{"id":51005,"date":"2019-08-07T17:29:55","date_gmt":"2019-08-07T11:59:55","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?page_id=51005"},"modified":"2019-08-07T17:30:03","modified_gmt":"2019-08-07T12:00:03","slug":"answered-what-are-various-challenges-faced-by-business-units-in-india-how-india-can-ensure-better-business-environment-in-india","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-what-are-various-challenges-faced-by-business-units-in-india-how-india-can-ensure-better-business-environment-in-india\/","title":{"rendered":"[Answered] What are various challenges faced by business units in India. How India can ensure better business environment in India?"},"content":{"rendered":"\n
Demand of the question<\/strong>
Introduction.<\/strong> Contextual Introduction.
Body. <\/strong>Challenges faced by corporate sector in India. Solution to ease business environment in India.
Conclusion. <\/strong>Way forward. <\/td><\/tr><\/tbody><\/table>\n\n\n\n

India ranked 100th in World Bank’s Doing Business Report 2018. Although India has recently made progress in ease of doing business, doing business in India is still not easy. There are many bottlenecks faced by corporate sector in India.<\/p>\n\n\n\n

Problems Faced by corporate sector\nin India:<\/strong><\/p>\n\n\n\n

  1. Regulatory Procedure and Related Delays: <\/strong>Too many regulatory\nmeasures imposed by the Government on the private sector has resulted in\nlengthy procedure and delays in getting final clearance of a new industrial\nproject. On the Government level, decision making system is poor delays\ncompletion of large investment project.<\/strong><\/li>
  2. Unnecessary\nControl: <\/strong>From the beginning, the private sector of the country is subjected to\nunnecessary Government control. Price controls imposed by the Government on\ncertain goods has resulted in disincentive to increase production. Rather\ncompetition among the rival producers can enlarge the production base and\nthereby can reduce the prices automatically. Price controls,.dual pricing etc.\nhas resulted in black marketing and hoarding of such commodities. <\/li>
  3. Inadequate\nDiversification: <\/strong>The private sector has been suffering from inadequate diversification as\nthe Government did not allow them to participate in basic, heavy and\ninfrastructural sectors like defence and railways which were earlier reserved\nfor the public sector. <\/li>
  4. Lack of Finance and Credit: <\/strong>Although the large\nscale industrial corporate units of the private sector are mobilising their\nfund from banks, development financial institutions and from the market through\nsale of their equities or debentures but the small scale units are facing acute\nproblem in raising fund for their expansion. Further increase in NPA has led to\ndecreased credit for private sector.<\/strong><\/li>
  5. Starting a business in India: <\/strong>It is not easy to\nstart a business in India. It can take between months to complete all the\nrequired procedures, with fees and add-on costs dependent on the size and type\nof business being registered.<\/strong><\/li>
  6. Poor\nimplementation of law: <\/strong>With the introduction of the Companies Act 2013, the\nlaw makers had intended to introduce a modular law to the Indian economy, but the\nstringent provisions led a setback to implementation. The increase in the\ncompliance burden has, to a great extent, curbed the incorporation of companies\nin India. <\/li>
  7. Land acquisition issue: <\/strong>Land acquisition\nremains complex, because of the difficulties in establishing legal ownership.\nThere are many litigations due to inheritance, fragmented holdings, and demands\nby sellers to be paid in cash. <\/strong><\/li>
  8. Electricity: <\/strong>The demand is\ncurrently more than supply. As the economy booms, and there is a potential for\npower outages. Power is essential for manufacturing sector and service sectors.<\/strong><\/li>
  9. Infrastructure: <\/strong>There is much focus\non infrastructural development, boosting road transport, creating dependable\npower generation, and modernising state-owned railways. An infrastructure\nstrain poses a challenge to distribution and logistics.<\/strong><\/li>
  10. Exports\nand imports challenges: <\/strong>Despite government legislation to improve\ninternational trade, there are still various hurdles to importing and exporting\ngoods. Exporters and investors face non-transparent and often unpredictable\nregulatory and tariff regimes. Several layers of bureaucracy make it\nchallenging to move goods efficiently, and companies must file a long list of\ndocuments before moving products across borders.<\/li>
  11. Skill gap in India: <\/strong>Accessing the right\nskills is a challenge. Further, employment laws in India are complex. At present,\nthere is a huge variety of laws which need to be consolidated.<\/strong><\/li><\/ol>\n\n\n\n

    How\nIndia can ensure better business environment?<\/strong><\/p>\n\n\n\n

    1. Government should\nease regulations.<\/li>
    2. Tariffs should be\nmade predictable and transparent.<\/li>
    3. Focus should be on\nreducing paper work.<\/li>
    4. Digitisation of\nbureaucracy and ease of opening and closing business should be focus.<\/li>
    5. Law reforms should\nbe initiated with aim to make labour laws and corporate laws easy and simple.<\/li>
    6. Infrastructure\ninvestment should be increased.<\/li>
    7. New sectors like\nrailways and defence should be gradually opened to private sector.<\/li>
    8. Land reforms and\ndigitisation of land should be completed to ease land acquisition.<\/li><\/ol>\n\n\n\n

      Although over year\ngovernment has initiated many reforms and schemes to support business in India\nlike Start-up India, Benami property act, etc. More is needed to reduce other\nbottlenecks to do business in India. Government should reduce hurdles and paper\nwork wrt doing business in India.<\/p>\n","protected":false},"excerpt":{"rendered":"

      Demand of the question Introduction. Contextual Introduction. Body. Challenges faced by corporate sector in India. Solution to ease business environment in India. Conclusion. Way forward. India ranked 100th in World Bank’s Doing Business Report 2018. Although India has recently made progress in ease of doing business, doing business in India is still not easy. There… Continue reading [Answered] What are various challenges faced by business units in India. How India can ensure better business environment in India?<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49132,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-51005","page","type-page","status-publish","has-post-thumbnail","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/51005","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=51005"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/51005\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49132"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=51005"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}