Easier to do business in Pakistan than India: Report

[S_O_C_O_M]

Easier to do business in Pakistan than India: Report ​

World Bank, IFC also accord higher rank to Bangladesh, Nepal​

BY Abhishek Anand
Delhi

Posted on November 04, 2010


India may be thumping its chest for being the second fastest growing economy and being one of the few countries that was relatively unscathed by the global economic downturn. But when it comes to doing business, it fares worse than most neighbours, including archrival Pakistan.

According to a report titled Doing Business 2011: Making a Difference for Entrepreneurs prepared by the World Bank and the International Finance Corporation, India is 134 in a ranking relating to the ease of doing business, while Pakistan, Sri Lanka, Bangladesh and Nepal are ranked 83, 102, 107 and 116, respectively. China is ranked 79.

Among its neighbours, Bhutan, ranked 142, is the only country ranked below India.

Worse, among the nine parameters based on which countries have been ranked, India’s position has declined in five and shown improvement on only three fronts. It has been able to maintain status quo on only one of the yardsticks.

India has shown improvement in terms of paying taxes, starting a business and closing a business, while it has slipped on the counts of dealing with construction permits, registering property, getting credit, protecting investors and trading across borders.

“India is one of the most preferred destinations for investments in the world today and is likely to remain so for next few years,” said DK Joshi, chief economist at credit rating agency and industry tracker Crisil Ltd.

“As far as reasons for India being ranked so low in terms of ease of doing business, this could be because of procedural hassles, time taken in approvals, among others. The pace of reforms, too, is slower than anticipated and all these factors results in lower ranking,” Joshi added.


Tehelka - India's Independent Weekly News Magazine

 

[CardSharp]

All this red tape probably stems back the Gandhian idea that smaller enterprises and tight regulation will not be exploitive.

 

[The HBS Guy]

In India bureaucracy is a major hindrance to business projects but slowly the government is reforming the system.

Of course being a huge democracy, it's not always possible to do as one wishes but the govt. is working on it.

An example is the number of start-ups that have come up in , say, the last 10 years.

 

[nForce]

I have gone through a similar report before,a much more detailed one....

Okay,can someone tell me if it is indeed easier to do business in Pakistan than India,then why more and more business opportunities are coming up in India than Pakistan????

 

[razgriz19]

I have gone through a similar report before,a much more detailed one....

Okay,can someone tell me if it is indeed easier to do business in Pakistan than India,then why more and more business opportunities are coming up in India than Pakistan????

i recommend u to read the article again carefully!
last paragraph to be precise...

 

[StingRoy]

It may be more difficult to get through the bureaucracy before you setup business in India, but to get a business sustain and profitable you need skilled labor, local talent and a huge market for its products. As long as India has all those ingredients, the companies will be more than willing to setup shop in India.

And if you look at past 10 years... it has become a lot easier to go through the paperwork. As we move forward, this process is bound to become more or less a single window clearance.

 

[CardSharp]

then why more and more business opportunities are coming up in India than Pakistan????

Higher concentration of capital and business, greater political stability, higher rate of growth, better human capital. All the usual reason why FDI flow into developing countries.

 

[nForce]

i recommend u to read the article again carefully!

did that..now how about answering the question.....

 

[CardSharp]

did that..now how about answering the question.....

I did even knowing you were fishing for compliments

 

[StingRoy]

I did even knowing you were fishing for compliments

... nForce wants an answer from razgriz19 now ....

 

[nForce]

I did even knowing you were fishing for compliments

explanations and compliments can be two different things....

 

[nForce]

i recommend u to read the article again carefully!
last paragraph to be precise...

“As far as reasons for India being ranked so low in terms of ease of doing business, this could be because of procedural hassles, time taken in approvals, among others. The pace of reforms, too, is slower than anticipated and all these factors results in lower ranking,” Joshi added.

Okay,can someone tell me if it is indeed easier to do business in Pakistan than India,then why more and more business opportunities are coming up in India than Pakistan????

The last paragraph explains why India is being ranked low,it does not say anything about what I asked.......

 

[nForce]

and just a request...please try to refrain from editing the posts after someone has already quoted it.It looks kinda ugly.....

 

[StingRoy]

All this red tape probably stems back the Gandhian idea that smaller enterprises and tight regulation will not be exploitive.

Agree there is still some level of redtape... but more than that there is a genuine concern about environmental issues and the impact of setting up big industries in areas outside the cities.

There are several ultra-mega projects stuck in the approval process because of environmental concerns and impact to local people. This is a recent trend which is getting prevalent,... in granting approval to a mega project in any state because of the scale and number of projects all over the country. Due diligence in alleviating these concerns are the cause of slowdown in getting clearances, but as they say it is better to be safe than sorry.

 

[Kinetic]

India is one of the fastest growing major economies with large amount of investments but red tape and some other issues will never go from India.

South Korean company Posco wanted to set up one of the largest steel plant with more than $ 12 billion investment, which would have been the largest FDI in India as well but thanks to various issues like resistance from few locals, activists and environmental issues, the project is on the verge of cancellation!