Despite seeking “Indian Make-up” and promises of a global manufacturing shift from China, many Indian entrepreneurs have found that their biggest challenge is not foreign competition but navigating the Indian bureaucratic maze.
Sunday's X post hits a chord on Indian startups and the MSME ecosystem. From the requirements of absurd papers to arbitrary government interventions, the thread has rekindled debates about the ease of business in India, especially compared to Asian manufacturers such as China and Vietnam.
“If you are a brave Indian who has decided to start an MSME or a manufacturing company, or a factory, then the local government clerk/official can reject the land registration file because the annex is missing on page 16 of the 17th form.”
It's just more irritating from there. “The GST application may be marked for physical verification, despite digital Aadhaar verification, as Insta photos and Aadhaar cards photos do not match.” Another example is, “The Salt Commissioner's office can send notifications of misuse of the land in Salt Pan, even though your land is 600 km from the nearest sea.”
This post is more than just abusive. It reflects why many Indian manufacturers struggle to survive. Entrepreneurs spend more time fighting red tape than competing for product, cost or quality. “That's why most aspiring entrepreneurs went home wondering if they should simply stick to a normal paying job.”
In contrast, China and Vietnam have built robust ecosystems for manufacturers, streamline permits, provide incentives, and enable rapid scale. In contrast, Indian entrepreneurs face the threat of environmental notifications for non-existent trees and penalties for false commas.
“Most of the great souls who endure are spending most of the time and energy fighting the Indian government's machinery in compliance. Not China/Vietnam, not cost and quality.”
Until India addresses these systematic issues on the ground – on paper, it risks losing the world's manufacturing pivot, which could have been its critical economic opportunity.