The outlook for doing business in India is grand, and although the positives far outweigh the negatives, concerns can develop into problems for your Indian business ventures. Many of these concerns are merely growing pains, which will lessen as India continues to settle into its role as an international economic powerhouse.
In this section, I explain two of the major hindrances to doing business in India and offer help on how to make these problems turn into pebbles, not potholes, on your business road to India.
Although much progress has been made in reducing business-related bureacracy, some processes are still slow and several are the subject of political debate. Many paths are clear, but yours may still involve a trail of paperwork!
Don’t be discouraged by the bureacracy. Although certain hoops, such as obtaining electricity connections, environmental clearances, and land approvals can be difficult to jump through, the red tape is less of a hindrance in India than in other parts of the world. See Chapter 8 for tips on how to deal with Indian bureaucracy.
According to a recent study conducted by the global consultancy firm Grant Thornton International, India’s red tape is no worse than China’s and is actually much less problematic than Europe’s.
Each year, the end of February marks the announcement of the annual budget. ...