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Business Hitches Blocking Indian Economic Growth Author : CA A. K. Jain  -Chapter Headings-
* Preamble
* Government
Initiatives
* Corporate
Failures in India
B. Indian
Business : * Conclusion Preamble India, with its vast population and diverse resources, holds immense potential for economic growth. However, this potential often encounters hurdles due to various business difficulties plaguing the country's entrepreneurial landscape. From bureaucratic red tape to infrastructure challenges, these obstacles hinder the smooth development of the Indian economy. In this article, we'll explore some of the key business difficulties faced by India and propose solutions to overcome them.  Composition of Business Difficulties A. Bureaucratic Red Tape : One of the major impediments to business growth in India is the bureaucratic red tape. Cumbersome regulations, lengthy approval processes, and complex tax structures often discourage entrepreneurs from starting or expanding their businesses. This bureaucratic maze not only stifles innovation but also increases the cost of doing business. In India, this has often resulted in inefficiency, stunted economic growth, and frustration among citizens and businesses.
Characteristics
of Bureaucratic Red Tape in India :
Red tape in India has historically hindered the country’s economic progress and governance. However, recent government initiatives aimed at simplifying procedures, digitizing services, and enhancing transparency are helping to reduce these bureaucratic hurdles. To further combat red tape, a continued focus on regulatory reform, accountability, and the use of technology is essential. B. Access to Finance : Securing finance is a critical challenge for businesses across sectors in India, especially for small and medium enterprises (SMEs) and new entrepreneurs. The problem is multi-faceted, involving issues related to accessibility, affordability, and the complexity of the financial ecosystem. This often leads to business failures, particularly among start-ups and SMEs, which are more vulnerable due to their limited financial resources and lack of collateral.
A few of the
pressing challenges are discussed below : 2. High Cost of Capital : Interest rates on loans for SMEs are often higher due to perceived risks, increasing the cost of capital and affecting profitability. New entrepreneurs without a proven track record are often charged higher interest rates or denied credit altogether. 3. Complex Procedures : Lengthy and bureaucratic loan application processes deter many small businesses and start-ups from seeking formal finance. Compliance with regulatory requirements, including extensive documentation, can be overwhelming, especially for first-time entrepreneurs. 4. Lack of Financial Literacy ; Many small business owners and new entrepreneurs lack financial literacy, making it difficult for them to navigate the financial system, assess loan products, or manage finances effectively. 5. Inadequate Government Support : Despite various government schemes, the actual disbursement of funds is often marred by delays, complex eligibility criteria, and inadequate outreach to rural and semi-urban areas.
The difficulty in organizing finance is a significant barrier to business success in India, particularly for small businesses and new entrepreneurs. Despite government initiatives, the challenges of accessibility, high costs, and complex processes persist. Addressing these issues requires a multi-pronged approach, including strengthening alternative financing options, enhancing existing government schemes, improving financial literacy, and reducing the cost of capital. C. Infrastructure Deficiencies : Infrastructure is a critical enabler for economic growth, business development, and industrial expansion. In India, infrastructure deficiencies pose significant challenges for businesses across all sectors, including small, medium, and large enterprises. Poor infrastructure can lead to increased operational costs, reduced efficiency, and ultimately, business failures, particularly for new entrepreneurs. Key Infrastructure Challenges are discussed below. 1. Transportation and Logistics : Poor road quality, traffic congestion, and inadequate connectivity between rural and urban areas delay the movement of goods and increase logistics costs. Overcrowded and outdated railway infrastructure leads to delays in freight transport, affecting supply chain efficiency. Limited capacity and slow clearance processes at ports increase shipping times and costs, especially for exporters and importers. 2. Power Supply : Frequent power outages and fluctuations disrupt production processes, increasing operational costs due to the need for backup power sources. High electricity tariffs for industrial use burden businesses, particularly in energy-intensive industries like manufacturing. 3. Telecommunications and Digital Infrastructure : Poor internet connectivity, especially in rural and semi-urban areas, hampers business operations especially for those relying on digital platforms. Limited access to high-speed internet and digital tools reduces competitiveness, particularly for SMEs and start-ups. 4. Water Supply and Sanitation : Inadequate water supply affects industries that rely heavily on water, such as textiles, food processing, and chemicals. Inadequate sanitation facilities in industrial areas affect worker health, reducing productivity and increasing absenteeism. 5. Industrial Infrastructure : Lack of well-developed industrial parks and special economic zones (SEZs) with adequate facilities discourages investment and growth in certain regions. Insufficient and poorly maintained warehouses lead to higher storage costs and product wastage.
Infrastructure deficiencies in India pose significant challenges to businesses across all sectors. While the government has initiated several projects to address these gaps, the slow pace of implementation, regional disparities, and inadequate infrastructure in key areas continue to hinder business growth and success. Addressing these challenges through accelerated infrastructure development, improved digital connectivity, and strategic investments in underdeveloped regions is crucial for creating a more conducive business environment in India. D. Skill Shortages & Mismatch : Skill shortages are a significant challenge for businesses across all sectors in India, affecting small, medium, and large enterprises alike. The lack of adequately skilled workers hampers productivity, innovation, and growth, leading to increased operational costs and, in some cases, business failure. This issue is particularly acute for new entrepreneurs who often struggle to find the right talent to execute their business strategies effectively. The key Challenges are discussed below. 1. Skill Mismatch : Educational institutions in India often do not equip students with the practical skills required by the industry, leading to a gap between academic qualifications and job requirements. The slow pace of curriculum updates means that many graduates are trained in outdated technologies and methodologies, making them less valuable to modern businesses. 2. Limited Access to Skilled Labour : Businesses in rural and semi-urban areas face more significant challenges in accessing skilled labour compared to those in metropolitan areas, leading to higher operational costs and lower productivity. Skilled workers tend to migrate to urban centres in search of better opportunities, leaving a skill vacuum in less developed areas. 3. High Employee Turnover : High attrition rates, especially in industries like IT and manufacturing, lead to a constant need for retraining and up skilling, increasing costs for businesses.The trend of job hopping for better salaries further exacerbates the problem of skill shortages, particularly for SMEs that cannot match the compensation offered by larger companies. 4. Inadequate Focus on Vocational Training : The emphasis on formal education over vocational training means that many potential workers are not equipped with the practical skills needed in industries like manufacturing, construction, and services. The number of quality vocational training institutes is insufficient to meet the demand for skilled labour, particularly in emerging industries.
Government Initiatives A. Ease of Doing Business Reforms : The Government of India has undertaken numerous reforms aimed at improving the ease of doing business across the country. These reforms are designed to simplify regulatory processes, reduce bureaucratic hurdles, and enhance the overall business environment, thereby supporting entrepreneurs and businesses of all sizes—small, medium, and large. The key Ease of Doing Business reforms are discussed here. 1. Simplification of Regulatory Processes : Goods and Services Tax (GST): Introduced in 2017, GST replaced multiple indirect taxes with a single tax structure, reducing the tax compliance burden on businesses. Insolvency and Bankruptcy Code (IBC) implemented in 2016, the IBC streamlines the resolution of insolvency cases, providing a time-bound process for the recovery of dues by creditors. As part of labour Law reforms, the government has consolidated 29 central labour laws into four codes (wages, industrial relations, social security, and occupational safety) to simplify compliance and reduce litigation. 2. Digital Initiatives : Digital India Campaign promotes the adoption of digital technologies across various sectors, enabling easier access to government services, including registrations, licenses, and tax filings. Online Single Window System is launched to provide a one-stop platform for obtaining all necessary business licenses and permits, reducing the time and effort required for starting a business. Corporate Affairs Ministry's has launched MCA21 Portal to help businessman to comply with corporate law requirements online, reducing paperwork and enhancing transparency. 3. Infrastructure Development : The government has invested heavily in infrastructure projects like the Bharatmala Pariyojana (roads) and Sagarmala (ports) to improve logistics, reducing transportation costs for businesses. Development of industrial corridors like the Delhi-Mumbai Industrial Corridor (DMIC) will provide world-class infrastructure to support manufacturing and trade. 4. Trade Facilitation : The introduction of the Customs EDI (Electronic Data Interchange) system has streamlined customs processes, reducing clearance times for imports and exports. Trade Infrastructure for Export Scheme is launched to upgrade export infrastructure, reduce transaction costs, and enhance the competitiveness of Indian exports.
The Government of India’s Ease of Doing Business reforms have significantly improved the business environment, benefiting enterprises across various sectors. By simplifying regulatory processes, improving infrastructure, and promoting digital initiatives, the government has reduced barriers to entry and operational complexities for businesses. However, continued focus on regulatory streamlining, infrastructure development, and skill enhancement is necessary to maintain and further improve the ease of doing business in India. To address regulatory uncertainty, the government should adopt a stable and predictable policy framework, with clear guidelines and transparent decision-making processes. Engaging stakeholders through consultations and seeking feedback on proposed regulations can help ensure that policies are well-informed and balanced. Moreover, regulatory bodies should focus on efficient enforcement and compliance rather than imposing excessive bureaucratic hurdles.
B.
Digitalization of Processes : The Government of India has implemented
several digital initiatives to foster a conducive business environment across
all sectors, including small, medium, and large enterprises. These initiatives
aim to streamline operations, enhance transparency, improve service delivery,
and facilitate easier access to government services, thereby reducing the cost
and complexity of doing business. a. Digital India Campaign : Launched in 2015, the Digital India campaign aims to transform India into a digitally empowered society and knowledge economy. The initiative focuses on providing digital infrastructure, digital literacy, and digital services to all citizens and businesses. This includes development of broadband highways, universal access to mobile connectivity, public internet access, digital Governance ( e-Governance) reforms, including online access to government services and e-Kranti (electronic delivery of services), promoting digital literacy and access to digital resources, and Unified Payments Interface system that facilitates instant money transfers between bank accounts via mobile devices. It has revolutionized digital payments in India, making transactions easier for businesses. The key benefits of digital campaign include direct digital payments, lower transaction fees, wider Customer Reach including those in remote areas. b. Government e-Marketplace (GeM) : GeM is an online platform launched by the Government of India to facilitate procurement of goods and services by government departments, organizations, and PSUs. It is a one-stop-shop for businesses to supply products and services to the government. This ensures a fair and transparent procurement process, simplified registration and bidding process for businesses. This also provides access to government buyers, increasing business opportunities for SMEs. c. Goods and Services Tax Network (GSTN) : GSTN is the IT backbone of the Goods and Services Tax (GST) system, facilitating the filing of returns, tax payments, and refunds. It has unified India’s indirect tax system, benefiting businesses by simplifying compliance. d. e-Way Bill System : The e-Way Bill system is an electronic documentation system for the movement of goods across India. It is integrated with the GST system and is mandatory for inter-state and intra-state goods transportation. This facilitates seamless transportation of goods, reducing delays at checkpoints and helps businesses manage logistics more effectively. This also ensures compliance with GST laws, reducing the risk of penalties.
2. Suggestions to Enhance Digital Initiatives : Promote digital literacy across all demographics, especially in rural and semi-urban areas, to ensure widespread adoption of digital tools. Enhance security protocols and awareness to build trust in digital systems, particularly in financial transactions. Invest in high-speed internet access in remote areas to ensure that businesses across the country can benefit from digital initiatives. Conduct targeted awareness campaigns for SMEs and start-ups to educate them on the benefits of digital initiatives and how to leverage them effectively. Ensure seamless integration of various digital platforms (e.g., GSTN, GeM, UPI) to provide businesses with a unified and user-friendly experience. The digital initiatives undertaken by the Government of India have significantly transformed the business landscape, making it easier for entrepreneurs and businesses of all sizes to operate, scale, and compete in the market. By leveraging digital tools, businesses can improve efficiency, reduce costs, and access new opportunities. Continued focus on expanding digital infrastructure, enhancing cyber security, and promoting digital literacy will be essential to sustaining and building on these gains. C. Infrastructure Development : Infrastructure development is crucial for fostering business growth and economic development. Recognizing this, the Government of India has implemented several initiatives aimed at improving the country’s infrastructure, benefiting businesses across small, medium, and large sectors. These initiatives focus on transportation, energy, logistics, and urban development, creating an environment conducive to business operations.
1. Key Infrastructure Development Initiatives : a. Bharatmala Pariyojana : The Bharatmala Pariyojana is a flagship highway development project aimed at improving road connectivity across India. It focuses on optimizing the efficiency of the movement of goods and passengers, thereby reducing logistics costs for businesses. The project includes development of economic corridors, border and international connectivity roads, and coastal and port connectivity roads, construction of feeder and inter-corridor roads to enhance connectivity to remote and rural areas. The project has reduced travel time and transportation costs for businesses and improved access to markets for small and medium enterprises (SMEs) in remote areas. b. Sagarmala Programme : The Sagarmala Programme aims to modernize India’s ports and develop coastal infrastructure to support port-led development. It focuses on enhancing port connectivity, port modernization, and the development of coastal communities. The key components of programme include port modernization, new port development, port connectivity enhancement through the development of road and rail links, promotion of coastal shipping and inland waterways to reduce logistics costs. Project has substantially enhanced trade efficiency and reduced logistics costs for exporters and importers and improved opportunities for businesses in coastal areas, especially in the shipping and logistics sectors. c. Dedicated Freight Corridors : The Dedicated Freight Corridors project is aimed at improving the efficiency of freight transportation by building high-speed, high-capacity railway corridors. The Eastern and Western DFCs are the most prominent. The key components of programme include construction of two major freight corridors, the Eastern DFC (Ludhiana to Dankuni) and the Western DFC (Jawaharlal Nehru Port to Dadri) and development of multi-modal logistics parks along these corridors. Project has substantially enhanced speed and reliability of transportation of goods across states, reduced transportation costs, benefiting manufacturing and heavy industries. d. Industrial Corridors : The Government of India has initiated the development of several industrial corridors to promote industrialization and urbanization. These corridors aim to create world-class infrastructure that attracts investment and boosts manufacturing. The key components of programme include development of industrial zones with integrated infrastructure, including roads, power, and water supply. Key corridors include the Delhi-Mumbai Industrial Corridor (DMIC), Bengaluru-Mumbai Economic Corridor (BMEC), and Amritsar-Kolkata Industrial Corridor (AKIC). e. Smart Cities Mission : The Smart Cities Mission aims to promote sustainable and inclusive cities that provide core infrastructure, a clean and sustainable environment, and a good quality of life to their citizens. This mission focuses on urban infrastructure, including transportation, water, energy, and IT connectivity. The key components of programme include development of smart solutions for efficient urban management, including intelligent traffic management and smart grids, promotion of public-private partnerships (PPPs) in urban infrastructure projects. Project has substantially enhanced infrastructure facilities to attract businesses and investments in smart cities. Also improved living standards and work environments for employees.
Investing in infrastructure development should be a top priority for the Indian government. This includes upgrading transportation networks, expanding power generation capacity, and bridging the digital divide through investments in broadband connectivity and IT infrastructure. Public-private partnerships (PPPs) can play a crucial role in financing and executing infrastructure projects, leveraging the expertise and resources of both the government and the private sector. The infrastructure development initiatives undertaken by the Government of India have significantly improved the business environment, making it easier for businesses of all sizes to operate efficiently. By reducing logistics costs, enhancing market access, and providing modern facilities, these initiatives have helped businesses grow and compete globally. Continued focus on overcoming challenges and further enhancing infrastructure will be crucial for sustaining economic growth and attracting investment in India. D. Financial Support and Incentives : The Government of India has launched several financial support and incentive schemes to promote entrepreneurship, support businesses, and stimulate economic growth across various sectors. These initiatives target small, medium, and large enterprises, ensuring that they have access to necessary funds, tax benefits, and other incentives required for sustainable development and expansion. Key Financial Support and Incentive Schemes are as follows.
1. Pradhan Mantri MUDRA Yojana (PMMY) : The Pradhan Mantri MUDRA Yojana (PMMY) is designed to provide financial support to micro and small enterprises in the non-corporate and non-farm sectors. The scheme offers loans up to Rs.10 lakhs, categorized under Shishu (up to Rs.50,000), Kishor (Rs.50,000 to Rs.5 lakhs), and Tarun (Rs.5 lakhs to Rs.10 lakhs).This is good for Micro and Small Enterprises as it offers easy access to collateral-free loans at low-interest rates and flexible repayment options. 2. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) : The CGTMSE scheme provides collateral-free credit to micro and small enterprises. The scheme covers up to 85% of the default amount in case of loan default, reducing the risk for lenders and improving credit availability for small businesses. This is good for Micro and Small Enterprises (MSEs) as it also offers collateral-free loans up to Rs.2 crores. The scheme has increased access to formal credit for small businesses and reduced their dependency on informal sources of finance. 3. Production Linked Incentive (PLI) Scheme : The PLI Scheme was launched to boost domestic manufacturing by offering financial incentives based on incremental production. It covers sectors like electronics, pharmaceuticals, textiles, automobiles, and more. This is good for medium and Large Enterprises in select sectors. The scheme provides financial incentives for increasing production also encourages import substitution and export promotion. This has attracted large investments in manufacturing increased production capacity and global competitiveness of Indian companies. 4. Start-up India Initiative : The Start-up India Initiative aims to promote innovation and entrepreneurship by providing financial support, tax benefits, and an enabling environment for start-ups. The scheme offers a range of benefits, including tax exemptions, credit support, and mentorship. This facilitates the growth of the start-up ecosystem in India and encourages innovation and the creation of new business models.
The financial support and incentive schemes launched by the Government of India have played a vital role in supporting businesses across all sectors. These initiatives have improved access to credit, reduced operational costs, and encouraged innovation and investment. Continued focus on addressing challenges and expanding the reach of these schemes will be crucial for sustaining business growth and economic development in India. To enhance access to finance, the government and financial institutions should prioritize initiatives aimed at supporting SMEs and startups. This includes setting up specialized lending programs, offering low-interest loans, and providing financial literacy programs to educate entrepreneurs about alternative financing options such as venture capital, angel investing, and crowd funding. Moreover, fostering a conducive environment for fintech innovation can further facilitate access to finance for underserved segments of the population. E. Skill Development Programs : Skill development is a crucial factor in enhancing the productivity and competitiveness of businesses across sectors. Recognizing the importance of a skilled workforce, the Government of India has introduced several skill development programs and schemes aimed at equipping individuals with the necessary skills and competencies required in various industries. These initiatives target workers in small, medium, and large enterprises, helping them to meet industry demands, adopt new technologies, and remain competitive in a rapidly changing market.These are the some of the prominent schemes. 1. Pradhan Mantri Kaushal Vikas Yojana (PMKVY) : PMKVY is the flagship scheme under the Ministry of Skill Development and Entrepreneurship (MSDE) that aims to provide industry-relevant skills to youth. It offers short-term training, recognition of prior learning (RPL), and special projects to meet the needs of various sectors. 2. National Apprenticeship Promotion Scheme (NAPS) : NAPS was launched to promote apprenticeship training by providing financial incentives to employers who engage apprentices. The scheme aims to bridge the gap between theoretical knowledge and practical skills. 3. Skills Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP) : SANKALP is a World Bank-supported program aimed at improving the effectiveness of skill development programs across the country. It focuses on decentralization, quality improvement, and enhanced access to training. 4. Udaan Scheme : Udaan is a special industry initiative for the state of Jammu & Kashmir, designed to provide training and employment opportunities to the youth. The scheme partners with corporate to provide market-aligned skills and jobs. 5. Atal Innovation Mission (AIM) : Though primarily focused on innovation, AIM also promotes skill development in emerging technologies through initiatives like Atal Tinkering Labs (ATL) and Atal Incubation Centers (AICs). These initiatives provide practical exposure and hands-on training to students and entrepreneurs.
To bridge the
skill gap, there needs to be a concerted effort to revamp the education system
and align it with the evolving needs of the economy. Investing in vocational
training programs, apprenticeships, and lifelong learning initiatives can equip
workers with the skills required for the jobs of the future. Collaboration
between industry, academia, and government is essential to design curriculum and
training programs that are relevant and responsive to market demands. F. Policy Reforms and Clarity : The Government of India has introduced several policy reforms to enhance the ease of doing business, foster innovation, and stimulate growth across sectors. These reforms are designed to help businesses-small, medium, and large-overcome operational challenges, streamline processes, and become more competitive both domestically and globally. Key Policy Reforms initiated by government are summarised below. 1. Goods and Services Tax (GST) : GST was introduced in 2017 as a comprehensive, multi-stage, destination-based tax that replaced multiple indirect taxes. This reform aimed to create a unified tax structure across India, reducing the tax burden on businesses. 2. Insolvency and Bankruptcy Code (IBC) : The IBC, introduced in 2016, consolidates and amends laws relating to insolvency and bankruptcy. It provides a time-bound process for resolving insolvency, thereby improving the ease of exit for businesses. 3. Start-up India Initiative : Launched in 2016, this initiative aims to build a strong ecosystem for nurturing innovation and startups in India. It provides benefits such as tax exemptions, faster patent processing, and easier access to funding. 4. Make in India : Make in India, launched in 2014, focuses on encouraging manufacturing in India by providing a favourable environment, attracting foreign investment, and fostering innovation. 5. Production Linked Incentive (PLI) Scheme : Introduced in 2020, the PLI scheme aims to boost domestic manufacturing and reduce import dependence by offering incentives to companies based on incremental sales from products manufactured in India.
The policy reforms introduced by the Government of India have played a significant role in improving the business environment, fostering innovation, and boosting economic growth across sectors. By addressing the challenges and further enhancing these reforms, the government can continue to support the growth and competitiveness of businesses in India, ensuring long-term economic prosperity. G. Investment Promotion : India has been actively promoting foreign and domestic investment through initiatives such as Make in India and Invest India. These initiatives aim to create a conducive environment for investment by addressing regulatory bottlenecks, providing investment facilitation services, and promoting key sectors such as manufacturing, infrastructure, and technology. These schemes are designed to provide incentives, ease of doing business, and infrastructure support to businesses of all sizes—small, medium, and large. Some of the key Investment Promotion Schemes are listed below. 1. Make in India : Launched in 2014, Make in India is a flagship initiative aimed at encouraging companies to manufacture their products in India and incentivize dedicated investments in manufacturing. 2. Start-up India : Start-up India, launched in 2016, promotes entrepreneurship and encourages startups by offering financial assistance, tax exemptions, and ease of regulatory compliance. 3. Production Linked Incentive (PLI) Scheme : Introduced in 2020, the PLI scheme aims to enhance India's manufacturing capabilities and exports by providing financial incentives based on incremental sales. 4. National Infrastructure Pipeline (NIP) : The NIP, launched in 2019, is an ambitious program aimed at improving infrastructure across the country by enabling investment in projects related to energy, transport, and urban development. 5. Foreign Direct Investment (FDI) Policy Reforms : The government has continuously liberalized FDI policies to attract foreign investments across various sectors, offering 100% FDI in many industries under the automatic route.
The Government of India's investment promotion schemes have played a pivotal role in boosting domestic and foreign investments across various sectors. These initiatives have not only enhanced the ease of doing business but have also contributed to job creation, innovation, and economic growth. By addressing the existing challenges and further refining these schemes, India can continue to position itself as a leading global investment destination. These initiatives, coupled with ongoing reforms and investments, demonstrate the Indian government's commitment to improving the business environment and addressing challenges faced by businesses. While progress has been made, continued efforts are essential to sustain momentum and further enhance the ease of doing business in India. Corporate Failures in India A few examples of corporate Failure are mentioned herein below. The reasons could be financial issues, technically issues or marketing issues etc. But most of these casualties could have been avoided, if the government policies were proactive towards business. When a company collapses, it’s a national loss in terms of financial resources, taxes and employment. Funding institutions and regulatory bodies can definitely extend a helping hand to an industry in crisis. The government should have analysed these business failures and their consequences. In most cases timely support by the government could have saved these companies from perishing. If all these companies would not have failed, imagine the industrial growth of India. I appreciate the role of Chinese and Singapore government towards industry, where all industries are monitored and if there is any likely failure the government intervenes with proactive attitude.
A. Multinational Companies : 1. Retail : Companies like Metro AG (Germany), Carrefour (France), and Walmart (US) faced difficulties in the competitive Indian retail market, eBay (US), Groupon (USA ). 2. Automobile : Ford (US), General Motors (US) and Harley-Davidson (US) struggled to gain a foothold in the cost-sensitive Indian auto market. 3. Manufacturing : Companies from diverse sectors like Holcim (Switzerland) in building materials, Daiichi Sankyo (Japan) – Pharmaceuticals , Henkel (Germany) - Consumer goods, GSK (GlaxoSmithKline): Healthcare , Banking: Royal Bank of Scotland (UK) in banking, and Citibank (US) have also scaled back or exited India , PepsiCo (US) 4. Telecommunications : Vodafone (UK) , Docomo (Japan), Nokia ( Finland ) BlackBerry ( Canada ) These are just a few examples, and the landscape of companies operating in India is constantly changing. It's important to note that while some MNCs have left, many others continue to operate successfully in India. The Indian market remains attractive due to its large and growing population. B. Indian Business : This is a list of few domestic companies who wound up business in spite of extremely successful beginning. Governance cannot pass on the blame saying that these are the private companies and they have no role to play. Any private entrepreneurial failure is definite loss to the government finances. Timely monitoring by funding institutions, regulatory bodies and other government machinery could have saved many of these gigantic business institutions. 1. Air Lines : Kingfisher Airlines, Jet Airways , Air Asiatic, Air Carnival ,Air Costa, Air Dravida, Air India Cargo, Air India Regional, Air Services of India, Air India International, Air Mantra, Air Odisha, Air Pegasus, Ambica Airlines, Air Sahara, Archana Airways, Aryan Cargo Express, Chhattisgarh Air Link, CityLink Airways, Cosmos Airways, Crescent Air Cargo, Damania Airways, Darbhanga Aviation, Deccan 360, Deccan Airways, Dove Airlines, Easy Air, Elbee Airlines, East-West Airlines, Go First, Goa Way Aviation, Gujarat Airways, Handley Page Indo- Burmese Transport, Himalayan Aviation, Himalayan Air Transport & Survey, Hinduja Cargo Services, Huns Air, Indian National Airways, Indian Overseas Airlines, Indian State Air Service, Indian Transcontinental Airlines, Indus Air, Irrawaddy Flotilla & Airways, Jagson Airlines, Jamair, Jet Airways, Jet Konnect, JetLite, Jupiter Airways, Kairali Airlines, Kalinga Airlines, Kingfisher Airlines, Kingfisher Red, MDLR Airlines, Mistri Airways, ModiLuft, NEPC Airlines, Orient Airways, Paramount Airways, Pushpaka Airlines, Quikjet Airlines, Raj Air, Safari Airways, Sahara Airlines, Simplifly Deccan, Supreme Airlines, Transportes Aéreos da Índia Portuguesa, TruJet, Vayudoot, VIF Airways, Vijay Airlines. 2. Government Companies : Several public sector government companies in India have closed their businesses since 1947 due to various reasons. Here is a list of some notable ones: Bharat Yantra Nigam Limited, Bengal & Assam Company Limited, Burn & Company Limited, Central Inland Water Transport Corporation Limited, Great Indian Peninsula Railway, Hindustan Antibiotics Limited, Indian Telephone Industries Limited, Jessop & Company Limited, Madras State Transport Corporation, National Textile Corporation Limited, Rajasthan State Mines and Minerals Limited, State Trading Corporation of India, Videsh Sanchar Nigam Limited, HMT Limited, Bharat Wagon and Engineering, Hindustan Photo Films, Tungabhadra Steel Products, Bharat Gold Mines, Bird Jute & Exports Limited. Please note that this is not an exhaustive list, and there might be other smaller or less well-known public sector companies that have closed their businesses over the years. 3. Sugar : Rajshree Sugars & Chemicals Limited, National Sugar Manufacturing Company Limited, Simbhaoli Sugar Mills Ltd, Dewan Sugar Mills Limited, Daurala Sugar Works, Mawana Sugars Limited. These are just a few examples, and there might be other sugar mills companies across India that have closed. 4. Automobile : Here is a list of some large automobile companies in India that have closed business. Premier Automobiles Limited, Standard Motor Products, Hindustan Motors Limited, Daewoo Motors India, Sipani Automobiles. 5. Diversified Business : Shaw Wallace & Company, Globe Theatres India,DCM Group India,Scindia Steam Navigation Company India, Amar Dye Chem Limited India, Videocon Industries Limited Sahara India Pariwar, Satyam Computer Services. These are just a few examples, and there are many other Indian companies that have closed over the years. These are just a few examples, but there have been various instances of businesses facing challenges and failing in the Indian market due to various reasons including mismanagement, financial irregularities, and market dynamics but the ultimate responsibility lies with monitoring and regulatory bodies for any failure. Conclusion Overcoming the business difficulties outlined above is essential for unleashing India's full economic potential and fostering inclusive growth. By addressing bureaucratic red tape, enhancing access to finance, investing in infrastructure, reducing regulatory uncertainty, and bridging skill shortages, India can create a conducive environment for businesses to thrive. It's imperative for policymakers, business leaders, and other stakeholders to work together towards building a more competitive and resilient economy that benefits all segments of society. Finally I only wish readers to imagine if our industrial failure was 50% less, Indian economy would have been on the top of the world. To address this challenge, the Indian government must streamline regulatory processes and simplify compliance requirements. Implementing a single-window clearance system for licenses and permits can significantly reduce bureaucratic hurdles. Additionally, digitalizing government services and introducing online portals for regulatory approvals can expedite processes and improve transparency.
**********Disclaimer: The information and statistics presented in this article have been compiled from various sources deemed reliable. However, readers are advised to independently verify the accuracy and relevance of the data before making any decisions or taking action based on the information provided herein. The author and publisher do not assume any responsibility or liability for any consequences resulting from reliance on the information presented in this article. 2024/08/21 |
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