal structure where states can override central laws.

Re: I tried starting a manufacturing unit in India

#54

Try building a factory on farmland in, say UK. This doesn't seem to have anything to do with 'starting a manufacturing unit', but everything to do with completely legitimate government land-use planning / zoning rules, etc, albeit a seemingly inefficient process. The author should have performed due diligence on that process before embarking.

Except the fact that all land in India is a farmland.

Re: I tried starting a manufacturing unit in India

#55

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

Have you seen John Stossel's attempts to start a business in India as compared to USA and HK? My condolences to you, friend

No I hadn't heard of it. Will check it out now.

Re: I tried starting a manufacturing unit in India

#56
post #32

Earlier quoted context omitted.

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".

> the colonial system was set up to prevent India industralising

Hardly. The colonial system started to evolve from approx 1600 [0] but industrialisation [1] didn't start in the UK until at least 150 later

[0] https://en.wikipedia.org/wiki/East_India_Company

[1] https://en.wikipedia.org/wiki/Industrial_Revolution

Re: I tried starting a manufacturing unit in India

#57
post #8

Earlier quoted context omitted.

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?

I'm sure u/eklavya is aware that this is the problem in India. This is why entrepreneurs with low political influence participate in low capital businesses (ie import export). They move into more capital intensive businesses (ie oil refineries) only when they have bought political influence.

It makes sense right? Why invest capital when you risk losing the value of your investment due to arbitrary bureaucratic hurdles like the ones faced by OP? This is the strategy Relience used in the past.

Re: I tried starting a manufacturing unit in India

#58

Earlier quoted context omitted.

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.

1. Its not a small amount in India. Lot of families live on $ 100 per month 2. SOme people worry about how their goal is achieved than achieving in anyway possible

Re: I tried starting a manufacturing unit in India

#59

Try building a factory on farmland in, say UK. This doesn't seem to have anything to do with 'starting a manufacturing unit', but everything to do with completely legitimate government land-use planning / zoning rules, etc, albeit a seemingly inefficient process. The author should have performed due diligence on that process before embarking.

You're missing the point. He's not saying he's against any of the documentation. It shouldn't be this hard, re-zoning or not.

Re: I tried starting a manufacturing unit in India

#60

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.

Having now done all of this yourself, do you think the amount they charge is reasonable, given how incredibly painful it is to do this on your own?
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