14.11.15

FDI and business in India

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There should be 3 tracts for ease of doing business in India:

Foreign investment

NRI investment

Domestic investment

The best governments in the world can't suddenly make the ease of doing business in India number 1, displacing Singapore......its just politically and administratively insurmountable.

The solution then is to set up SEZ, which foreign investors are happy about with their own laws and regulations following the China model. A special SEZ for Japan, a special SEZ for the UK, a special SEZ for Germany, France, USA, South Korea and so forth.

India is a complicated country administratively, and the only sure way to bypass the quirks of cosmopolitanism and center vs state, economic mafia's, police corruption, party politics, caste politics, rural development politics.....is to reinforce the SEZ that have existed in India since the 1950'S.

Having said that India is not Malaysia (PPP GDP $500 billion)....OR Singapore (PPP GDP $300 billion)(India $7500 billion).  India doesn't have to tilt awkwardly to attract foreign investment in the same manner these two small ASEAN countries have.

Ultimately the decisive factor will be DOMESTIC investment mobilized and directed by the central government.........$100 trillion over the next 35 years, of which a mere $1--2 trillion maybe foreign FDI ..2015--2050.

Holistic Development in India is not about selling out the country to attract a few FDI paisa which in many cases is very mobile.

That means laser like focus on DEVELOPMENT, and the mechanism whereby Indians in India trust the country, the government and ease of doing business to want to invest in the country with government direction and aid.

That means no more kala sala chamar chamcha politics about fundamental non issues.

I mean, the Israeli directed Delhi Police, aren't going to sniff around low caste Hindu homes to find out who's eating beef to get some headlines and set the political tone of the new RSS government.

"Is that mutton biriyani...or beef?............We better check.....house to house. Lock down the whole area. We will be visiting the area around dinner time. We can taste the food for free. Why haven't you cooked any dhal...yes tarka dahl with alloo. No dhal! You bastards must be Pakistani!"

Big universal issues like the above are sure to fuel India's DEVELOPMENT with foreign FDI money only.......pouring in from Japan, South Korea, China, Germany because they WILL UNDERSTAND all this bizarre circus.

YES WE ARE WITH YOU.

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India up 12 spots in 'Ease of doing business' report; Singapore tops

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By Times of India

India now ranks 130 out of 189 countries in the ease of doing business, moving up 12 places from last year, according to a World Bank report. Singapore remains the easiest place to do business, while developing countries stepped up their pace of business-friendly reforms in the past year.

There were barely any changes in the report's top 10, according to adjusted data using this year's criteria for both the 2015 and 2016 rankings.

New Zealand remained in the number-two position, followed by Denmark (3), South Korea (4), Hong Kong (5), Britain (6) and the United States (7). Sweden moved up a notch to number eight, switching places with Norway. Finland kept its 10th place.

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The World Bank's annual "Doing Business" report, now in its 13th year, looks at the regulatory environment for small and medium-sized companies to see how it hampers or helps them conduct business, from starting up and paying taxes to registering property and trading across borders.

"A modern economy cannot function without regulation and, at the same time, it can be brought to a standstill through poor and cumbersome regulation," said Kaushik Basu, World Bank chief economist.

"The challenge of development is to tread this narrow path by identifying regulations that are good and necessary, and shunning ones that thwart creativity and hamper the functioning of small and medium enterprises."

Significant improvement for India

"A forward movement of 12 spots in the ease of doing business by an economy of the size of India is a 'remarkable achievement," Basu was quoted as saying by PTI.

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"For any big economy, a rank improvement of 12 is a remarkable achievement. Going from 142 in the world to 130, as India has done, is very good sign. It gives a good signal about the way things are moving in India,"

China is ranked 84 and Pakistan is at 138th place. Pakistan in fact has slipped 10 spots from 128 last year while China has moved six spots in a year from 90 since the last report.

The World Bank said India, which has a global ranking of 130, implemented two reforms during the past year.

For example, in starting a business, India eliminated the requirements for a paid-in minimum capital and a certificate to commence business operations, significantly streamlining the process for starting a business.

"What is significant about India is that they are in the middle of what appears to be a very, very ambitious process of reforms affecting a broad range of areas captured by the Doing Business indicators," Lopez Claros, Director of the Global Indicators Group World Bank, said during a conference call.

"My expectation, therefore, is that if this process continues, if it is sustained, and the authorities show the degree of determination which has been in evidence in the last year, then we could see substantial improvements in coming year," he said.

Observing that the potential to see kind of a rapid economic growth in India is very high, Claros said it has very favourable demographics, and to the extent that some of the bottlenecks that the Doing Business data identified in India are removed, the potential benefits could be quite large.

"And India being India, that is a large economy. This could have also international repercussions in terms of the impact on the global economy," he said.