Challenges Doing Business in India Essay Example for Free

Ch everyenges Doing championship in India EssayTrade barriers are created to encourage domestic players by making it more unmanageable for foreign firms to compete. Traditionally, India has had some(prenominal) types of trade hurdles for foreign exporters, such as, Import Quotas, Subsidies, Trade Samples and Tariff/Duty. The virtually critical barrier to trade is tariffs or the tax imposed on imports. High tariffs in some(prenominal) sectors continue to bar foreign businesses from increased market access.Red-tapism and CorruptionTraditionally, Indian bureaucracy has been mired in red tape which proved to be a frustrating experience for foreign investors. These include restrain access to Government offices, cumbersome and multitude paperwork, lack of coordination between various departments processing the documentation, long hold period for approvals, and above all ambiguous rules. However, with the economic reforms of early 1990s, the level of bureaucratic hurdles which t he MNCs had to overcome, piecemeal reduced making it easier to do business. Corruption is anformer(a) big hurdle when doing business in India. Areas interchangeable electricity supply, judiciary (particularly lower courts), Police, land administration are counted in the most corrupt category. Since all these are essential in building up a business, corruption proves to be a major(ip) hurdle for starting business in India.Inadequate InfrastructureIt has long been felt that roads and communion in India need substantial investment in order to make them world class. Problems with the countrys education and military force situation are also counted amongst the toughest obstacles for doing business. Today, there is an increased private participation in ports, roads and other key sectors. Infrastructure development has emerged as a niche market for foreign investors in India with several states looking to build world class infrastructure. The problem area is the absence of a clear-cut form _or_ system of government framework, which has hampered private investment in the infrastructure sector.