Entrepreneurship in India - Restart the Economy to Prosper

We Indians in the last one year came to know about various steps taken by this Government to attract business, to develop socio economic relations with neighboring countries as well as the economic giants. Various initiatives are taken to make the call to entrepreneurs from all over the world. This will definitely benefit India and improve economic conditions. But are we really ready to welcome these investors to improve our economy? Yes, we have improved our image all over the world. Yes, we have changed many of our rules and regulations to make incorporations of new enterprise easy. We have also implemented all the laws to reduce red tape. But there is still a lot to improve, still a lot to look after. We are far behind in terms of pollution, safety, education, culture, etc.

The need for entrepreneurship in India is from a longer period but it took spark during 2013 when foreign capital was suddenly out of developing economy, India was amongst the worst affected economy. Due to a large number of reasons investors panicked. GDP rate was falling and the sources of public finances were withdrawing. Adding to this worse situation inflation rate reached around 10%. All these mess together created a scenario of black days for an economy.

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The population growth of our country does not require any program or Government expenses for its growth. This was the major reason for countries worse situation. Indian Government started focusing on slowing down population growth as this was the need of the hour. Any economy can only survive if it has minimum consumers but our nation have the maximum figure. New Government have already started utilizing this resource by introducing various programs like Skill India, but surely it will take time.

According to various economists “Restart” is the suggestion for India to develop. For sure this will work but it is not easy for any government of developing economy carrying deficit budget on its back to boot instantly and aim for a restart. It will be a reliable idea to take steps towards this goal and improve our foundation issue such as power food and shelter. Large number of people in India is aware of the fact where we are lacking behind and what we need to change for attaining self sufficient goal. Every year a large chunk of Indians join the workforce not only in India but also all over the world. The experts of our nation go out because they are not able to find field to work. So the most important thing Government need to focus is to give them option to stay at home and devote their knowledge for India’s development. Huge factories that create jobs in other places are rare in our country. This is again because it is so difficult to do business here.

What are the challenges in India?

India carries a basket of problem which prevents new players to enter our market. These can be summed up as bureaucracy, Corruption, Labour, Regional Sentiments, and Social Capitals. These problems if not managed properly will pull India from developing and definitely give chance to all our competitors to take advantage.

Bureaucracy: Bureaucracy tells us about the rules of government offices. We have a large number of procedures to follow to start a business. In India the purpose of rules and regulations is opposite. The view to safeguard the interest is abolished and it has created a scene of hectic task.

Corruption: The effect of corruption can be easily forecasted by the progress of private sector growth and downfall of public sector. It creates unfriendly situation for the growth of business, it is a challenge for budding entrepreneurs. With this challenge either an entrepreneur can get involved in corruption to get the task done or it can quit. In both the scenario the concerned economy losses.

Labour: In spite of huge population India lack behind for skilled labours. The Indian labour is cheap because of a comparatively low wage. But, the ability to produce by cheap labour is not satisfactory for the mangers. Managers need to keep a regular check on their labours.

Regional Sentiments: One of the most important problems to do business in India is regional sentiments. Businesses have failed as they could not control impact of local population. In our country political party of regions have also affected the smooth working of the firm. Enterprises at times donate for the local cause and invest in development to earn confidence and ensure smooth functioning. This as a result increases expense and decreases the profit of the firm.

All these issues needed to be checked and rectified as soon as possible. The solution to these issues will create business friendly environment with cheap labours and easily available land. India the developing economy would be able to match with standards of other developed countries. And then we can welcome any enterprise with pride and with great confidence.

This article has been authored by Saurabh Kumar Agarwa from IIM Kashipur

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