Ex Servicemen and Self Employment

Analysts say the number of approvals required from government agencies for setting up mid- size industrial plants has increased in some sectors despite economic reforms.

To set up a mid- size factory, at least fifteen state and six central government clearances are required. And that's not all. Indian manufacturers face an average 7.4 visits each year from government officials, wryly nicknamed "inspector raj".

Drastic changes may be visible soon as the government plans to cut down the time taken for various clearances to 3 months from present 10 months. But some areas such as employment are more problematic.

It is estimated that there are 47 central government laws and 157 state regulations governing employment— often inconsistent and at times overlapping.

Reforming labour regulations is a priority for India. The current rigidities impose significant costs in terms of lost jobs, but policy makers say touching them is just too controversial. Till now there is no unified policy to regulate employing ESM as security Guards in Civil Sectors. Most of ESM working with Security Agencies are underpaid and exploited.

There is strong opposition to reforms in India from certain quarters and they embrace or include both the left and the right. Reforms have been fitful, ad hoc and they have been abandoned as soon as they have encountered political or other kinds of opposition.

Ex Servicemen need fast tract clearances for setting up mid size projects and industrial units to utilise the reservoir of latent talent available for self employment.

James Kanagaraj
Lt Col (Retd)
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Brig Sukhwindar writes...
I am afraid the Post 'Ex-Servicemen and Self-Employment' is NOT well-researched. I have been running a private ltd company in IT since 1998. Only one official has visited Me. Yes, other Sectors have more Inspectors coming. There is a lot of change now. CII, FICCI, ASSOCHAM, and Other Trade Orgns continuously pressurise the Govt. on the Issue. Mid-sized companies by the ESM? Just kindly look at the Outlay needed. This Article would scare away would- be ESM Entrepreneurs. Suggest the "loader" must correct the facts in the article.

Sukhwindar Singh
Brig (Retd)
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Kindly Visit
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Riding a Elephant

James Kanagaraj
Lt Col (Retd)
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