On Tue, May 20, 2008 at 8:52 AM, ashok _ <[EMAIL PROTECTED]> wrote: > > Maybe some of these regulations were incorrect to start with ? or maybe > businesses would have still come despite these regulations..? or maybe there > are other regulatory mechanisms not directly related which are to blame...?
Recounting some entrepreneur's experiences in the "Indian manufacturing industry" : 0] gazillion taxes : - Any industry (be it chemical, pharma, food or industrial goods, etc...) are so heavily taxed under different heads that it make your head spin listening to it. The "$industry-inspector" is obviously king of all he surveys and his factory visits induces stress and a mad scramble to keep everything in order, with great care taken to not displease him. - the ITax is another area for harassment. - i am not even touching on the topic of inter-state taxes (sales, octroi, ...) and harassment (local police) issues. 1] Licences : Yep, the L-raj still exists and i'm yet to meet a factory owner who got it done without greasing palms or he should be prepared for raids on flimsy pretexts which of course leads to the cancellation of the licence. 2] Local laws : pretty much open game as it differs from state to state. 3] Theft and pilferage : Need i say more? I remember my 25-minute conversation with one government official (from an entrepreneur course for small-scale industries) who hemmed and hawed around the dangers/negatives that women entering the manufacturing industry would face and was very coy about uttering the word "bribe" in our conversation.
