By the Way

By the way : Bureaucracy stalls investments!

no-image-avialableThe fact that India continues to rank poorly as an investment destination in the newly released 10th annual survey of petroleum sector executives around the world carried out by a prestigious non-profit global institute is probably as good a time as any for some serious self introspection. The survey identifies countries with the greatest barriers to investments in the oil and gas industry and is confined to the oil and gas executives in the upstream sector. India is placed 30th among 36 countries with “medium reserve holdings” in terms of policy perception in the global survey. Thailand, Malaysia, Vietnam, and even Pakistan, come before India. Among Asian countries included in the survey, India is in the absolute bottom. Only Bangladesh ranks below us. Among 100 countries overall, India is placed at 80. Why is the general perception on India so poor? The survey quotes one of the respondents as saying, “Getting environmental clearance can be a prolonged process. Even after getting environmental permission, there can be nasty surprises.” The fiscal terms in India are considered to be a big deterrent but it is a lower deterrent in Pakistan. Fiscal terms are seen to be as big a deterrent in China as they are in India. Then again, India’s taxation burden is seen to be considerably larger than Pakistan but China’s burden is seen as much higher. Then how does China get a higher score than India? China’s environmental licensing norms are seen to be much less cumbersome. There are also more respondents not wanting to invest in India than in China or Pakistan as a result of uncertainties in interpretation and implementation of policies. The cost of regulatory compliance too is seen to be much higher in India. Surprisingly, we are less of a deterrent on labour regulations than China or Pakistan and we are higher up the ladder on this count than quite a few countries. India is higher on infrastructure, labour availability and skills but ranks lower in terms of our quality of geological database. We are also ahead of others in terms of political stability despite our fractious politics.

VOL. 10 | ISSUE 10 | JAN 2017

Click to comment

You must be logged in to post a comment Login

Leave a Reply

To Top
Latest Articles
close slider

Lastest Articles

 
From the Editor : Anil Tyagi
 
Eyes Wide Shut : A unique initiative
 
Police Reforms : Crime and Politics
 
Police Reforms : Fear remains the key
 
Police Reforms : Sensitising the police
 
Governance : Railways – Sarkar or Vyapar ?
 
Governance : AFSPA – A law that needs to go
 
Governance : A case of an FIR and an award
 
Governance : Development Agenda for New India 2022
 
Governance : Time to cash in
 
Governance : Too much noise
 
Corruption : FROM RAJ TO RAFALE – 1 : Clive of Corruption
 
Bric a brac : Amit Shah takes centrestage
 
Bric a brac : Arrogant ministers and the media
 
Bric a brac : AICC faces space constraint
 
Bric a brac : Now, Made in Gujarat
 
By the way : Rockstar Amitabh
 
By the way : J&K Police needs a DG
 
By the way : Roaring Khandelwal
 
By the way : Super Chief Minister!