Shaifaly Girdharwal
You will agree with if you ever tried to start a venture in India. When I go to conferences and take part in discussion people say Indians are not that innovative, creative and daring to build something like Google, Facebook, LinkedIn, freelancer, okay I see we get the technical knowledge late so people around the world capture the market before we can enter it. But in FMCG…we are the biggest consumer market still HUL is largest seller here, why not an Indian company. If MacDonald can sell us burgers then why can’t we. By the way I know some people can oppose me by telling the number of software engineers in Silicon Valley or will count me a number of people on high rank responsibilities in big corporates.
Let me clear in advance, my concern is why we are CEO’s but not the owner…why we are a good suitable to handle that company but not to conceive, form and grow it. One more clarification I am not opposing any corporate. And I appreciate all ventures and their regard their success. I am a citizen of India and I am also running a venture. Now I am going to tell how we kill the ventures and why there are no big ventures in India.
1) Government policies: Let me start from the poorest of ventures. Recently In Delhi, Capital of India, E-Rickshaw was introduced. Some venture mind rickshaw pullers find it a good opportunity and they borrow money to buy them so as to increase their earning and have a better life. There were other benefits also. It was a zero pollution vehicle, It was a better option for users also. Then for an accident in which a child was died Supreme Court banned them and asked government to make a policy for safety. Although many a times people died by accident of car, train, plane but nobody ban them. Now poor people who borrow at 2-3% per month have ever worst life.
This was the basic example how things work here. Biggest of business houses have to face the same problems. Even Vodafone in 2G scam, they were not a party to scam still their licence was also suspended.
2) Shift of power:Let me make it clear by another example. Government announce a project and ask for bids. Companies bid there and get the project, then companies borrow from the bank to start work on it. After one or say two years government change and project is cancelled. No proper communication, no reason, and yes in first phase may be they have spent in paying bribe at various levels. Now pay the interest and wait for the day you will find some mediator to approach ministry.
3) Compliances: I can’t explain all the compliances but let me list some Act’s we need to follow.
- Income Tax Act,1961
- Companies Act, 2013
- Service tax Provisions
- VAT/ Profession Tax Provisions
- FEMA / RBI
- Excise Duty Related Provisions
- Custom Duty / DGFT Related Provisions
Even when we don’t have money to hire sales people we have to hire people to look after for all of this compliance. Also even after that you case is in scrutiny you will have to pay under the table to Income tax people
Think a hundred times before starting a new venture here.
Well I absolutely agree with what you said in terms of business parlance but you are legally incorrect, If you have read the Indian Constitution, everybody means Government, Judiciary, eXecutive & even every person living in India has to follow certain rules.
Government even though no is stopping them, they are supreme a common men understand this concept, is totally wrong. SC didn’t ban e-rickshaw because a poor people died, even if a rich died nobody cares but SC ban those vehicles because they are not permissible by law to run on roads. Everything needs to be certain,controlled & regularized. This system follows in every country.
Second thing you said about Government policies, they change & generally create hurdles in following their promise but in practicallity you have to understand this concept, government is not a single entity but a group or bunch of people co-ordinating certain activities so if some corrupt officers do some malice, Government was forced to save public money due to which they were compelled to change the system & take action against corrupt officer
Third, so many laws, compliance is needed. You can’t override those becuase they are necessary to fulfill certain objectives with some sort of regularization.
In short, i justify the single window system concept is necessary instead of mutiple followup procedures, but everybody is bound to follow the constitution.
Well Shaifaly,
U have really hit the bulls eye. But this is just the tip of ice-berg.
How about killing budding talent/merit by lopsided reservation policies, where the super rich with suitable cast and no merit can land at any institutions they please and the brilliant but poor and from unsuitable cast have their dreams shattered(even the rich and brilliant but of unsuitable cast) right from admissions to educational institutions.Forget about careers for these set of youngsters.As for government’s consistent policy to encourage business there is none(as far as the consistent part). On the contrary the government of the day can even resort to retrospective amendments to seek vengeance. Business in India is a crime where unless you make the babus your business partner(under the table)no businees can flourish.
You are Correct I Support this …..
Very True!
very well written
even i personally believe that the overall scenario is to blame more. the govt. should provide proper infrastructure to its citizens so that the entire country may flourish
however; the attitude of the citizens is also to blame.
eg. who will explain why we spit on the road by opening the door of a swanky running car but if we go abroad we do not dare do that!
Mam,
Agree with your above article.
Hi Shaifaly
I read your article and I felt that you suffered a lot while setting up your business. I know this “One Cannot Clap with one Hand”, if there are problems in the system then we have somewhere played role in increasing the same.
I think the reasons you have mentioned for killing entrepreneurship in India, do prevails in other countries as well. If a person is starting any new business for which there is no law in the country then there will be challenges to continue with that like you mentioned and there are many others like when the Franchisee Model came in or E-commerce came..still there are so many issues with taxation of e-commerce transactions. But that doesnt mean one should not pursue for their business idea or should not think about going into business. It happens everywhere in the world whenever a new business model came in, Govt has to make law to regularize the same like SEBI came in to protect stock exchange transactions and IRDA came for insurance sector.
One should do planning of how to manage these challenges and how to sustain during that period that’s all. You talk about big ventures…there are so many names from India in IT industry which are doing best in the world.
I accept that there are so many hurdles in doing business in India like Stringent & Unstable Rules and policies which makes it tough to do business here but I believe soon it will be settled.
Your comments on above is welcome (info@ashishca.com).
Regards
Ashish
Right indeed.Problem is like in Africa in India.Bribes galore. Government policies are not stable even for a full year as a lot of meddling by ministries and public servants who really many a time are ore centered on how to get bribes instead of developing economy of the country but his or her own individual personal cash flows. that s the bane of the system.
Day in and day out Wednesbury unreasonable approach is present in all the activitites the author listed.
for example income tax officer misuses his tax law, by issuing scrutiny notices even after his notice is a bad in law notice u/s 143(2)(ii), just to get under hand deal with the help of some incorrigible professionals .
taxpayer ignorant of laws are threatened that we will do this and that that way income tax man uses sec 271(1)(c) though not really applicable and yet he uses just to extract bribes for tax officers’ advantage.
how entrepreneurship can survive is anybody’s guess!
so the article is true we are experts in killing entrepreneurship!