Business
Burden of compliance
Excessive paperwork makes small businesses unproductive
Indian small businesses are not as productive as their counterparts in other countries such as Japan, Germany and USA. Messy government compliance is the reason.
Business Standard columnist Shyam Ponappa wrote, “This is the burden of compliance, the essential but unglamorous, oft-overlooked processes related to following regulations, and filing the requisite reports to various authorities. This activity happens through the year, every year. Consider some aspects of this to appreciate how much of a drag it is on growth, and why it deserves much more attention for efficiency, productivity, and living standards.”
The amount of compliance increases with size and geography. Even small businesses have to figure out compliances at local, state, and national levels, in areas relating to economic, environmental, and public interest matters. Economic Survey highlights the problems of over-regulation and absence of ease in compliance, resulting in India’s poor performance because of delays, rent-seeking, complexity, and regulations of poor quality.
Though, India ranks 63 out of 133 in ease of doing business, it doesn’t help businesses. India is a IT power, yet it has not simplified and digitised the numerous compliances.
Read more: Economic survey 2021 Link
