Make in India-A failed program-Modi Inc to rethink - Business & Economy - General Economy - TIK Share

Make in India-A failed program-Modi Inc to rethink


CA Pulkit Sharma

2016-03-26

How many companies invested or have shown interest to start business or invest in India after launch of Make In India program?

The numbers are very low, Narendra Modi has done and doing great work on foreign relationships but when it comes to results, India is not benefiting.

Make in India has failed and I do not think there is any possibility of it becomes successful unless government together with state governments clears the base level difficulties faced by business owners.

Doing business in India is very tough, it requires lot of mental and physical stamina to run business in India. Regulations are not changed, government policies are still same and babugiri is same, nothing has changed. Without changing anything at base level, what plans Indian government is working on to get investment or business!!!

Logistic problems in India

India needs to redefine its Logistic, Infrastructure, Tax, Legal, Banking and investment environment.

Think of a company operating PAN India, how much pain it suffers in transporting goods from one city to another city or one state to another state.

A truck driver is humiliated at every RTO check post, Police check post, Commercial Tax check post, Excise Check post and if escapes from these than Traffic police at every street.

India needs a strong and effective system to integrate various checking to avoid waste of time and resources. Companies every year lose a fat portion in transporting material, cost increases due to wastage of fuel, money, time, and shifts during checking.

Infrastructure in India needs drastic improvement, it can take up to 5 hours to cross city traffic if vehicle has to pass through a city while moving. In cities like Bangalore traffic has become a monster due to bad roads and bad management.

No company wants to lose money in moving their products; government should focus on removing the difficulties and provide a smooth logistic environment.

Much has been discussed and legal battles are concluded with respect to corporation taxes. Vodafone case was one among many others to show confused stand of Indian law makers. FII taxation, taxing of indirect transactions are still burning issues on which government needs to take a fixed stand leaving no room for confusion and unwanted demand notices.

Indirect Taxes are more horrifying in India, actually not the tax amounts but procedures and way they are taxed. Different states have different and wonderful laws.

Every state have their yearly investment summits, funny thing Karnataka had one recently. Having hold on Karnataka commercial taxes, I was amused how Karnataka could waste so much money on a program without changing its tax laws.  VAT department will not issue VAT registration to outsiders. How can companies do business in Karnataka when VAT law requires documents which are not possessed by 99% of Indians? If your company has a branch in Karnataka, you understood what document I am referring to, it is DOMICILE CERTIFICATE. Almost every businessman and government servants I know, do not hold this document.

We as a country have to work at grass root level to remove these practical difficulties before we pitch for investment or invite companies to do business in India or its states.

On an average if a company has to get registration all over India to operate, almost a year’s time is lost.

Businesses are adopting the technological changes but our laws are still behind. E-Commerce companies are finding it very difficult to do business in India. Some states tax sales at the point of sale, some at the point of delivery.

Conclusion: Instead of making big promises and wasting money on summits, we need to rethink and rework on our basic systems controlling economic and social life.

Make in India change theme

Government has to come out of License Raj, Inspector Raj and Babu Raj. Make laws that are simple, recruit few but effective officers in government departments. We need to change theme of our commercial laws from ‘EVERY BUSINESSMAN IS A FRAUD’ to ‘EVERY BUSINESSMAN IS WORKING HARD AND GOVERNMENT SHOULD HELP HIM’.

Raghavendra Varma

2016-04-07

I concur with you sir.

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