Sunday, September 10, 2006
What liberalisation? What freedom?
Swaminathan Aiyar writes in the Times of India:
For enforcement of contract, which is fundamental to business, India ranks 173rd. Enforcement requires 56 procedures over 1,420 days in India, 31 procedures over 292 days in China, 16 procedures over 211 days in Hong Kong. India is doing well in international trade.And so on and on. I'd written on the same subject last year for WSJ, so in case you haven't yet read it, here's "The myth of India's liberalization."
Yet, Indian exporters have to produce 10 documents over 27 days, against six documents over 18 days in China and two documents over five days in Hong Kong. The import cost per container shipped is $1,244 in India, against $425 in Hong Kong and $375 in China.
Starting a business takes 35 days in India, the same in China, but only 11 in Hong Kong. Winding up a business takes a phenomenal 10 years in India, 2.42 years in China and 1.08 years in Hong Kong.