Transcript for:
Why Doing Business in India is Difficult

We call India a golden bird But this golden bird is trapped in a poverty trap. But why? We went on ground with the same question. And we talked to business owners who earn 100 rupees a day to those who earn 1 lakh rupees a day. How easy is it to do business in India? Maybe this was a mistake. India needs 20 million new jobs every year. And we are generating 5 million new jobs. India needs job creators. India needs businesses. Business sucks everything your energy, your money, your time Middle class families don't support you Business and corruption are inseparable Fear of crime. Fear of the IT department. Fear of the customs. Your burdens are like nails hammered in your body What is the real pain of a job creator? Let's understand. We talked to people. We read their tweets, DMs, and comments. And we realized that starting a business in India is not just a problem. It's a challenge like climbing Mount Everest. Storms can come at any time There may be an unseen chasm at any time. And you have to fight these pitfalls every day. But there is a way to reduce the headache of business. That way is to optimize your business processes. Reduce expenses so that profits increase And one way to do that is with the sponsor of today's video, Odoo. In the future, only those businesses will survive that will adopt technology. Odoo is an all-in -one management software. Where you can manage all the departments of your business. Managing documents in every business. Taking signatures on them. Tracking their progress is an important task. With Odoo's Sign Application, you can easily review documents. You can also sign and send them online. You can also personalize documents. Fields can be easily dragged and dropped. Is data is mandatory or not. Who has to fill in what data in the document You can decide these things You can make contracts between multiple parties. And you can also decide in which order it should be signed. And it also has real -time document tracking. To make sure all parties sign the document and get an overview. Your first app on Odoo is lifetime free for use For unlimited users. Whenever your business needs them you can also add other apps. Starting with just Rs 580, you can access all these apps As a business owner, Odoo gives you unlimited customer support and hosting. Which fulfills all your needs. You can check Odoo's Sign App with the link in our description. So do make sure to check it out. Why is it tough to do business in India? The reason is time. Let's do a comparison. If you want to start a restaurant, will it be fast in India or Singapore? Look at this table. You can see how much time it takes for different licenses in India and Singapore. It's hard to believe that it takes 2 months to get a FSSAI license. Time is money. Of course, GST registration is relatively simpler in India. Which is commendable. But it takes so much time to get a FSSAI license In Singapore, you can start a restaurant business in 1-2 months Whereas in India, it will take 6-9 months to complete all the process. Who will wait so long? They'll put up a roadside stall right? You can do anything on the roads But to start a canteen You want to serve hygienic food to people Even that has so many issues And it's not just about food Gold also has a similar problem If we send a parcel from here Just to send items from India It can take anywhere from 8-10 days We submit an excel sheet in one format They tell us this is not correct Make it in a different format Now we will hold your parcel On one hand you have compliances You have HR problems The third hand has union problems The fourth hand has payment problems The fifth hand has fraud problems In the sixth hand, you have payment delays and no relief from courts There are so many problems it seems like a joke And these problems are the birthplace of jugaad We have a vehicle problem The BMC vehicle comes every day The vehicle comes every day at 6-7 pm. It waits for 1 hour then leaves We start our stalls after an hour Why is it tough to do business in India? Reason is corruption. Have you ever got a passport made? My friend paid Rs 2,000 to get a passport made. But for police verification, the police asked for a bribe of Rs 3,000. To move a file forward, you have to grease many palms Corruption is an inseparable part of business. You have to accept it. I met someone. I won't say his name. I said, sir, you take so much money. It's not good what you're doing He said, we have to distribute it further. He said this. I heard this and I'm telling you Rules are old. Rules are complicated. Rules have been made in such a way that you don't understand. And Babus are waiting for you to make a mistake. And how they can take a bribe from you to hide your mistake. The biggest cause of corruption is the policy. The policy should also change according to the time. And the government should pay attention to it and make it change. If they change, it will be easy for people to do business. The system is such that it waits for you to make a mistake. Rather than telling you what to do. Why is it tough to do business in India? The reason is credit periods You must have seen this sign in the shops around you Credit is banned here This is not only in small shops, but also in businesses too People don't pay the money for orders or bills that they owe Not only that, bills are not paid on time. This Hindustan Times report says that 10.7 lakh crores are pending. Which big companies owe to MSME companies Even though such rules have been made that micro, small and medium enterprises. That is, MSMEs should get the payment in 45 days. Still, it is not followed practically Rule remains a rule. It is tough to do business in India because it is tough to find good staff On the one hand, there is unemployment in India. And on the other hand, there is a shortage of good employees. How is this possible? There is a huge shortage of labour On one hand, the government says that this is unemployment. I have never seen it sitting here. Look at anyone here, there will still be a requirement. This is the biggest problem of the entire manufacturing industry. We will pay money for the machine and install it. The infrastructure will be built. Who will work? Business is tough in India because there is no one to encourage. We are running as a traditional family. Where 9 to 5 job is where you are safe and secure. And your future is very safe and secure. Taking a risk in an Indian middle-class family. Your family won't be supportive unless and until they see a good result or money. Middle-class family, they don't support. They'll be like, oh, you are struggling. Oh, you are in loss. I think you should stop. It was a wrong decision. You are facing problems because of you. The pain, the struggle that you are facing day to day You know what you are facing You can't explain it to your family. No one can tell you. You can't expect anyone to understand your problems. The promising entrepreneurs. Who have good ideas, a good plan, a good team. Can't there be a support system for them? There is an SMA fund in Hong Kong. They give back half the money you spent on new business development. Easy to apply. They have a BUD fund. 7 crore rupees are allotted in the BUD Fund 7 crore rupees. You come there and do business. Grow your business. The government will give you half the money. And sir, we have got it I am a resident Indian. Still, I have a company in Hong Kong. Which is my legal subsidiary of India. And from that subsidiary Despite being a subsidiary there we have also got an SMA fund Why shouldn't there be something like this in India? This can become India's new power Electricity is needed to run every machine. But there are very few cities in the country where there is no problem of electricity If you want to develop the country, then power is key. But power companies are struggling. How will they get funds to work if people don't pay their electricity bills? Look at this data. 1 crore people in UP don't pay their electricity bills. Everyone suffered from demonetization. Except for the electricity companies. Why? Because the government said that you can pay off the electricity bill with old notes. People who didn't pay their electricity bills for years now settled all the accounts. Think about it. Despite having money, people don't pay their electricity bills. It is difficult to do business in India. Because it is expensive to do business in India In fact, when we were looking for a place for the studio, the rates of a popular co-working space were 33,000 plus GST per seat. Which is insane. As I come from a middle class family, I didn't have that much capital with me I had an investor who raised me and helped me to start a business. It's actually very tough. You need to have a good credit. And it's been two and a half years and I can say that I'm still in a survival stage right now And running a business in India is very difficult. If the family is not in the business, then it's a problem. And if the family is in the business, then it's a problem too. I have never celebrated Diwali or any big festival with my family or my dad. Because whenever it's Diwali, it's bumper business time for shops So for us, Diwali means good sales at the shop Dad comes home happy at night That's it. Our Diwali is over. Business takes away everything from you Your time, your energy. Your family time, your friends' time, your personal time. X, Y, Z. All the hobbies, all the interests have to throw them away. Whatever problems you have in life, whatever X, Y, Z challenges you have, we have to leave that outside the door You just have to come inside and keep a smiling face You have to keep your mind very calm. You have to keep it cold, like ice. India is a rich country of poor people. Don't hate me after hearing this line. This line has been said by our Union Minister Nitin Gadkari After facing so many challenges, if you set up a business and earn a little profit, there are taxes, right? Foreigners used to come to India first, they used to buy for their weddings and leave. Do you know what is happening now? Dubai is a stopover. Why? If you buy goods in India, then 15% is gold duty. But if you buy from Dubai, then you give VAT and refund it at the airport. There is no VAT or GST refund system here. And you tell me, if you come to India for marriage, then at least pay 25,000 dollars for jewelry for yourself. Pay 15% on $25,000 $3,750 more Pay more dollars because you are buying in India. And you will not get its duty back. Who will buy from us? India's middle class is being crushed under the burden of taxes Those who come under the 30% tax bracket, they work for the government for 4 months a year. And high taxes is not a problem. The problem is that what do we get in return for that tax money? Good police, good governance Good Roads Good Education These things are just a dream Let's talk about business. In Singapore, corporate tax is 17%. 9% in UAE. The rate for Indian companies in India is 25%. And 40% for foreign companies. This tax is quite high. Earlier, one accountant used to do the work. Now, I have to hire three accountants. Plus, a CA as well Suddenly, I get a notice of 2018. Or I get a notice of 2020. That this is a mistake. There is an error in the filing Remove all the files and bills of that time. Go through it. It is a very time -taking process. Notice after notice. Where did you get this from? Where did you get that from? How did this happen? There is always a challenge for a layman. He gets scared if he gets a letter. Today, if a business entrepreneur is honestly doing business and is paying taxes, then why is he scared of getting that letter? I am a businessman. Let me do business. To be really honest, doing business in India is difficult because our view of a businessman is wrong. If someone is earning money, doing legal work, making progress, generating jobs, then instead of encouraging him, we think how to pull him down. India has glorified poverty. And has made every business owner a villain. They have made such an image that someone is earning money. This means that someone is doing illegal work. India cannot get out of the poverty trap until we get out of the poverty mindset. Today, the focus in India is only on how to discourage someone. Today, a businessman is scared of growing in size Because he doesn't know which compliances will come on him. When will the income tax notice come? Fear of crime. Fear of the department. Fear of customs. This is the state of 80% of the business. Why is there an environment of FEAR? In this entire video, we talked about problems. But, in our entire journey, there was not a single person who gave up hope. If there is a clean person sitting in power From Centre to State From State to Municipal Corporation If we can clean the corruption nothing like that We should bring change at the ground level, at the educational level. And we should teach things that will grow the business. The minister of every industry has to work on the ground reality. If it is a cotton industry, how can he encourage it? We have to work on this When we have meetings with Piyushji, Sitaramanji, we see pressure on their faces. They ask the officers, when will this work be done? Give me a date. Today, they opened a facility center in SEEPZ For SEEPZ and out of SEEPZ I remember, Piyushji asked at that meeting, when will this be done? And I want a date. The head of customs who who usually delays for 6 months months, said that it should be done in 2 months. And it was opened in 3 months And governance with transparency. Officers with transparency. I am neither disappointed nor hopeless. But, I feel that one day it will come. A young generation will come. A new thought will come. It will take time. Anil Kapoor's movie came out. Nayak. Whatever Anil Kapoor could do, I would like to do it too What do you think? What are problems in doing business in India? And how can we solve it Do tell us in the comments If the Indian middle class stops chasing their children for government jobs, and encourages them to stand on their own feet If roads are built in the country, if the problem of electricity, labour and land is solved. If India's tax is not a burden. If bureaucrats stop blackmailing people and do their work honestly. Then just imagine, where the country can go from. By not focusing on all these problems, honestly, every day, every hustling businessman who earns his daily bread, we salute them. And that's the reason why I love India.