How to Beat the Dragon in Business

Now that the Dragon is beating a humillating retreat from the icy mountains of Galwan Valley, it is the right time for India to take stock. Not only militarily but also economically. The post-Corona world offers an unprecedented business opportunity for India to grab. If we are not fast enough, we will miss the next economic bus.

The recent series it events occurred at Line of Actual Control (LAC) in Eastern Ladakh between Indian, and FLA troops has caused huge outrage against the autocratic communist regime of China and its expansionist policies People have started boycotting Chinese products as protests spread across the country. The government also banned 39 Chinese apps with a huge user base and popularity. But can we afford to boycott without quality alternatives? We should be realistic and sincerely work upon issues and challenges faced by our industrialists, entrepreneurs and the service industry. Manufacture in China and sell it in india is the nene trend today as we had tailed to build up our eco-system for Research & Development and innovation in the country. Investing in R&D was thought to be a waste As a result, we could not develop a single indigenous app in the software industry with global brands such as apple Google Facebook, and Twitter though we have the best IT companies and brains in the country. We need to understand the challenges and try to improvise and inruuvate at the earliest.

China emerged as a manufacturing superpower in the last decades. The world did not realise how it gut enslaved by cheap and shoddy Chinese products. Unfortunately, they produce cheap itens sulted to each and every pocket Today China controls many items sold by top brands such as Apple, Sony etc. Every electronic device manufactured in the world has a part manufactured in China China's cheap labour and speedy execution of projects made it the manufacturing hub of the world.

Investing in R&D was thought to be a waste. As a result, we could not develop a single indigenous app in the software industry with global brands such as Apple, Google, Facebook, and Twitter though we have the best IT companies and brains in the country.
Post-COVID-19 the world is anti-China, thanks to the Wuhan virus. It has demonised China and its approach to human lite values, ethics and work culture. The worlit is searching for options where it can have quality prochicts competitive price and tirnely delivery. Over 300 foreign companies have decided to shutter their manufacturing plants in China and move to a safe and better place. Japan declared US$ 2.2 billion relief package for companies to shin from China.

India is well placed to address the situation and grah this opportunity. We have cheap labour compared to the rest of the world except China. Vietnam or Bangladesh. We have a better infrastructure now. We have a democratically elected Government committed for growth and welfare of the people whereas what dictatorship can lead to can be witnessed in China. No human rights no transparency, massive corruption, and dictatorial regime.

If we care to evaluate the pros and cons of the Indian business environment in an objective manner, our weaknesses and strong points as compared to China become clear. We already have a vibrant democracy, and our human right index is well above compared to China. Civil rights are enjoyed to the maximum, or we can say at times it's been abused. Censorship on the media and other communication means there is almost no transparency. The recent novel Corona pandemic is evident how China risked humanity by hiding the truth on the Corona virus. There is no reliable information on the actual number of deaths in China. Had there been a free media, thousands of liyes and huge resources could have been savest.

The aman which need to be addressed immediately
Pollictes are still not entirely business-Mendly
Corruption is rampant in the middle and lower rungs of bureaucracy
Slow decision making poor implementation and Inadequate comervurication
Absence of long-term policies ja change of government may dump polteles
Political interference in bustness-related decisions
Specialised Banks for each sector

Policies
We don't have bustriess-friendly policies which can inspire new entrepreneur and industrialist to venture in to large scale production facilities as tev business houses still control the market. They kill each opportunity for the MSME to emerge big. The intensive focus needed to mitigate the challenges faced by the MSME Industry, Draconian lanes of British era still exist in the Indian regulatory system. Environmental laws, Land acquisition and conversion of land for industrial purpose is the biggest source of corruption and major roadblock in development. Flies take months or years to clear despite capitation money being paid to officials at each Coliecturate of revenue department. Digital Mapping of land and its conversion should be done online
Over 300 foreign companies have decided to shutter their manufacturing plants in China and move to a safe and better place. Japan declared USS two 2 billion relief package for companies to shift from China. India is well placed to address the situation and grab this opportunity. We have cheap labour compared to the rest of the world except China, Vietnam or Bangladesh. We have a better infrastructure now.

Alternatively, Centre of State Governments themselves should identity land parcels in advance, purchase them from tarmers or other sellers, obtain necessary clearances, build infrastructures like roads, power and water lines and keep them ready for sale. In any case for so many business-like electronics, IT, Argo products, environment and forest clearances are unnecessary. It takes years tor approval and promoter starts losing interest on the project even hetore the project gets off the ground. This is because barik loan starts accumulating Interest on it.

South Korean steel giant POSCO wasted for so many years to set up its steel plant and has finally walked away because of such delays

Bureaucracy is the biggest hurdle in development as the decision taken at the highest level nails to get implemented at the ground. For example, in recent Corona pandemic. Government of India has decided to reduce performance security deposit up to remaining project cost Still. It has not been passed on to agencies by departments contractors are suffering severe financial crunches
In short, policies should be well thought out and must be for the long term, should not be influenced by changes in the government or ministry or officials. Polices should be such that there are no scopes for corruption or delays
Corruption
Though an autocratic regime is believed to be more corrupt. in China the corruption is limited to the top rungs of Chinese Communist Party only. Autocracy helps them in implementation of policies and projects in real-time. Fear at being severely punished works weil with such a way of governanim. Contrary to this India has seen a non-corrupt regime at the Centre in the last six years. But the mid and lower level is still the same its big madblock to pulicies and programs of the government
For example, banks are told to lend to SME, MISME sectors to support it to revive. But banks are hell-bent on not doing it. They follow the same old Line of no work is better than to be held accountable. They fear of being booked by art for any wrong landing MU bank and grammad annast undumtund that they ar also doing business, and some cases resulting in NPA doesn't necessarily mean corruption.

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They struggle to learn a new type of project or consumer demand comes to them. We have our own ILFS or NAMARD or NBFCs, but they too are mired in red tape and corruption. We should improve and upgrade the work culture of these lending institutions to make them more business-friendly. Large PSBs should have "desks" or single widow systerns for specific businesses
But the mid and lower level is still the same, its big roadblock to policies and programs of the government. Banks are told to lend to SME, MSME sectors to support it to revive. But banks are hell-bent on not doing it.

Presently our yearly imports from China are about Rs 5 lakh crores. The bulk of them comprise of filewing segments: Electrontes, Telecom equipment Organic & Inorganic chemicals, intermediates, buik drugs, agrochemicals. dyes. Textiles (including man-made fibres and yarns) Alt conditioners & Refrigeration equipment. Auternobile batteries mc
The government must approach concerned trade bodies for the above businesses to seek implementable solutions trom them to replace these imports in time-Imund manner. Mast at the iterns mentioned above are already being made in India. Some of them can be imported from ether countries for time being (Refer case of Hero Motor Cycles they cancelled their orders worth Rs 700 crore from China for auto components and planning to buy with ittle higher price from Germany but will eventually make them in India).

In the short term, our objective should he to meet domestic demands for these products. While doing this, we can address issues of quality and prices. This will enable us to compete with China globally and should focus on suppliem of first cholce" because of the anti-China environment across the world.
We can produce the best of imgineers and managers for global businesses. Time is ripe for us to harness this talent to counter this Chinese challenge
Key Takeaways
Encourage all govertimerit departments dealing in revenue environment, and pollution control to go digital and online to speed up the process, transparency, avoid harassment to industrialists
MSME sector must get cinse attention of Top decision-makers. They are the backbone of economy and employment About 50% of export earnings are from MSME sectors also employs 55% of our workforce. While political iradership has realised the importance of this sector, bureaucracy is yet to respond positively to this critical sector.
One nation one tariff for electricity. It varies from Rs 2.5-7.00 per unit
The manufacturer in confused by the time they start production with pre-existing benefits announced by the Incumbent government, the government changes and new policies come to force. They should have a protection pact for a minimum of 25 years.
-Propie should be encouraged to establish units in their own locality/ state and must be given incentives for such initiatives
Consumption of goods made incally should be encouraged. Such products are bound to be cheaper as they don't Involve storage and transportation costs
Bank lending must be done easily with kwer collateral security & rate of interest to encourage new entrepreneurs should be on top priority.
Any business decision Invoking huge capital outlay will be taken with prime consideration for the risks involved in sateguarding the capital deployed. This can be assured only with innsistent ining-term poltries, political stability, the rule of law, corruption-tree administration, efficietit funding institutions and avaliability of skilled manpower. All these areas nend to be addressed by the political leadership The beginning has already been made. China has provided us with the Impetus to move ahead quickly in all these spheres