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I tried starting a manufacturing unit in India

superr.in

181–190 of 190 posts

Re: I tried starting a manufacturing unit in India

#181
post #152

Earlier quoted context omitted.

I got the impression that the complaint was more about the bribes and all than the regulations meant to protect the land

I agree that the bribes are horrendous. But they're also what you get from a system that incentivizes corruption. You can't expect Indian bureaucracy to be like German bureaucracy, because the incentives are so different for the players at ground level. The alternative is to pay public servants well and charge a very large fee for the permits to finance that. Then, deal corruption on top of that without impunity. How…

[deleted]

Re: I tried starting a manufacturing unit in India

#182
Thanks for confirming (was aware of) the fact that the most of Govt Dept job needs to be get done by citizens themselves for themselves! And one need to pay Extra for getting it done through them. Same situation in Karnataka. Would like to share this on other social media to support you

Re: I tried starting a manufacturing unit in India

#183

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.

In the UK, it will certainly take time to obtain planning permission (AFAIK, we don't have "zoning" as such). But you will deal with one or two departments, and the requirements will be clear. You will not be sent on a wild goose chase across the region, sprinkling money and bribes as you go. Each department you visit will also not result in a further 3 you must visit, like some kind of bureaucratic ponzi scheme. And…

Indeed, western nations are far more sophisticated and generally avoid direct corruption in the processes themselves.

The outcome, however, may still very well depend on 'special' factors.

Re: I tried starting a manufacturing unit in India

#184
post #31

As a famous Brazilian writer said: "Underdevelopment is not improvised; it takes centuries to perfect."

So are you saying the poverty is there by design? People want things to stay the same even if it means stagnation?

Yes. As piva00 said, the elite benefits from the status quo. I think it is something even deeper: people are deeply afraid of change.

Another factor is the laziness of the bureaucracy. Public servants prefer to move paper around than being "permissive by default" and going to the field to verify that things are ok.

Yet another factor is the weak justice/control system. It is difficult to punish bad actors rapidly and effectively after the fact, so the government tries to do as many checks as possible before the fact, which of course doesn't work and makes the life of honest actors hell, but "at least we tried!".

All that said, Brazil is probably much less bureaucratic than India. We Brazilians tend to compare with USA (big country as well, same continent, so natural comparison) but some friends that went to live in EU say bureaucracy is a big thing there too.

Re: I tried starting a manufacturing unit in India

#185

This 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.

Not surprised one bit! Would you happen to have a link to this experiment?

Re: I tried starting a manufacturing unit in India

#186
post #126
post #124

Earlier quoted context omitted.

Can't find the quote. Who was the writer?

Nelson Rodrigues. The original in pt_BR is “Subdesenvolvimento não se improvisa; é obra de séculos.”

So little of his work translated in English, it's a pity.

https://en.wikipedia.org/wiki/Nelson_Rodrigues#Works_in_Engl...

Re: I tried starting a manufacturing unit in India

#187
post #122

Earlier quoted context omitted.

> you would have already received your approval if you were willing to pay a bribe There is a law that prohibits American citizens from bribing foreign officials: https://en.wikipedia.org/wiki/Foreign_Corrupt_Practices_Act

Dude, for things like this you can't just apply Wikipedia knowledge. It's really not enough. Section 78dd–1 is what it looks like in law. Read Section 78dd–1 (b). > (b)Exception for routine governmental action Subsections (a) and (g) shall not apply to any facilitating or expediting payment to a foreign official, political party, or party official the purpose of which is to expedite or to secure the performance of a…

I did not know that, thank you.

Re: I tried starting a manufacturing unit in India

#188

Earlier quoted context omitted.

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.

Not surprised one bit! Would you happen to have a link to this experiment?

https://youtu.be/fmuTTeESEs4 timestamp 3:45

Let it be known that today OP delivered

Re: I tried starting a manufacturing unit in India

#189
post #161

Earlier quoted context omitted.

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 age…

It's the same in the Philippines and other developing countries run by corrupt trapo ("filthy rags") politicians. If you go down to the LTO (Land Transportation Office) to get your driver's license, the entrance is crowded with "fixers" who, for a fee of course, will take care of your license for you and even take the driving test for you. There is no enforcement in terms of making the applicant take the driving test…

2 - 7 days? In Finland it takes 10 - 14 weeks :D There are mandatory theory and driving lessons to take. Well actually the law changed recently so now it takes "only" 6 - 10 weeks.

Re: I tried starting a manufacturing unit in India

#190
post #161

Earlier quoted context omitted.

It's the same in the Philippines and other developing countries run by corrupt trapo ("filthy rags") politicians. If you go down to the LTO (Land Transportation Office) to get your driver's license, the entrance is crowded with "fixers" who, for a fee of course, will take care of your license for you and even take the driving test for you. There is no enforcement in terms of making the applicant take the driving test…

2 - 7 days? In Finland it takes 10 - 14 weeks :D There are mandatory theory and driving lessons to take. Well actually the law changed recently so now it takes "only" 6 - 10 weeks.

I promise you, Finland is a lot more serious about road and traffic safety than the Philippines.
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