INDIAN GROWTH ADVERSELY IMPACTED BY BUSINESS ENVIRONMENT
The Indian Government initiated a very welcome movement in last 2 decades by de-licensing and opening up of the economy, liberalization and commencement of large number of infrastructure projects, roads, ports, power plants, etc. The zeal and commitment of the Government to improve the working condition of business in India has suffered a serious set back in last few years. The following important areas need an immediate attention to improve the growth prospects of the Indian economy :
- Over Regulations
The bureaucratic control and formalities have been increased very significantly in the recent past in relation to various tax laws, corporate laws and other regulations. The society need to commit itself to
complete liberation for the Indian businesses men with just and fair regulation. The compliance's need to be reviewed on a zero base by Indian economists and experts with hands on business exposure; and, the professionals must assist the government to device smooth working mechanism for all the business processes, with least reporting requirements and compliance's. Today there is a competition between various Central Government departments, State Government departments as well as by the regulators to bring more and more requirements of filing and disclosures of all business activities. This mind set needs a reversal. The business community is overburdened with such complicated compliance's and many productive man- ours are lost in complying with so many
- Tax Laws
The hunger of the government to impose more and more taxes as well as to collect higher taxes by conducting surveys, searches, raids, litigations, retrospective amendments and frequent changes in tax laws is another big dampener of business sentiments. The central government taxes have to be restricted to 6% of the GDP and State level taxes also should be restricted to maximum 4% of the GDP, so as to ensure that not more than 10% is collected as direct tax or indirect tax put together. The government can introduce incentives for growth and international development of businesses. Instead of garnering more resources through higher taxes, the government must check its expenditure by austerity and robust mechanism of controls at all levels.
- Business Environment
It is important to improve the business environment by a serious attempt to ensure lower cost of production, new innovations and researches, adequate availability of low cost electricity and power,
availability of trained & skilled manpower, better labour laws to protect current anti labor attitude and practice, free movement of goods, better infrastructure facilities including roads, ports, telecom, sewages and anti pollution treatment mechanism. In all these areas, a sincere and severe long term visionary plan needs to be implemented swiftly. The growth movement commenced under the able leadership of Mr. Narasimha Rao followed by a very big visionary leap by Shri Atal Behari Vajpayee, is needed to be brought back on track by Dr. Man Mohan Singh and his successors on an immediate and urgent basis to ensure that India is ranked among developed countries of the world and become the largest economy in the world.