As elsewhere in the world, political influence is very essential to start a business in India. Especially if you are planning to start a business of thousands of millions, a sort of political patronage is an absolute necessity. Not only to safeguard the interest of the company, but also to begin the process of obtaining the required sanctions, is required to maintain at the highest levels of political and administrative circles.
Indian society is plural. It is the largest democracy in the world with multiple political party system. Population, India is the second in China, with about 1200 million people. This is the largest consumer market in the world. It is a rapidly developing world. India is the third largest economy in the world and the second fastest growing economy in Asia. It has the huge potential for development with enormous power of human intellect. With all these advantages and the huge market potential, the world super entrepreneurs looking for business establishments in India. With the population of overcrowding and the millions of hard work and qualified personnel, India offers a very cheap labor for the world. Many have realized the business potential in India, began toexplore the unique investment opportunities.
Over the last couple of decades, India has opened its market to the world. It has absolutely become an open global market. Banking sector, insurance and all fields of industry and business are open to multinational investment. Of course there are many hurdles to cross. And most of all issues can be overcome and set up businesses if you have political patronage.
India has a pluralistic political system. With numerous political parties, national and state level, it is very difficult to get consensus among all parties to the start of any business. Moreover, these political parties have sponsored many factors, caste, creed and ideologies. There are political parties with ideologies centered left communists are totally against foreign direct investment. However, other parties, which are the main partners of the ruling coalition, have the right ideologies centered and open to foreign investment. In most states, political parties are mostly local governing. Political parties require the financial backing of big business establishments.
Many constituent states have realized the need for foreign investment in its state-led economic growth to the situation. Therefore, the climate has changed a lot in India. So many privileges offered to entrepreneurs to start business. With all these facilities, political patronage is still a need to start a business in India. Even after establishing the business, for proper operation of the business, political support is essential. It is mainly to solve problems related to local taxes, labor problems and many issues affecting the normal operation of enterprises.
Robert Grazian is a developer and accomplished niche website author.
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Artical source:-http://agnes8350.typepad.com/blog/2011/12/political-influence-while-starting-a-business-in-india.html
