India’s Growth Is Threatened By Business 'Roadblocks' Of Bureaucracy Says John Kerry, We Should Be Worried
India’s economy will only be able to maintain its impressive growth if its bureaucracy ceases to be “an expert in setting up roadblocks”, US Secretary of State John Kerry said on Wednesday at IIT-Delhi.
The Secretary was addressing a gathering of students and teachers and private sector professionals at IIT. He also said that red tape and lack of transparency in the system continues to deter entrepreneurs and foreign investors in the country. And yet India is now the world’s fastest-growing major economy.
“Even though we are witnessing impressive gains in India’s economic growth, there is still a real question as to whether we are doing so quickly enough,” said Kerry. He further said, “To meet that goal, your entrepreneurs… urgently need the freedom to pursue new ideas, the ability to start up new businesses without a lot of red tape, and access to infrastructure that makes it easier to translate fresh concepts into successful companies.”
He mentioned that the business climate in India must improve to create jobs for the 13 million people who enter the labour market every year.
“You have to have sensible regulations and anybody’s bureaucracy has to become more streamlined and effective — a partner in making decisions, not an expert in setting up roadblocks,” he said. The comments came at a time when the government is making a pitch to attract investors by promoting the “ease of doing business” in India.
“To meet that goal, your entrepreneurs… urgently need the freedom to pursue new ideas, the ability to start up new businesses without a lot of red tape, and access to infrastructure that makes it easier to translate fresh concepts into successful companies,” he said.
Narendra Modi had promised to make India a good place to do business, but still it ranks 130th in a global league table compiled by the World Bank for ease of doing business.
Corruption, heavy bureaucracy and tax regime are some of the major reasons that entrepreneurs are not being able to set up a good business in the country.
To attain the position of a developed country, India has to do away with all these. Now, the country is facing criticism by the US secretary, this is quite a setback for us that now someone is showing the truth by pointing their fingers. The government should make flexible norms to set up business and encourage young entrepreneurs.