I am opening up the discussion forum for your class from today on wards and the first topic for discussion will be as follows
Hurdles for doing business in India.
The discussion can be in the form of comments/notes from each of you to be posted in the blog. The discussion will start from 6-00 PM(evening) on 18-07-17 and will close at 6-00 AM(evening) on 21-07-16. All students of class are invited to participate. The discussion will carry 2 marks and evaluation parameters will be innovative answers, contemporary and not overlapping. Please note that copying can be easily caught. Further if you base your comments/answers on any research articles/scholarly articles they will get 2.5 marks. For this you need to give the relevant references along with your comments.Please note that unwanted and overlapping comments will not be considered. Students are advised not to blog during class hours.Answers posted during 9-00 AM to 5-00 PM on any day will not be considered for evaluation
Wish you happy blog discussions.
Hurdles for doing business in India.
The discussion can be in the form of comments/notes from each of you to be posted in the blog. The discussion will start from 6-00 PM(evening) on 18-07-17 and will close at 6-00 AM(evening) on 21-07-16. All students of class are invited to participate. The discussion will carry 2 marks and evaluation parameters will be innovative answers, contemporary and not overlapping. Please note that copying can be easily caught. Further if you base your comments/answers on any research articles/scholarly articles they will get 2.5 marks. For this you need to give the relevant references along with your comments.Please note that unwanted and overlapping comments will not be considered. Students are advised not to blog during class hours.Answers posted during 9-00 AM to 5-00 PM on any day will not be considered for evaluation
Wish you happy blog discussions.
COMPETITION:-
ReplyDeletecompetition has increased. Because nowadays every one is trying to start their own business. We have so many competitors In the market who is giving the same service or producing the same goods to the customers. so you have to be the best.
India which is in the lower middle income category in the world, stands at a rank of 130 among 190 countries according to the DB 2017 analysis (ease of doing business) by The World Bank.
ReplyDelete(Please refer the link below)
Reference: http://www.doingbusiness.org/data/exploreeconomies/india
One of the many factors which has a potential impact on the ease of doing business in our country is the stability of the country’s taxation system.
The other factors are getting construction permits,registering property, time taken to get the inspection done.This is further complicated by the intertwined state and central structures in governance.
The workaround to reduce these hurdles is that, India should adopt a less adversarial tax regime and focus on reducing the number of days in getting the approval for various permits for starting the business. This will eventually result in growth of our economy resulting in millions of jobs.
India is a big country having vast economical potential and with huge natural resources. India is having more working population and fastest growing economy in the world. there is lot of scope to do business in India. but following hurdles are impending the foreign corporate sector to start the business.
ReplyDelete1 Political instability
2 Nepotism in the government decisions
3 lack of administrative reforms to get project approval.
4 Non availability skilled workers
5 Availability of capital
6 High corporate tax structure
7 Bribe in government offices
8 There is no Accountability in government offices.
9 Huge cultural diversity
10 Lack of investments in R&D
11 There are no laws regarding intellectual property rights
Following can be considered as hurdles while doing business in a country like India.
ReplyDelete1.Market Fluctuations
2.Political Influence
3.Huge Competition
4.Diversified Culture
5.No Risk Taking Ability
6.Acquring License From Government
7.Inadequate Use Of Technology
8.Narrow Mind set Of Indian People
9.Lack Of Capital
10.Corruption
The main hurdles of doing business in India are:
ReplyDelete1)Pooling of Investment :There are less number of investors who show interest in investing on new startups rather they prefer investing in well established organisations
2)Loan processing : The processing of loan for the purpose of business takes a lot of time
3)political issues: These political parties also affect the smooth running of business by change of rules, etc
4)payment of taxes : As per http://economictimes.indiatimes.com/news/economy/policy/world-bank-doing-business-report-conveys-half-picture-of-india-official/articleshow/59512210.cms
Time taken in complying with taxation laws and filing returns.The observation that revision of corporate income tax return takes 54 hours and also triggers an audit was a misstatement.
The rate of tax is high
5) Permissions : The initial permissions for the start of business are lengthy and many a times they are rejected for undisclosed reasons
6)Change in business environment : It is observed that a smoothly running business gets a challenge due to change in external environment of the business. This is considered as a hurdle only when the entrepreneur is unable to adapt to the change .
7)Inability to implement innovation in business and no proper allocation of resources in the business
Hurdles for doing business in India.
ReplyDelete1. Infrastructure:- Infrastructure in such areas as electric power, roads and telecommunications networks have not been developed and this is the principal barrier to the enlargement of overseas investment in India.
2. Globalization:- Understanding foreign cultures is essential to everything from the ability to penetrate new markets with existing products and services, to designing new products and services for new customers, to recognizing emergent, disruptive competitors.
3. Innovation:- big companies are struggling with innovation and a better innovation process is at the top of the agenda for most CEOs,
4. Government Policy & Regulation:- It’s true that things seem to have settled down over the past couple of years, but have they really? We find that they haven’t; it’s simply that dealing with an unknown regulatory environment is fast becoming the new normal and companies are deciding to get on with it—whatever “it” may be—despite the angst.
5. Technology:- the pace today makes capital investment in technology as much an asset as a handicap because a competitor may wait for the next-generation technology, which may only be a year away, and then use it to achieve an advantage
6. Diversity:- the lack of diversity within many large company leadership teams leads to a narrow view of an ever-changing and diverse world—contributing to groupthink, stale culture and a tendency to live with the status quo for too long.
7. Supply Chains:- uncertainty in supply, driven by wildly changing commodity prices, an apparent increase in weather-related disruptions, and increasing competition for raw materials makes supply chain planning more challenging than ever.
India has a cut throat competition in today's market. It is very difficult to enter into the market and survive for a longer period of time.
ReplyDeleteNow-a-days everyone is starting their own business and are unable to stay in the market. This is all because of some hurdles which are stopping to do business in India.
Here are some of the hurdles which are stopping the business to enter into the market.
1.No innovation in introducing a product into the market.
2.Permissions for registering, contracting, dealings and for some other activities.
3.Political influence.
4.Socio-cultural imbalances.
5.No ability to take risks.
6.No proper skills.
7.Not satisfying the customers needs.
8.Different mind sets of people and no co-ordination between them.
9.Not using sophisticated technology.
10.Not having enough funds.
Even though india is a vast country and having large amount of labour and resources and best economic reforms were taken place , but India is still lacking behind the business sector because of lack of managing skills , infrastructure facilities and so on such as
ReplyDelete1) lack of labour skills
2)lack of advanced technology
3)proper utilisiation of resources
4)lack of infrastructure facilities such as ( electricity,transport,internet connection,water)
5)improper production techinques,managerial skills
6)uncertain tax regime makes it tough to do business in India.
7)Outdated labour laws, and presence of too many political labor and trade union.
8)High corruption and inadequate environmental safety norms could affect sustainability.
9)investments are less india compared to other developed countries
10)provides less subsidies and loans facilities from the government to small scale industries.
11)some drawbacks from industrial policies.
Hurdles for doing business in India
ReplyDelete1)Government interference
2)lack of planning
3)lack of strategy
4)inadequate Use Of Technology and infrastructure in an organisation
5)lack of communication
6)hierarchy in an organisation
7)inefficient employees :- most of the companies are having these problem. when the company is efficient in technology but employees are not willing to work on it then problem arise
8)Competition in market :- as we know big fishes eats the small fishes in the ocean similarly in our current market, even though the small companies doing well multi national companies do not allow small companies to survive in the market. whether it tries to merge the company or its try to dominate the company
9)lack of innovative ideas
10)lack of computational skills
HURDLES OF DOING BUSINESS IN INDIA
ReplyDeleteIn a recently-published WB report, India is ranked 132nd, in terms of ‘ease of doing business' and a disheartening 166th, in terms of ‘starting up new businesses'.
It's quite apparent that it's a lot more difficult to start a new business in India than it is to remain engaged in doing an existing one. I propose to identify some of the behavioural and policy issues, which we need to address in such an environment, so that a fast-growing market can be a profitable one too.
Some of the hurdles are
GOVERNANCE FRAMEWORK
State laws and incentives are structured to attract investments which local leadership see as critical to driving economic growth, and are also dependent on electoral constituencies of ruling parties.
POLICY ENVIRONMENT
Very few markets continue to offer the opportunity of scale to drive interest from policymakers at a Government-to-Government level. This, in a sense, forces the Government to ensure moderation in policy level interventions, and limits the risk of any potentially-destabilising policy dispensation.
DEALING WITH CONSTRUCTION PERMITS
Obtaining construction permits is also difficult and there may be chances of disapproval
GETTING CREDIT
Getting credit for the business is also difficult.
POLLUTION CONTROL BOARD
In establishing a business pollution control board plays a major role.It's difficult to obtain permission from pollution control board because of its strict rules.
According to me, Starting up of Business in INDIA have large scope and it is some what easier when compared to past. This Is mainly because of the support giving by the government. But, we can see several hurdles to carry on the business further. This shows that it is easy to start a business but not to run it.
ReplyDeleteTo Support my statement I want to add an statistical figure from the world bank report which was released in july 2017. In that it stated that "out of 180 countries who participated in the survey, INDIA stood on 130th place." This shows who we are lagging behind in doing business in our country
Now, after understanding that, Running a business is more difficult than starting a business, I want to share few point from my side which I considered as the main hurdles for doing business in INDIA, As follows-----
1)TAX SYSTEM
In our country, TAX burden can be said as one of the primary hurdle in doing business, because it is the main thing which cut shorts the income/Profits of the business. When government Is reforming the tax systems from time to time, it will be difficult for the business to comply with them. So the Indian companies or businessmen and many Foreign companies sometimes find it difficult to start a business in our country because of this.
2) LACK OF BUSINESS LEADERS
When MNC's want to enter our country, they need the diversified workplace which strengthen their business and to have competitive advantage. Even though INDIA is having diversified population, there are no business leaders with global mind set to mange this diversified work force.
3) LEGAL ISSUES
If any thing went wrong in your business, either from your side or from consumer or from society side, and if you wan to go to court to resolve the issue then it will take many years to resolve the issues. this will leads to loss of interest In doing business or to be associated with any business. and this will have an impact on others who want to start business In our country.
4) COMPETETION
INDIAN market is an open market for all, so there will be N number of businesses which are similar to yours. So it is very difficult to face the competition by updating with the market knowledge and to implement new strategies at all times. So, many businesses in INDIA are shut out because they are unable to face the competition in this huge market.
So, now I wan to conclude by saying that the government initiative and support to starting a business is very effective and appreciable but I WISH THAT GOVERNMENT SHOULD EXTEND THE SAME KIND OF SUPPORT TO THE BUSINESSES TO RUN IN OUR COUNTRY WITHOUT ANY HURDLES.
Hurdles for doing business in India
ReplyDeleteEven though India has advantages like more working age group , vast area for operations, government support etc.But they are many hurdles for doing business India like....
1.Culture of people:-
culture plays an important role in doing business.And India is land of multi culture people so it is difficult for an organization to analyze all. And culture influences the people in the country.
for example:- axe perfume advertisements are banned because as it is affecting the culture of people.
2.Availability Of Capital sources:-The availability of capital is very difficult in India. The business can secure capital either through public offerings or financial institutions or own capital and there will be less support from the government in providing loans to business at lower rate of interest.
3.Too many rules& regulations:- There are too many rules & regulations from the of business to be setup and to the time of liquidation o business.
for example:- if company x want to secure capital through IPO it can proceed of business doing only when it receives of minimum subscription towards shares issued.
4.Absence of proper supporting industries:- A business can not survive alone it requires support of proper transport facilities ,supply electricity ,It industry,financial institutions etc..
for example:-if business had established in remote area it requires support of proper transport facilities and It for operations.
5.political factors:- due to having elections throught country at different time period it is difficult for government to look after the business development of nation.
6.Failure in Implementation of policies:- Even though government is making policies in development of business but is becoming in terms of implementation of policies.
7.Technology:- India is incapable of upgrading the technology according to the global needs.so it will be difficult for a company to import foreign technology as it involves high cost.
8.Tax structures:- India have complex tax structure when compared to other nations.
9.Competition:- India is having a tough competition with countries like china in attracting the FDI into the country.
10.Providing less support to Indian business organizations:- Even though government had came with concept of make in India but is providing less support to local business industries when we compared with benefits given to the MNC companies.
11.High market fluctuations:- India is facing high market fluctuations sometimes it is seeing high profits and some times it seeing low profits there is no stability in the market conditions.
Ranks given by world bank for various factors in doing business in India:-http://www.doingbusiness.org/data/exploreeconomies/india#protecting-minority-investors
*****THANK YOU*****
1. Capital: In India loans are not easily given without appropriate security. Making people to believe in us before the business starts is really a difficult task. Managing the resources is even big challenge. When the available money is not managed properly it is the step for failure.
ReplyDelete2. Innovation: The business does not stay in market only with the new business idea but organisation need to make more innovations and satisfy the increasing needs of the people day by day. The efficiency and growth of the business is measured in terms of the satisfaction of the customers. Business need to hold on their customers and expand itself which can only be done by being updated with the product.
3. In India people does not easily accept a new brand for a product. It takes time for a brand to reach people.
4. Lack of skills to manage people in the business.
5. Promotion: It is costly for a small business to buy a slot in a media.
6. People who has ideas lack in money and people who has money lack in ideas. There should be a common platform to share each others resources.
7. Lack of government support: Not all the businesses get the support from government. it is the duty of the government to provide good infrastructure to the people. The rules and regulations on the businesses makes them discouraged.
8.Increasing costs
There are lots of hurdles in starting business in india
ReplyDeletekinds of visible hurdles:
• Too many proceedings for startup
• heavy tax burdens
• huge competetion
• time taking for giving permits due to lack of all e-procedurals
• lack of proper accountable authorities at all stages
• lack of infrastructure and opportunities compared to other countries
kinds of invisible hurdles:
corrruption
political interferences by making only some people to do startups
unfair competetion from existing firms i.e,making startups not to sustain in the market even
they are running in losses
Startups- Though startups are in trend these days, it is actually difficult to establish one. Government is the single largest enabler for entrepreneur ecosystem and government's ease of doing business is vital for the success of a startup. But large sum of money is needed to start a business and government's excessive laws and regulations for infrastructure, construction and electricity permits are rather unsettling and discouraging.
ReplyDeleteHiring: India needs large no.of skilled workers. its is difficult for a startup to attract skilled workers because they prefer reputed and stable company to work where job security is guaranteed.
Competition in the market: To survive, a startup should be able differ and be better from the rest. The biggest competitor for startups are well established reputed companies that have grip over market shares. Such reputed companies are following M&A strategy to occupy most of the market shares and be in the lead.
Policy environment: The policies in India lack clarity. Even if a MNCs enters into the Indian market, they soon leave because they are unable to cope up with uncertain policies and government framework i.e. a company should go through the regulations of both central and state government.
Protection for investors and enforcing contracts:
INDIA 2016 WEALTH REPORT stated that "India ranks as one of the worst countries in the world for the ability to enforce a contract, taking an average of 1,420 days." It also stated that India is often cited as a difficult place for overseas investors to do business due to lack of transparency in several parts of the economy and cost of starting a business is high.
Culture: India is a diversified nation and rich in cultures. But it is a hurdle for foreign investors since its difficult for them to adapt to local cultures.
Resolving insolvency: It is said that in India it takes up to 4.3 years to resolve insolvency far longer than the south asian and OECD(The Organisation for Economic Co-operation and Development ) average which can slow down business relations due to the laborious court system.
http://www.thehindubusinessline.com/opinion/challenges-of-doing-business-in-india/article2681474.ece
http://economictimes.indiatimes.com/articleshow/45272839.cmsutm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
http://www.business-standard.com/article/pti-stories/india-home-to-2-36-000-millionaires-to-touch-5-54-000-by-2025-116071200649_1.html?fromNewsdog=1
The ease of doing business in India is influenced by many factors.
ReplyDelete1)Getting approvals from the government for starting a business is a long procedure.
In case of common people, it is more difficult. If there is a political background , it is very easy to get permissions.
2)Production cost is high when compared to china and some other countries.
3)Tax system is complex.
4) Fear of taking risk would stop an individual from starting a business.
5)sanction of Loans
In My point of view
ReplyDeleteOur Indian Govt. has simplified the norms in starting a business in the country. It means that the no. of steps required to start a business are reduced, the time taken to acquire permissions regarding buildings, electricity, required certificates is also reduced.
Provided all these benefits there are few barriers in doing a business that i consider,
* First thing is that getting or raising funds for operating business.
* Tax regime has changed so there could be un-certainty, like we read in news paper article
Titan has faced loss due to change in tax structure, It also said that it would stand by its
dealer in bearing the losses.
* In this competitive business world every company has to differentiate its products and
services from other competitors, businesses must try to bring in innovation and adopt new
technologies, which is possible only by investing more money in Research and
Development. Unfortunately only big firms can afford to do that. Startups in the initial stage
may not have enough resources.
* Business who are doing good enough may not sustain in the market for long time. It has to
adopt the changes in the technology, trend etc.
For example, Consider Nokia a leader in mobile market 8 to 10 years ago, couldn't sustain as
it thought that Innovation in technology i.e., a new OS version ANDROID from google has
won over the Nokia's simple OS.
* We also need efficient managers who can see the growth of the company as growth of the
Economy.
Hurdles for doing business in india
ReplyDeleteIndia is a vast country it is not only easy doing business but also challenging we must come up
with new ideas to do start business
1. Poor infrastructure: India being an underdeveloped country obviously lack various latest mechanisation, which, is a big hurdle in the path to development of the nation. Hence, with the myriad of countries coming forth by the make In India crusade, India will be given the opportunity to make use of the latest technology these countries bring along
2. Political influence: political factors play wide role in making decisions, starting the business
3. Cultural imbalances: india is a vast country and it has many religious so it is difficult task to study about the needs of different religions
4. No risk taking: in india people are afraid of taking risk so people are going in routine process by not taking risks
5. No proper loans provided by banks: banks are unable to provide loans to the new business as well as old business ex: kingfisher
6. No proper finance: as banks are not providing loans to the business properly companies are unable to get funds
7. Labour skills: there are no proper skills so they are lagging in improper labour skills
8. Merger by small companies in big companies: if a small company come up with good plans big companies are trying to acquire them
9. Biggest challenge registering your business with the government: the registration process in india takes long time that it may even takes a year
10. People are habituated with discounts and free goods so that every company cannot provide for free
11. Old production techniques, managerial skills: the people in india are still not developing their production and managerial techniques
12. Corruption: due to corruption companies are difficult to do business
13. Heavy tax imposition: there are heavy tax imposition by the government on the companies so they are unable to pay tax eg: ITC
14. no proper research and development: there is no proper research and development in the country and no companies are interested in research and development
15. heavy competition: there is heavy competition in the country so companies are unable to survive for a longer run
16. price fluctuations: there is high fluctuation in the price in the country so business people are finding difficult to do business
HURDLES OF DOING BUSINESS IN INDIA
ReplyDeleteaccording to me getting a loan to start a business its a very big challenge in India .
any business small or big needs a capital to start. If you are in India and coming from a middle class background then it is quite obvious that you will be unable to amass sufficient cash to start a small business.
hence, you have to look towards bank or other firms that can grant you some loan to start your business. Although there are thousands of banks which ready to lend you cash .
but the problem is they are unwilling to give to people who don't have strong financial background.
and secondly labour ,lack of manufacturing capability in India has been credit to red tapism and corruption, but the low productivity of labour is also a big factor.
thank you.
ReplyDeleteMost of business start with much fan-fare on over optimistic view and unrealistic expectation, but find themselves floundering with no time. Much of problem lies in the fact that they fail to foresee challenges in the road ahead.
The main hurdles of doing business in India are
1) Lack of proper business plan
2) Poor organization
3) Government takes too much time to give permission
4) Interfere of Political party
5) Poor technology
6) Loan processing
7) Information overload
8) Diversity
9) Employee reaction on Law regulation (Rules regulation)
10) Lack of capital
11) Transportation and electric problem
12) Payment of wages
Hurdles of doing business in India:-
ReplyDeleteIndia is not only fast growing country but also going through a period of unprecedented economic liberation. We have great barriers to do business in india.
*To get registered of our bsiness we have lot of complications involved.It takes almost a moonth to complete up registration.
*After establishing the business there should be a lot of attention to to pool the capital.And if it is a company either pvt or public we have to register with SEBI and should the rules kept by it.
*PAYING TAXES:-Business done in India should pay 33 types of taxes and the headline corporation tax rate stands at 30%.In addition to that we have to pay sales tax,property tax,VAT,Excise duty, Customs duty etc..
But there will be a lot of rules to import the goods rather than to export
*Resolving Insolvency:-Insolvency is when an organization, or individual, can no longer meet its financial obligations with its lender or lenders as debts become due.It takes more time to resolve insolvency in India beacuse of heavy political corruption.
Hurdles of doing business in India :
ReplyDeleteNo trust for new companies in India because people generally believe in brand and goodwill of the company. And due to lack of assistance from government.Due to heavy competition, people are likely to take risks.
HURDLES OF DOING BUSINESS IN INDIA:-
ReplyDeleteINDIA is going through a period of (never done) economic liberation, opening its vast consumer base to some of the firms. However, it is the difficult place to do business, but also challenging. we must come up with new ideas to do start business and having local help on the key to unlocking the country’s vast economic potential.
But doing business in India can still be a troublesome to achieve a goal, and having local help can really make the difference to the success of our business venture.
There are few points to startup a business:-
1. Planning of venture
2. Innovation of new ideas
3. Challenging
4. Competition
5. Skills
6. Promotion
7. Tax Burden
8.Change in business environment
BUSINESS IN INDIA
ReplyDelete*India is a huge place where various types of business entities can be established depending up on the circumstances and requirements.
*India is the world's seventh largest economy in terms of of GDP and third largest in Purchasing Power Parity (PPP) Terms.
*India is one of the fastest growing economies in the world.
*India currently has world's largest youth population.
HURDLES FOR DOING BUSINESS IN INDIA:
*Inadequate Finance:
-Non availability of bank loan to start a business due to lack of assets to use as collateral and depending on money lenders who charge high interest rates.
-After starting a business insufficient revenue to develop the business because of locking up of capital in unsold goods or non payment or late payment by clients.
*UNAWARENESS OF TECHNOLOGY AND PAYING TAX:
-Presently paying tax is the main difficulty business people are facing, i doesn't mean we should not pay tax, but procedure of paying tax has been difficult after implementing GST because some business people are uneducated and doesn't have idea about new technology but they have good business ideas,i think this will have more effect on those business people.
-Technology is going forward but people are still behind.E-billing,GST are good for a change but still corruption,black money,skipping bills continues.
*RAW MATERIAL:
-Non availability of raw material when required immediately.Limited storage space when the raw material is available.Due to this the person should compromise on the quality of material or he has to pay more for the required material.
*MARKETING:
-Failing in marketing due to poor understanding of the market trends and use of outdated technology as earning never possible without learning.
*LABOUR:
-India has more than 487 million workers but more than two thirds of indian employees report that they struggle to find workers with right skills.
-Problem of labour rises because workers are not motivated to work, and companies cannot afford to pay high salaries to the workers who have right skills.
*SOME OTHER HURDLES FOR DOING BUSINESS IN INDIA:
-Lack of clarity in deciding the type of business entity.
-Lacking in winning the trust of people.
-Health and sanitation.
-Scarcity of resources like water,electricity etc.
India is giving tough competition to other Countries in IT Sectors. It is trying to expand its scope in this Sector. We may think it is easy to start any business and run it,but NO, it is not at all. Be it small business or large, every entrepreneur face many problems to set up a business. Some major hurdles to set up a business are :
ReplyDeleteCAPITAL: Apart from popular modes like funding,loans etc.,their aren't many sources which supports their start up in the initial stage.
GOVERNMENT POLICIES AND CORRUPTION: To start a business, company has to follow huge set of rules and regulations like Memorandom of association,Articles of association etc.,which eventually takes a lot time to complete them.Other than, innumerable laws, regulations and policies, the deep rooted corruption makes it even more impossible to start business.
TEAM BUILDING: Any business cannot be just run single handadly .It takes a set of people with high qualification and minimum experience to incorporate a business.But these days many of them are lagging behind with basic knowledge and with technical skills.
LACK OF PROPER MARKETING AND PROMOTIONS
LACK OF HR SKILLS AND DECISION MAKINGS
HUGE BURDEN OF TAX.
HURDLES OF DOING BUSINESS IN INDIA:
ReplyDelete“Problems Faced by Western Firms in Indian Market"
India is on mind of everyone all over the world. India is a most promising prospects, doing business in India is top priority for many individuals and organisations and if you are going to successful in India, you have to survive in the Complex Indian environment which is frustrating and challenging at the same time.
Major Hurdles for Western Firms in Indian Market:
1) Different Cultures
2) Major Trade Hurdles
3) Infrastructure
4) Intellectual Property Rights
5) Legal Framework
6) Government Policies Effect Business Procedures
7) Competition from Domestic Firms
8) Human Resource
9) Communication
10)Public Relation
11)Marketing
12)Background
13)Understanding India
14)Indian Infrastructure for Business
15)Corruption in India
1.)CORRUPTION: Corruption tops the list here. It is rampant in every sector and at all levels. It is an unwritten rule in india particularly in government offices. Corruption has become a culture.
ReplyDelete2.)TIME: The time taken to get the licences\permissions from all the departments is inordinate even after all the policy changes.
3.)LAND: Availability of land is a problem and often very expensive.
4.)TAX SYSYTEM.
INDIA has come a long way in the EASE OF DOING BUSINESS index created by the WORLD BANK. It ranks 130 out of 190 countries and still has a long way to go.
INDIA is one of the fastest growing economies in the world. India's positive economic outlook and regulatory reforms have made it attractive market.
ReplyDeleteCHALLENGES THAT ARE FACED :-
*Foreign investment-foreign investor can now invest directly in most sectors in India without obtaining the prior approval of the Indian government. Convincing the government about the viability and usefulness of a project may prove to be a challenge for foreign investor.
*Intellectual property-India still lags behind many developed nations in its implementation and enforcement of intellectual property laws. Investors must take measures to protect their property rights from misappropriation. Care should be taken while drafting contracts that involves the assignment of copyrights.
*Delays in courts- challenge that companies face while litigating in India is the problem of delay, which sometime take several year to resolve
*Corruption- is a big hurdle when doing a business in India. Investor also face the challenge of dealing with rampant bureaucracy at various level of state and local governments
*Inadequate Infrastructure-INDIA'S weak infrastructure manifested by its poor energy supply ,unpaved roads, ineffective airports and ports are major challenge
*Governance issues-
(a) lack of transparency, accountability
(b) time required for regulatory clearances
*Registering property- requires quite a bit of legwork and can also incur substantial charges
1.India is going through a period of unknown economic liberation, opening its vast consumer base to international firms.
ReplyDelete2.It is difficult place to business and without having local help on board is the key to unlocking vast economic potential.
3.India is very large country with vast economic potential, but travel across the diverse and complicated cooperate landscape can be a seeming difficult to deal with in prospect without the right help on board.
4.not only India one of the fastest growing countries in the world, it also going through a period of unprecedented economic liberation, granting overseas investors more access to it vast and varied market than ever.
5.A large young population and a strong export sector await expanding business, with a potential world.
6.political stability and broad consensus on reforms is also big pull.
7.developed banking system and capital marketing highlight the maturity of its financial system.
8. But doing business in India can still be a trouble some to achieve the goal and having local help can really make the difference to the sources of your venture.
# STARTING BUSINESS IN INDIA HAS LONG PROCEDURES ARE INVOLVED IN IT.
@ GETTING CONSTRUCTION PERMITS ARE VERY DIFFICULT, AND FOR WE NEED TAKE LOT OF PERMISSIONS FROM OTHER DEPARTMENTS ALSO. LIKE TREE AUTHORITY, ELECTRICITY, ENVIRONMENTAL, TRAFFIC& COORDINATION DEPARTEMENT.
$ GETTING LOANS FOR NEW STARTUP'S WERE DIFFICULT.
^^ REGISTRATION OF A PROPERTY TAKES ALONG TIME.
** CULTURE ;- BUSINESS IS MORE ABOUT BUILDING RELATIONS, THE CULTURE CAN BE DIFFICULT TO ADOPT FOR OUTSIDERS.
PRINCIPLES CHALLENGES IN DOING BUSINESS IN INDIA ARE
Change in the policys, regulatory and in the laws.
Efficiency and corruption issues also.
HI,
ReplyDeleteNow-a-days there are many hurdles facing by small, medium and large businesses in our world.
I found exports in business is also one of the hurdles to transfer of goods and services from one country to the other country.
Major problems are:
LANGUAGE DIFFERENCES:
Each country has its own language. When a trader of country deals with trader of another country than because of different languages, it becomes difficult to maintain good relationship among them.
DISADVANTAGES TO AGRICULTURAL COUNTRIES:
There is a law called “increasing returns” applies in industries, while the law of “diminishing returns”
Applies in agriculture. It is clear that the quantum of importing the manufacturing goods is more than the exporting of agricultural goods.
LACK OF INFORMATION:
It is difficult to find out the details of financial position and business of any businessman sitting at distant places. Such information can be taken from banks, information agencies, chamber of commerce etc.
CUSTOM DUTY:
It mainly helps to control the export-import of country, the government uses custom duty. The main objective of tax on import is to increase the price of foreign goods so that it becomes unattractive for domestic consumers. The objective of tax is to reduce the flow of foreign goods.
MORE RISK:
Every business must take the higher risk inn foreign trade than domestic business. In foreign trade goods transported from quite long distances through the way of transportation.
Ex: By water ways , waves and climate in sea can damage the goods to a great extent or while in transit, enemy countries can also attack.
The following site describes about the hurdles to IRON ORE export on 16th july 2010 :
https://www.telegraphindia.com/1100717/jsp/business/story_12693795.jsp
THANK YOU
India is going through a period of unprecedented economic liberation, opening its vast consumer base to international firms. However, it is a notoriously difficult place to do business, and having local help on board is the key to unlocking country’s vast economic potential.
ReplyDeleteIndia is an enormous country with vast economic potential, but traversing the diverse and complicated corporate landscape can be a daunting task without the right help on board.
Now let’s see some of the main hurdles of doing business in INDIA -
1. Dealing with Registration Permits
2. Getting Resources
3. Registering Property
4. Getting Credit
5. Protecting Investors and enforcing contracts
6. Paying Taxes
7. Trading Across Borders
8. Resolving Insolvency
9. Culture
So, I can conclude that here doing business in INDIA have hurdles to look for. But this can be happen only when the government starts supporting the businesses.
It's quite obvious that it's a lot more difficult to start a new business in India than it is to remain engaged in doing an existing one. I think it is safe to propose to identify some of the behavioural and policy issues, which we need to address in such an environment, so that a fast-growing market can be a profitable one too.
ReplyDeleteEliminating one procedural hurdle in getting an electricity connection in Delhi an internal wiring inspection played a pivotal role in improving India’s overall rating in the World Bank Ease of Doing Business 2016. Now, Delhi’s power distribution companies are hoping that more key reforms would help India make a bigger impact in the next edition of the global survey.
ReplyDeleteSince April 1the companies have started an online connection approval system that has sharply pared the time taken for getting a new connection to around 15 days from nearly 120 days earlier.
Besides discoms in Delhi are working on easing the process of getting the right of way for electrical work especially from May to October when the monsoons hold up work.
hese steps according to Praveer Sinha CEO and Managing Director of Tata Power Delhi Distribution Ltd would offer an incremental push to the electricity sector rankings in next years survey and help boost India’s overall ranking in the doing business sweepstakes.
The latest edition of the report Doing Business 2016 report saw India scale up four positions in the overall country rankings aided largely by a 29 position jump under the ease of getting electricity head.
India is diversified Country , Huge Population, Immense Market Opportunities. As It take so many Things to consideration for Business to Start and Perform in long Run . So there are so many Hurdlees,Regulations for do business in India :
ReplyDelete1. To start a Business we have to go through So many Registrations,Rules, Regulations. It is the Biggest Complexities to enter any Business
2.Getting Investments is also one major issue .
3.Corruption and existence of Political Barriers, Corruption praticses among every Government Offices during various stages of evolvement of business . Every Political Party is funded by big companies or Parties having their own business links is a barrier for Commoners to Do Business.
4.Trade Regulations and Several Layers involved in trading across Boundaries.
5. Religious and cultural barriers : Different Religions and cultures across in India, its becomes Difficult to Cope up to their Expectations.
6.Most of Smes are Not having ability to Pool in Investments, Taking Risks and No Proper Awareness of markets, no structured Business practices,No proper Marketing practices,Unable to differentiate their product
7.qualityoffered is also big issue,as everyone are concentrating on their Health . Government is encouraging Demerit Goods and poor Quality goods.
8.No Ability to cope up changes happening around the globe . like Updating of technology and infrastructure
9.Regulations In FDis
10.Cost of Doing Business
11.Skill Uprgadation
12.Competition policies
13. Huge Tax Burdens are also reasons many people back of from doing business.
14.Too much intervention of Government while making strategies and Making Decisions.
According to my point of view any business which need a growth in market need to survive on three main features to get ride of all the hudles to handle i.e., Quality should be high, Quantity should be maximum and price should be resonable to get inti the market.
ReplyDeleteMany of the Business are face a problem which is duplications of product which indirectly effects the business a lot.
But to run in long term what ever may be the product it has to focus mainly on Quality,Quantity and price which helps to over come many hurdles like Duplication of products
Alternative products in the market
Customer satisfaction
In a recently-published WB report, India is ranked 132nd, in terms of ‘ease of doing business' and a disheartening 166th, in terms of ‘starting up new businesses'.
ReplyDeleteIt's quite apparent that it's a lot more difficult to start a new business in India than it is to remain engaged in doing an existing one. I propose to identify some of the behavioural and policy issues, which we need to address in such an environment, so that a fast-growing market can be a profitable one too.
The gaps in the rankings essentially means that having navigated the regulatory environment to overcome the start-up challenges, the organisation is relatively better-equipped to manage the business going forward, as the hurdles are less, with a better ranking for “ease of doing business”. Yet, one cannot ignore the key policy and regulatory challenges that companies and organisations face in India. This gets even more amplified for new ventures.
GOVERNANCE FRAMEWORK
POLICY ENVIRONMENT
JOINT VENTURES
1) Lack of managerial knowledge or skill .
ReplyDelete2) No proper articulation of business idea.
3) Not knowing the market potential.
4)Not knowing the government policies.
5) Customer needs are not meet or misinterpretation of market needs.
The era has changed now their are many startup in India. Main problem with startup are lack of business knowledge or modal, couldn't carry forward interest in business for long period. The key problem is startups assume to get more profits in a short span of time and neglect the future benefits.
India is going through a period of unprecedented economic liberation, opening its vast consumer base to international firms. However, it is a notoriously difficult place to do business, and having local help on board is the key to unlocking the country’s vast economic potential.
ReplyDeletePolitical stability and broad consensus on reforms is also a big pull for expanding companies, and the well developed banking system and vibrant capital market highlight the maturity of its financial system. But doing business in India can still be a troublesome endeavour, and having local help can really make the difference to the success of your venture.
1.Starting a Business
2.Dealing with Construction Permits
3.Getting Electricity
4.Registering Property
5.Getting Credit
6.Protecting Investors and enforcing contracts
7.Paying Taxes
8.Trading Across Borders
As per existing laws, it is not possible to run any business 24X7 in India — businesses need to shut down at least once a week and most of them need to close at certain stipulated hours. “But this idea is capable of dramatically changing things. Whether it’s restaurants or garment industries or gas stations, once such businesses begin working in shifts, they will offer vastly more job and business opportunities for everyone,” Seetharam said.
ReplyDeleteAccording to the ambassador, the measure is not being implemented through any national law in parliament, “which has certain difficulties at the moment”, but by creating a model for each of the 29 states in India to implement as they wish. “If one state starts implementing them straight away, the benefits will be there for everyone to see and that will attract other states to do the same. That is the model that will work in India, and such reforms are on track. The industrial set up, the government and the people are constantly thinking of innovating ideas and making it easier to do business in India,” he said.
#Poor market research:- you may have a brilliant idea, but without a proper market research backing ,your dream may flounder. Before investing do a market research;to find your target customer or your existing competition
ReplyDelete#Lack of proper business plan:-no new business have ever grew without a detailed business plan_ (a)focus the mission and mission of business(b)know how to run d business
#Bad pricing :-Most common problem of doing a new business is that they offer lower prices to beat the competition .It's of no use to compete with the existing business by cutting down the price ;it's only going to eat up profits
#Poor organization:- relates to process of business,set up, choosing a good location, licenses to run etc they all sum up to how you have managed your business and organized your priorities
#Governance framework:- the challenge that most companies face is the unique architecture of the Indian governance which is badly shown between central and state structures
#Policy environment:-not all companies are able to cope with the uncertainty and want of clarity of the policy
These are few hurdles for doing business in India
Starting a new business in India is like cracking a small nutshell which actually is hard. Here are my article based observations over the issue.
ReplyDeleteThe challenges faced by startups:
Customer acquisition
Proper Warehousing
Ineffective R&D
Raising Funds
Skimpy Infra Structure
Dynamic work force
Fluctuating tax rates in India
Payment options
Constant reinvention
And the foremost problem that a new start-up normally faces problems with inefficient branding and advertising. India is a huge diversified market where a product or service has to approach each person in a different way. It is all about the market research and feedback from the public end which drives marketing. It is not the innovation in the product it the ideology of marketing that appeals the customer. So in brief, new businesses face major issues in marketing that may lead to the company's fall down.
Ref:
Journal Paper-(A Study on Challenges Faced By
Startups in Indian Logistics Sector
Manikkandan. R1 & Dr. P. Karthikeyan2)
Webpage-(http://techstory.in/e-commerce-challenges-india/)
i think hurdle for business is
ReplyDelete-makes a good plan.
-prepare alternatives.
-pick up the best plan and implement.
-create one objective for business.
-mission and vision for business.
-describe the company
-management team i.e plan for the people.
-develop the strategies.
-segmentation
expansion of budget
forecasting
financial analysis
follow up the plans and strategies.
The following are the some of main hurdles that every business in india will come across,they are
ReplyDelete1.political influence:every business in india is get connected to a political party,the power holding political party directly supports the business only if it has been get advantage of it if not vice versa.This was the main hurdle that every business in india is facing.
2.Right platform:-some of the business individual come up with the innovative ideas but they find lack of right platform to present there ideas/product.But now a days the government has taken an immensive platforms to present there ideas. for eg.programms like start up india, t-hub etc.
3.lack of skilled employees:-now a days most of the companies were taking care of there own recruitment programs to develop the skills that which are required for there organisations.Because of the lack of quality educations in india were are heading across the unskilled employees,which leads indian economy down fall.
4.unstability market:-Basically indian market changes from time to time as it depends upon the tastes of the consumer,changes inpower in the political party,fluctuations in the stock market etc.
5.Rule framework:-Rules and regulations that are framed by the government in india is not up to the mark in encouraging the new startups which helps these companies in growing up the indian economy.Lot of amendments were involved in setting up of an business which make the proprietor in stopping up of his foundation.
6.Tax regime:-This is also one of the main hurdle in doing business in india.There are some huge tax weights that makes the organizer to take a step back.implementation of huge taxes on the company will effects the company growth.
India is an enormous country with the huge potential, but go across the the diverse and complicated corporate landscape can be a unsettling task without the right help on the board.
ReplyDeletePolitical stability and broad consensus on reference is also a big pull for the expansion of the companies.
In , India doing business with the help of of local authority ,representatives and distributors can really make a difference to the success of the business.
SOME OF THE FACTORS:
# Lack of the resources
#Rules and regulations
#Lack of skills and communication channels.
#Fluctutations in the market
#Corrupted govt administration departments
#Lack of skilled labours
#High tax rates.
SSI's (Small scale industries) suffer the most when starting a business in India.
ReplyDeleteA few of them are,
1. Lack of capital investment support from bankers
2. Unskilled labor and inadequate management
3. Delayed sanction of permissions
4. Increased government interference in the form of inspections, record verification, etc.
5. Various labor laws
india is a place doing of ease of business .Modi has not yet initiated many policy changes to improve the business climate in India, although he has assured investors that a red carpet will replace red tape. India is currently ranked 134th in the World Bank’s Ease of Doing Business list.Almost a month after the new policy was announced, the government amended some of the labor laws. The changes pertain to the system of inspection of companies, known as the Inspector Raj. Under the new system, inspectors will no longer be able to visit companies of their choice and stay there for as long as they want. A computerized database system will decide who goes where. There is also a time limit for filing reports. An online Shram Suvidha portal has been unveiled for employers to submit one compliance report for 16 labor laws. “These facilities are what I call minimum government, maximum governance,” Modi said at the launch of the campaign.Poor infrastructure, crony capitalism and corruption have likely done more to dissuade investment than labor laws. unskilled labor Lack of proper business plan:-no new business have ever grew without a detailed business plan_(a)focus the mission and mission of business(b)know how to run d business
ReplyDeleteBad pricing :-Most common problem of doing a new business is that they offer lower prices to beat the competition .It's of no use to compete with the existing business by cutting down the price.it's only going to eat up profits all these factors reflects hurdles in doing business
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