I tried starting a manufacturing unit in India (2020)
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Re: I tried starting a manufacturing unit in India (2020)
#2(from August 2020, FWIW)
I wonder what it would take to digitize this whole process, so that a single application can trigger all the relevant approval requests, and the overall status can be tracked -- both by the applicant, and at the systemic level to see whether certain departments become (cough) bottlenecks.
Re: I tried starting a manufacturing unit in India (2020)
#3I tried buying some land but it was very difficult to get some agri land without significant cash in the area i was looking for. Paperwork is never perfect, but to make it acceptable you need to feed the right people.
Re: I tried starting a manufacturing unit in India (2020)
#4If building something on agricultural land is hard, it is good: it is called agricultural for a reason. Maybe buying a parcel of industrial or commercial land would have ended up cheaper?
Re: I tried starting a manufacturing unit in India (2020)
#5[deleted]
Re: I tried starting a manufacturing unit in India (2020)
#6> Yes, you need to obtain “permission” before you build any manufacturing structure on your own land with your own money. This permission is called the NA or Non-Agricultural Certificate.
Well, I though it was this way everywhere in the world. In Europe, at least, you cannot build anything on agricultural land unless it is a n agricultural structure or you get the classification changed, which is not easy.
Re: I tried starting a manufacturing unit in India (2020)
#7This person forgot to pay the right people.
Re: I tried starting a manufacturing unit in India (2020)
#8India's obsession with paperwork is unceasing and baffling. Everything requires an application, even when everything can be done digitally. You need letters and stamps to get anything done.
Case in point: the "company stamps" that are required for everything you do with your business. From getting a debit card to changing the maturity instructions for a corporate deposit, you need to sign your name AND stamp it with your company stamp.
The company stamp can be made by anyone for $1-2. It has no bearing on security at all. Yet, you need to carry it with you if you want to get anything done.
It's utterly baffling. I can access my corporate bank account online and make any number of transactions, yet if I want to apply for a debit card, I need my company stamp and signatures from all directors.
Why? I have no idea!
Re: I tried starting a manufacturing unit in India (2020)
#9> Yes, you need to obtain “permission” before you build any manufacturing structure on your own land with your own money. This permission is called the NA or Non-Agricultural Certificate. Well, I though it was this way everywhere in the world. In Europe, at least, you cannot build anything on agricultural land unless it is a n agricultural structure or you get the classification changed, which is not easy.
Everything is right in theory. This article is about how difficult it is for a small entrepreneur, you essentially need big pockets and right connections to start something even very small.
All this does is creates a set of entrenched local businesses which run hand-in-hand very transparently with local political interests. This is the whole reason Western folks never understand why China succeeded so fast, it is because they made the trade-offs necessary for growth. For rapid growth you cannot make everyone happy right away.
The good thing about India is that e-Governance initiatives have at least provided some transparency and understanding for the average person which did not exist before.
Re: I tried starting a manufacturing unit in India (2020)
#10India's obsession with paperwork is unceasing and baffling. Everything requires an application, even when everything can be done digitally. You need letters and stamps to get anything done. Case in point: the "company stamps" that are required for everything you do with your business. From getting a debit card to changing the maturity instructions for a corporate deposit, you need to sign your name AND stamp it with…
Countries with high paperwork and bureaucratic burden are famous for also being highly corrupt. This is probably not a coincidence. Likely all the excess paperwork makes it easier to hide what's really going on, easy to provide roadblocks for those who don't pay, and easier to generally hide bad activity in a sea of noise.