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Non-conducive business environment in India

Though Sensex in India had taken a dip after maintaining a steady growth for quite some time, it could hardly draw the attention of the business magnets. Sensex has again climbed up out of the blue and that hardly reflects the healthy or stable economic condition of the country. The boost of Sensex was triggered off by a sudden investment by foreign capital venture capitalists.

Similarly, the news of the country’s foreign exchange reserves exhibiting a well deserved growth curve has failed to attract the venture capitalists.

This is indeed true that the foreign exchange reserves which had been showing a continuously downward trend has dramatically changed aided by RBI’s several pragmatic steps to boost inflows to come out of such an economic turmoil.

On the contrary the market speculates the realty prices to fall by 10 to 15 percent in near future due to various factors, out of which the diminishing capacities of the buyers are also been taken into account.

The above news flashes have certainly depicted an unstable economic condition that is difficult to withstand by the business investors. Such a turbulent condition, fueled by the acts of some Government agencies, may continue up to the next general election, which may result in a change in the Government at the centre in the next year.

The lack of responses in Twitter and Facebook in favor of Congress has been endorsed and there have been enough indications that Narendra Modi or any other leader may occupy the most precious chair of the Indian Government by dislodging Manmohan Singh in 2014. Changes in business policies have become vibrantly evident, if BJP comes into power.

According to the survey of the World Bank, the angel investors never like to start a business in Mumbai, the business capital of India or Bangalore, the silicon valley of India.

Any entrepreneur has to overcome a lot of legal hurdles and inevitable bureaucratic hassles to launch his commercial or industrial firm, which would cost him too dear. Why should that prompt a businessman to invest among such political doldrums and economic turbulence?

India has been marred by several unseemly incidents that have vividly exposed an accord of discomfort of various business houses in the last couple of years. Whether it is the hyperactive CBI against Kumar Mangalam Birla or SEBI’s red eyes on Sahara or RIL, the businessmen of the country, the large conglomerates in particular, have been highly displeased for obvious reasons. It is also hard that the rivalry between Modi and Rahul has triggered off the Amul rift.

The fact of life remains that the businessmen have become panic stricken. A capable leader and a stable Government with the ability to take firm decisions can only restore the confidence of the businessmen in India.

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