Friends
"Covid19" has proved actually "disaster 20" for the whole world. It started from China and spread across the Globe. Yesterday there was a News that there is no patient in Wuhan, China which was the origin of Corona Virus. Many nations are blaming China for this pandemic and trying to take action in their own way. China will never accept this but it has definitely invited ire of many developed countries. Now people feel that China has virtually freed itself from Covid19 and others are still facing the heat of this pandemic. Lakhs of people have perished and there is no end in near future. It may increase substantially.
So, the anger of various nations is justified to some extent. The repercussion of this anger is decision of shifting certain industries from China to other countries which are suitable and viable locations. The decision by some companies originally from Japan and South Korea may be further followed by various other Covid19 sufferers. Options to these shifting can be many Asian countries providing similar or better work environment at cheaper cost. Generally an industrialist weigh the option on the basis of - a) Ease of doing business; b) Infrastructure; c) Environment; d) Tax structure; e) Stability in government policies; and f) political safety among other factors.
India, meets most of the above required criteria but still there are few crucial factors which need to be improved to attract these companies.
1. Eased of doing Business: This is the most crucial factor for a business which depends on legal structure, government approvals & procedures, level of corruption, tax authority attitude etc.
In my view we need to improve this a lot because in our legal system the recovery of money is time consuming and the decisions take too long time. IBC 2016 has helped in improving the global rating in ease of doing business but this still need to be improved. Infact there are rumour of relaxation in the Code to help the borrowers. If this is given the new investors will afraid of their recoveries in the current legal system. Also the taxation policies should be long term without retrospective effect.
2. Environment : This is also another factor which is crucial for business to select the country for shifting the base. Important ingredient of this is political environment. If we can assure of the cordial atmosphere amongst various communities without fear or favour, it would be a good attraction for the investors.
We are a democratic country with stable political setup, it is good time to attract the industries willing to shift form China resulting into huge employment and economic growth . Our country is well positioned to get success in this with some minor improvements.
CP
"Covid19" has proved actually "disaster 20" for the whole world. It started from China and spread across the Globe. Yesterday there was a News that there is no patient in Wuhan, China which was the origin of Corona Virus. Many nations are blaming China for this pandemic and trying to take action in their own way. China will never accept this but it has definitely invited ire of many developed countries. Now people feel that China has virtually freed itself from Covid19 and others are still facing the heat of this pandemic. Lakhs of people have perished and there is no end in near future. It may increase substantially.
So, the anger of various nations is justified to some extent. The repercussion of this anger is decision of shifting certain industries from China to other countries which are suitable and viable locations. The decision by some companies originally from Japan and South Korea may be further followed by various other Covid19 sufferers. Options to these shifting can be many Asian countries providing similar or better work environment at cheaper cost. Generally an industrialist weigh the option on the basis of - a) Ease of doing business; b) Infrastructure; c) Environment; d) Tax structure; e) Stability in government policies; and f) political safety among other factors.
India, meets most of the above required criteria but still there are few crucial factors which need to be improved to attract these companies.
1. Eased of doing Business: This is the most crucial factor for a business which depends on legal structure, government approvals & procedures, level of corruption, tax authority attitude etc.
In my view we need to improve this a lot because in our legal system the recovery of money is time consuming and the decisions take too long time. IBC 2016 has helped in improving the global rating in ease of doing business but this still need to be improved. Infact there are rumour of relaxation in the Code to help the borrowers. If this is given the new investors will afraid of their recoveries in the current legal system. Also the taxation policies should be long term without retrospective effect.
2. Environment : This is also another factor which is crucial for business to select the country for shifting the base. Important ingredient of this is political environment. If we can assure of the cordial atmosphere amongst various communities without fear or favour, it would be a good attraction for the investors.
We are a democratic country with stable political setup, it is good time to attract the industries willing to shift form China resulting into huge employment and economic growth . Our country is well positioned to get success in this with some minor improvements.
CP
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