These changes may not solve every ill, but will help profits return to historically normal levels, increase productivity and real wages and bring about the needed competition revolution to restore public faith in the market economy.

Entrepreneurship can be encouraged by reducing the infructuous Regulatory and other Governmental requirements and controls over new startups for at least 5 years, or till they reach a total revenue level of Rs. 10 Crores, or profit levels of Rs. One Crore, whichever is earlier, by which time they should be stable enough to carry the burden of more rigorous implementation of Rules and Regulations. Till then let their customers be their regulators by choosing to patronize them or not. After all, small enterprises have direct relations with their customers, and it is only as they grow larger that such direct contact becomes rarer, and hence, more regulation would be required to enable distant customers to trust the quality. To avoid multiple counting, in trading and repairing enterprises the value of purchases of goods or spares for resale must be deducted from the calculation of revenues, even as the taxes as applicable on the commission or services are collected.

A nation-wide On-Line Digital Marketing Platform, with access to every business and with the capability to reflect the rating given to the business by its customers, will help make the market more equitable to even the small enterprises.

The scope for reduction in official regulatory procedures can be estimated from:

1. The average time taken to set up a new Business in India is 29 days as compared to 2 days in Singapore and in Hongkong.
2. The time taken to close a Firm on insolvency is more than 4.3 years in India as against 0.8 years in Singapore and in Hong Kong, though the recent Bankruptcy Act is reducing the time somewhat, yet a lot more needs to be done to make it quicker.
3. The number of Departments and Authorities (earlier about 42, since reduced to about 17 ) that have the power to permit, inspect, hassle and shut down even micro, mini and small industries and enterprises is indicative of the difficulty of starting and growing an enterprise or business in India.
4. The Laws that are cumbersome and even difficult to really comply with and made with the intention to be able to find fault with and so extract money from the Businessmen.

Pages: 1 2 3 4 5 6 7 8 9