Time to wake up- Darkness to Light
Bureaucrats-Officers or public servants
At the time of independence our government decided to continue with the same system of bureaucracy that is nothing but a body of non-elective government officials or at best an administrative policy-making group behind the curtain in the name of democracy. Now, everyone knows that British did it in their own interest to earn as much money looting the public filling their own pockets and exchequers of the government. Bureaucracy in my view is a system that works against all ethics of set public interest stated in democracy run by capitalistic people in the interest of only capitalists. The Bureaucracy doesn’t mind anyone making favors in returns in the name of gifts and bribes that’s been increasing by the day. The worst of this system is to hide the information from public in the name of secrecy and the situation progressively deteriorated with the increased involvement of Indian politics that was interfering more than ever before. Indian politics in power used bureaucracy as per its own needs and the higher officers did not speak a word against the system as they were equal partners in the loot. The need is to attach the government services with the welfare of poor public and the best of the cure is to stop calling them officers but they should be addressed as servants that they actually are.
What to do now
To improve the living standard of public and developing economical condition of India we should immediately make changes in our policies. Let’s begin with the recently held world economical forum the first ever international forum after the present government came into power that was more or less a chance to gauge the mood of investors especially the foreign investors as how they saw at the opportunity. It was an occasion to check with their mood whether they still believe in changing Indian conditions at higher bureaucratic level or still looking at them with suspicion. Too early though but the positive point at the summit was we discussed thoroughly. The important point was the inaugural lecture delivered by our Finance minister that was somewhat reassuring describing the changes that have taken place in last couple of months besides the changes being put in coming months to make things simple and transparent. I think the transparency is the keyword here.
I am expecting they will look to take further steps in coming months towards matters related to GST and I am far more confident as one of the senior members of this site said congress is also willing to support government on this particular issue. Let’s hope every party will come forward and support the government on different issues especially the one related to insurance regulatory issue beyond all affiliation to any particular party based stands. However, one thing is for sure the mood of the investor is positive and they are looking forward for the further changes with a positive attitude.
The problems investors face
Most investors feel that they have to go through too many formalities, official sanctions and red tapism. It’s lot of effort to get sanction from the ministry concerned. This is not at the ministries concerned only but the relations in between the governments at center and at state level too especially if they belong to different parties. All such matters make a big difference on the minds of investors and they try to find safer places. If you remember the case of Tata Motor’s Neno cars issue where Tatas’ had to lose a large amount and had to chose a different state.
That is true up to a large extent that every businessman goes through ease related to his business in a particular country or state and India stands at too lowly a place of 142 out of 189 in the world as far ease of business is concerned. I think this is one of the biggest drawbacks bringing investment to our country and our PM knows about that is the reason he has been touring around the world to reassure global investors to come to India and see the difference. The latest in the list is Australia in the list where they are expecting to put up a bigger show. India has a target to reach within 50 top countries although it will not be an easy task to achieve in near future.
Ease of starting a business
Actually there are number of problems involved while starting a business and if you ask me my personal experience I faced 33 problems to be precise but I would mention ten of the main problems which are most difficult to handle for foreign businessmen. These include-
1- To get the sanction
2- Electric connection
3- Registration of property or land use change
4- Getting the sanction of loan
5- Security of investors in certain areas
6- Application of trade treaties
7- Bankruptcy formula
8- Overseas trade
9- Pollution certificate
10-Permission of construction
If you know about Indian conditions you will see that some of these are too difficult to overcome even if you spend enough money under the table. Indian investors know how to handle this but when the foreign investors face these problems they either stay away or withdraw their applications. India’s reputation is not good on couple of points especially application of agreements, permissions regarding different sanctions and bankruptcy rules have worst reputation for the time being at least. As I understand India takes more than three years issuing necessary permission whereas same permissions are granted within couple of months in countries like China and Singapore.
We understand Indian government is trying its best and has taken steps to expedite such decisions reducing number of rules and through single window procedure that will effectively reduce the cost of projects and industries will see the day light much faster than in the past. The government of India is providing facilities to provide registration of all departments in a single day and reduction in taxes to attract the manufacturers.
Make in India
Most of us are very well aware about the well publicized scheme of PM Modi now that has decided to attract investment by setting 46 point programs that will include lesser rules, faster disposal of case related to registrations in different departments, online facilities of payment of different taxes, GST related problems and many other unnecessary procedures which create hurdles in smooth sailing of healthy environment of industrial development. People with business background understand the need to scrap the rule of minimum tax law, to make it understandable I will use the example of electricity department charging minimum amount even if no consumption made in a particular month or telephone department charging a fixed amount even if not a single call made etc. Our government will have to look into all these problems that keep entrepreneurs taking interest in setting up business in India or in particular states.
What is expected of government?
There are simple solutions to solve these problems, which our previous governments failed to look into seriously or should I say our bureaucracy overlooked intentionally in their own interest as well corrupt political interests. We shall have to set our regulatory right that has multiple options to fulfill that is not only time consuming but increases the cost of project as well. As far India’s rules and regulations are concerned these are too complicated and unhelpful in creating a business increasing environment. Let our regulatory bodies have clear set of rules with powers to settle the issues at their disposal. That will help speed up the process but we shall have to keep a very crucial point in our mind at this juncture that people sitting in these authorities have proven track record of honesty and willingness to work. The other point is related to state and central government’s coordination because this is another issue that keeps projects pending for years as clashes of egos is the main problem in such matters. I was hearing attack and counter attacks in between our PM and CM during PM’s Varanasi’ visit yesterday involving a land for a particular project for weavers. This technique or practice of gaining an advantage or feeling of superiority over another person is fine as far politics is concerned but spoils the game of development where it should be India first. We should have one formula for industrial development with identical rules and taxes in every state and there should be a perfect coordination in between all regulatory bodies. Every single hurdle must be dealt on priority basis to step forward toward the success.
Next step- Law and administration
We should get rid of rules that demoralize the confidence of investors in setting up the business in India especially where business treaties are concerned. The problem multiplies where the rules are not clear and everyone decodes as per his own designs. In fact there is no transparency in our industrial rules besides there are too many bylaws which are hard to understand. The immediate need to sort out the matter is to set up a system that will settle the issues speedily under an effective company law tribunal. And that will not work efficiently if there is no reformations of administration at priority level to stop red tapism which is perhaps the worst in India compared to anywhere in the world. Therefore the need of the hour is to make simple rules and lesser in number.
Infrastructure
This is one of the main drawbacks that need to be improved immediately. No country however liberal can attract business from any source internal or external if there are no proper facilities of basic infrastructure namely, roads, harbors, railway and electricity. We are very poor on these all. I don’t know what were the reasons our previous governments were sleeping over these simple issues so far? There is no proper water management, no electricity projects no plans for coal which is available a plenty in our own country but gross mismanagement has spoiled the system to the extent it will take years to restore it. I have reasons to believe that almost 50% of coal that starts from calories to thermal power plants goes to black market and whatever coal reaches to plants is mixed with stone and water to account for the weight. There is a huge coal mafia network active that takes maximum benefit in collaboration with coal management and contractors involved in it.
Crucial period for industrial development
We should understand that next few months are crucial for our future development in industrial sector. The atmosphere for the investment in India is just right as the investors are feeling a remarkable change in the investment sector in India. The markets are touching newer heights every day. The CEOs of different multinationals are approaching Indian government in different sectors showing their interest for setting up business in India. Foreign governments ready to cooperate. Perhaps the time is just right to go all out to capture as much as we can keeping our priorities in our mind. This is high time we take full advantage and at the same time test the growth rate related realities as well. India needs to change its policies to eradicate the poverty we are facing for such a long time. If we succeed doing that the quality of life of its people will change for betterment and we shall be looking at the world with our heads high. I feel there was never a better atmosphere in the country as far industrial development is concerned.
Conclusion
I started this chapter with bureaucracy of this country that was the reason of country’s downfall together with dirty politics that was what we received as a gift from our foreign rulers. It’s high time we should get rid of that tie and suit culture and come in the practical world. Te time is ripe for tasting the fruit of our own success stories with our own labor and efforts. Let’s get up from all petty party politics and walk toward a better country for the sake of our coming generations. We have left the era of darkness behind and sun is looking at us from the horizon. Let’s stand and welcome it. As they say ‘tamso ma jyotirgamaya’ from darkness to lead us to lights
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