Why is it HARD to do Business in India? | Harsh reality of Ease of Doing Business | Abhi and Niyu

Summary

India, often referred to as a 'golden bird,' faces significant challenges in fostering business growth due to bureaucratic inefficiencies, corruption, credit delays, and a lack of supportive infrastructure. This transcript highlights the struggles of business owners, from navigating complex regulations and corruption to dealing with delayed payments and lack of family support. Despite these hurdles, the spirit of entrepreneurship remains strong, with a call for reforms in policies, corruption reduction, and increased support for businesses to unlock India's potential and economic growth.

Takeaways

• 🦅 India is referred to as a golden bird but is trapped in a poverty trap.
• 💼 Starting and running a business in India is challenging, requiring significant time and effort.
• 🛠 India needs to create 20 million new jobs annually but is only generating 5 million.
• ⚖️ Business in India is burdened by corruption, bureaucratic hurdles, and outdated policies.
• 🗂 Odoo offers a solution to optimize business processes and reduce expenses.
• 🚀 Business in India is hindered by lengthy approval processes for licenses and permits.
• 🔋 Power shortages and unreliable infrastructure further complicate doing business in India.
• 🛑 High taxes and complex compliance requirements discourage business growth and investment.
• 👨‍👩‍👧‍👦 Middle-class families often do not support entrepreneurial ventures due to fear of financial instability.
• 🤝 There is a need for a supportive ecosystem for startups and small businesses to thrive.

Q & A

Why is India referred to as a 'golden bird' in the context of the video?

The term 'golden bird' is used metaphorically to describe India's potential and wealth, but the video suggests that this potential is trapped in a cycle of poverty and challenges, preventing the country from fully realizing its economic and social potential.

What is the primary challenge highlighted in the video regarding business in India?

The video highlights that starting and running a business in India is extremely challenging, akin to climbing Mount Everest, due to various obstacles such as bureaucratic red tape, corruption, and a lack of support systems.

How does the video describe the role of Odoo in business management?

Odoo is presented as an all-in-one management software that can help businesses manage all departments efficiently. It offers features like document management, online signing, and real-time tracking, which can optimize business processes and reduce expenses.

What is the significance of the time it takes to get a FSSAI license in India compared to Singapore?

The video points out that obtaining a FSSAI license in India takes significantly longer than in Singapore, illustrating the bureaucratic inefficiencies and delays that hinder business startups and growth in India.

How does corruption impact the ease of doing business in India according to the video?

Corruption is depicted as an inseparable part of doing business in India, where bribes and 'greasing palms' are often necessary to move files forward or expedite processes, adding an additional layer of complexity and cost to business operations.

What are the implications of the credit period issues mentioned in the video?

The video discusses how delayed payments and non-payment of bills by customers create financial strain on businesses, particularly MSMEs, leading to cash flow problems and hindering business growth and sustainability.

Why is finding good staff a challenge in India despite high unemployment rates?

The video suggests a mismatch between the skills of the unemployed and the requirements of businesses, indicating a need for better alignment between education, skills development, and industry needs.

How does the video characterize the middle-class family's attitude towards entrepreneurship?

The video portrays middle-class families as generally unsupportive of entrepreneurship, preferring the stability of traditional jobs and discouraging risk-taking, which can stifle innovation and business growth.

What is the impact of high taxes on the Indian middle class and businesses?

The video argues that high taxes burden the middle class and businesses, reducing disposable income and stifling business growth. It also questions the value received in return for these taxes, such as infrastructure and public services.

What solutions does the video propose to improve the business environment in India?

The video suggests solutions such as simplifying and updating policies, reducing bureaucratic corruption, improving infrastructure like roads and electricity, and encouraging a culture that supports entrepreneurship and innovation.

How does the video address the issue of bureaucracy and its impact on businesses?

The video criticizes the bureaucratic system for being outdated and complicated, creating an environment where businesses are constantly at risk of making mistakes and being exploited by officials for bribes.