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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

#61

Post by kamaal »

pjc50 wrote: post #32
jeffreyrogers wrote: post #27

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".

One of the most important things post independence was to ensure Indians had the capability to make things on their own. This meant achieving a high degree of domestic capability(Only Indians making things). There had to be a system to enable this happen. At times you have to slow growth to ensure you meet other capabilities.

It's not exactly a conspiracy.

Besides globalization itself is a relatively a new phenomenon and we did get started on that.

Also merely blaming these policies for slow growth is wrong. India has a range of socio-religious problems, which just can't go hand in hand with requirements for high growth economies, that is things like high quality public education, equality of access to opportunity, a degree of fairness in society and focus towards larger goals etc. India is just not there yet. Even domestic political goals are just something else.

Basically India is trying to make Biryani out of Idly batter.

Re: I tried starting a manufacturing unit in India

#62

Post by Danieru »

rohan_shah wrote: post #21
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.

It is wise of you to document this mess, it will surely bring about good.

Re: I tried starting a manufacturing unit in India

#63

Post by OJFord »

econcon wrote: post #23

There is zero benefit of setting manufacturing unit in India. Afaik, most of the manufacturing that happens here is assembly. Unless your product is one of those mass market, multi million dollar revenue makers you'll be eaten alive by adminstrative costs.

I'm a complete outsider, but from my perspective Indian manufacturing seems poised to doubly benefit from increased export at China's expense, and 'patriotic' local sales (even required by legislation in some cases).

Re: I tried starting a manufacturing unit in India

#64

Post by manquer »

momokoko wrote: post #49
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…

Exactly, this is a re-zoning process not “opening a manufacturing plant”. I can almost guarantee this land was purchased for significantly less because it is agricultural land as well. States have plenty of reasonable concerns about re-zoning agricultural land into commercial land. The most obvious being that if there are spills or other environmental issues it could destroy much of the agricultural land around it. N…

The problem is not the number of documents he had to do, he didn’t have major concerns on that .

The bribery expected in many of the depts, broken website, all the delays , lack of responses, after 9 months he is not more than half way into the process is the problem .

If they denied him with valid reasoning early on and communicated in reasonable time this won’t be a problem .

Re: I tried starting a manufacturing unit in India

#65

Post by rohan_shah »

flerchin wrote: post #36
rohan_shah wrote: post #5

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.

Sorry I misquoted.

It would require a total of ~15,000$ USD

Re: I tried starting a manufacturing unit in India

#66

Post by sbmthakur »

[deleted] wrote: post #15
jhallenworld wrote: post #7

Earlier quoted context omitted.

Can you bring media with you when they ask for bribes? Perhaps local news would be interested in publishing it.

[deleted]

I don't think Sudhir Chaudhary or his news channel will count as local news sources in this context.

Re: I tried starting a manufacturing unit in India

#67

Post by linux_devil »

I totally understand setting up manufacturing unit on agricultural land in India is a pain , also you should see it coming as you are using "agricultural" land for manufacturing. Also there is a dedicated industrial zone setup in each states and it would have been easier to do industrial setup there. But I totally get the point, its a cobweb of permissions and N.O.C , not even including under the table settlements , not sure if that was the case here.

Re: I tried starting a manufacturing unit in India

#68

Post by eklavya »

praveen9920 wrote: post #40
eklavya wrote: 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?

Ummm, how did you arrive at the conclusion that I am offering influence political or monetary or whatever? I am embarrassed now since I can't offer any of that :P

Re: I tried starting a manufacturing unit in India

#70

Post by manquer »

calvinbhai wrote: post #38
rohan_shah wrote: post #33

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…

Not too much difference on a transaction level, policy level perhaps , there may be contradictory rules etc.

Delhi has notably had lot of challenges because of different governments , but Delhi administration is not typical state government, it is like Washington DC , there are special provisions as it is the capital region

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