Global Themes

On Globalization & Venture Capital

4 lakh illegal rickshaws, 6 lakh illegal vendors and why politics matters – even to entrepreneurs

From my latest post over at Times of India:
“…Did you know that more than 80 percent of the cycle-rickshaws in Delhi are illegal (since there are only 99,000 of them allowed legally)?
Govt functionaries in Delhi extort a crore a month from the cycle-rickshaw pullers alone! This was the figure in 2006. It has probably doubled since then.
Were you aware that Delhi’s approximately 600,000 street vendors operate without the necessary license and pay up about Rs 12 million per month in bribes?

Were you aware that a law in the state of Maharashtra requires farmers to sell their sugar cane to a specified sugar mill in the district[i]?

Did you know of the law in Kerala which mandates that once a farm is registered as producing one crop, it cannot change its crop without government permission[ii]?!

Would it now surprise you to know that “India ranks among the world’s worst countries at encouraging entrepreneurs. For ease of starting a business, India is 166th out of 183 countries”

Or that it takes 7 years (yes, seven) to close a business in India and 1,420 days to enforce a contract!
You would think this is a bad joke – except it is not.

And millions of small entrepreneurs suffer from this stranglehold of regulations and permits; the vestiges of a still omnipresent (and deeply embedded) license-permit Raj.
Which brings us back to our question: What can the government do?”
Read it in full here.

November 1st, 2012 Posted by | Entrepreneurship, India | no comments