The Government of India has turned “Ease of Doing business” into “Unease of Doing Business” in India. With Heave tax regime and uninvited officials constantly interrupting the process, The risk of operating a business has risen to extreme heights.
Private investments have dropped in the country. The private sector is slowly losing confidence in the country and this shows in this article published by The Wire showcasing “Private Sector Investment Plans Hit by Rising Costs, Inflation in Q3″.
Private sector investment dropped by 1.4% in Q3 of the current financial year as compared to previous quarter. Rising Inflation and operating costs have both resulted in loss of confidence from the private sector.
In the last decade, The contribution of the manufacturing sector to the GDP has declined from 25-30% to now Being in the range of 20-25%.
Many factors from Complicated Goods and Services Tax to High income tax and many “unofficial” costs make it hard for a normal domestic business to thrive in the current economic landscape unless you a VC backed Startup burning money for customer acquisition in the hopes of promising profits in the future.
Too many compliances make it hard for a regular businessman to focus on his business. Instead, He/she has to focus more in filling the pockets of these authorities officials and making sure of all the compliances.