Investing in new venture-barriers troubling South Asia

There has been monopoly in lot of sectors today, and this has been acting as one prime reason for hindrance for entrepreneurship promotion throughout South Asia. There is syndicate system in lot of fields that obstructs the new business ventures, and de-motivates the investors to invest amount taking up some new business.


 The policy except India seems to lack logical explanation some times. Corruption on the other hand is another important regulatory hurdle for anyone who seeks for new venture. Whenever, one takes a step ahead of planning for new business venture, it is certain for him that he will be facing this problem time and again. From local groups, to Government officials, the work gets done in time only if you are willing to give them money from under table. This has been de-motivating and discouraging factor for any new person, who thinks of starting some small venture instead of flying abroad. Youths barely attempt for anything positive and then.

Any investor wants to invest, or start up a new business in the space where they get the sense of belongings. They want to invest in such a space where they would feel the security and freedom to trade with the parties that they want. They certainly would not want to invest in those markets where there is entry barrier, where they can’t compete, where there lacks the easy way to exit, where there is lack of syndicates and special privileges, and where they won’t get the feeling of being discriminated. They don’t want the barriers much often; they want the place where they would get the decision power of buying goods of their choice. Ultimately, they want to keep what they earn. Only when Economic freedom is ensured, these factors are ensured. South Asian nations have not been part ofimpressive Economic Freedom Index (EFI) either.

Before any investor from abroad try to invest, they definitely go through survey among local investors. So, only when they get positive vibes from local investors, they come with the huge projects. They would then look at the EFI data around. Decrement in the number of projects among the two countries portrays investors drawing back their hand.

This has to be understood that India made rapid development after they brought new Industrial Policy in 1991 that gave huge priority to Licensing ease, low (even no) involvement in major industries of Government, incentives and concessions for foreign investment and technology, drastic amendments to Monopolies and Restrictive Trade Practices and removal of compulsory convertibility clause. Investment then began there, else the Indian Investors had gone to various parts of the world like Uganda and other African Countries, Arab Countries for Investment. India should have been taken as lesson throughout South Asia.

At the time, when even big Indian investors are looking out-country investment, why would any domestic investor make his prime vision within the country? If investing nearby, maybe China or Qatar would be easy and less risky, they would go there for sure. One reason to stop this, can be through Economic Freedom. Any investor wants to invest, or start up a new business in the space where they get the sense of belongings. They want to invest in such a space where they would feel the security and freedom to trade with the parties that they want. They certainly would not want to invest in those markets where there is entry barrier, where they can’t compete, where there lacks the easy way to exit, where there is lack of syndicates and special privileges, and where they won’t get the feeling of being discriminated. They don’t want the barriers much often; they want the place where they would get the decision power of buying goods of their choice. Ultimately, they want to keep what they earn. There can be seen problems in case of Hongkong politically; however, since they have managed to provide Economic Freedom, it is growing up in the upper trend. So can be regarded as the example of Singapore, and China as a whole. However, political rest is one important aspect for encouraging investors to make up their mind for investment within the country.

There are wonderful acts and policies throughout South Asia. There had been BIMSTEC and SAARC too; but neither did BIMSTEC work, nor did SAARC or SAFTA made any progress. Policies and acts were all limited to papers itself.


There clearly seems to be a huge gap between two ministries: Ministry of Commerce and Ministry of Industries. Maybe, division into two separate ministry itself was an invitation to trouble there. This clash needs to be managed every times the Government changes. Instability of Government itself is one huge trouble thereby, that requires special focus and attention. Maybe we need separate body to work for Investment? There have been huge donations that are coming into the country through foreign aids. These aids are getting slow process, and that has to be effectively monitored. There has to be proper implementation of rule of law.

With India within, South Asia itself is huge market; and we are unable to satisfy the need of our own market. As a result, foreign investments are taking pace. That’s like we do have everything in our own garden, but since we can’t pluck; we have to purchase vegetables from the neighborhood. South Asian image can only be developed through promotion of entrepreneurship. Every attempt of entrepreneurship should be attempted.

Published in State Times of Jammu and Kashmir dated 11/7/2017
http://news.statetimes.in/investing-in-new-venture-barriers-troubling-south-asia/