The government is for good governance. However, on many occasions instead of playing this role, we have seen its raising encumbrance.
p____p In India, it does seem that the biggest challenges have always come not from the lack of potential in the country but because of the lack of will from the powers that be. Many state governments have been guilt of coming out with arbitrary and illogical Tax policies. The confusion over the Vat implementation is only a new chapter in this long story.
p____p Besides this, we have seen the visible irritation with a critical bureaucratic arm of the government, the customs department. I have heard many notable people on different occasions mention that the customs procedures have always been a big challenge to them.
p____p And when I have asked the same people if they are thinking of any manufacturing initiatives, the answers are almost always uniformly cynical. The high duties have always been an object of derision.
p____p Internationally, too India has been short of the competitive edge and losing out to countries such as China, because of the delays caused on the customs clearances front. Shipping out of India and into India can always cause delays.
p____p Add to this that India needs to compete with countries, which already have a natural advantage in terms of more strategically favorable ports, it does seem that that the government is just not doing enough.
p____p Further, with IT coming out the latest gizmos at a rapidly increasing phase, it adds to the confusion over classification of categories. The customs department could do well to keep abreast of the developments, to make the life of businessmen easier.
p____p The governments and its departments need to get some essential facts right. They have to start playing the role of facilitators, which I suppose, they have forgotten to.
p____p For the country to compete globally, the babu attitude and red-tapism need to be leashed. With Arun Shourie now heading the IT ministry, maybe we can now really look forward to some good initiatives.