With the right information, you can set up your own enterprise or a joint venture in India very quickly. Knowledge of local and state laws and the right documentation can help streamline the process, while taking advantage of incentivized locations can help you avoid unnecessary costs. Don't be tempted to lower your standards when doing business in India. Since 1986, customers in India have been protected by a demanding Consumer Protection Act. All goods must be fit for purpose, delivered on time, and exactly as promised. Deficiencies in service, technical malfunctions, delay or cancellation of delivery, or failure to provide a service that has been paid for are all breaches of this act-and consumers can take their case to a Consumer Forum or a Consumer Court at any time up to two years after the goods or services have been delivered. The Indian government has begun to take its responsibilities toward the environment very seriously; indeed India is the first country in the world to have environmental protection measures enshrined in its constitution. Policies such as "prevention of pollution at source" are enforced by the Central Pollution Control Board, which ensures the "polluter pays" for its own cleanup. If you are thinking of building production facilities or offices for your company in India, you will need to gain an approved Environmental Impact Assessment (EIA) before any work can begin. Take careful advice- guidelines for and exemptions to EIAs change often.
Failure to comply can be extremely costly: several huge mining ventures have been delayed for years because they did not obtain the right consents. Refineries, petrochemical plants, and cement, paper, and dyeing factories need Ministry of Environment approval, and must maintain certain standards on emissions and discharges, and air, water, and soil quality. Directors of companies responsible for actions that damage the environment can be prosecuted. The signs of India's rapid growth are all around, but so too is the evidence of how poor infrastructure is constraining it. Power cuts, water shortages, airport delays, overloaded ports, and overcrowded roads are a way of life. India's inadequate infrastructure presents one of the biggest hurdles you will need to overcome in building a successful business. India's infrastructure gap is an indicator of its future potential: the government is spending more than US$400 billion on upgrading roads, ports, airports, and power and water supply, to give India four worldclass airports, a network of US-style freeways, and the power it needs to drive the economy.
Generous tax holidays are available for core infrastructure projects. But the current situation is difficult for business: demand drastically outstrips supply, so electricity is expensive and supply is unreliable. Poor transportation links continue to hamper business. Economic losses from congestion were estimated to be as high as US$6 billion in 2007. Large trucks are banned from entering some cities by day, which can add crippling delays. Ports suffer from lack of dock space and cranes, and airports from lack of warehousing. Weather conditions can worsen problems: power fails more often, traffic becomes even more congested, and goods stranded outside-due to lack of warehousing-can be ruined by rainstorms. India's services are close to breaking point, and while the laws of supply and demand suggest that the country's infrastructure gap will be filled, any organization doing business in India must-at present-make the best of the situation. Recent legislation has addressed the "leakage" (a euphemism for corruption) that surrounded large infrastructure contracts, and these projects are attracting the attention of Indian and overseas companies that can see the huge opportunities.
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