Are the current policies scaring away risk-takers more than attracting them?

##Why is ‘ease of doing business’ ranked so lowly for India?

India ranks almost at the bottom in terms of ease of doing business. This has been one of the biggest problems for India for the longest time. This is even more punitive for start-ups who don’t have the resources nor the fire-power to overcome many archaic rules and excruciatingly long processes. There are so many issues from registering the company to cumbersome taxes to capital management in terms of raising capital, valuations, outflows, inflows etc. to ability to operate and forge collaborations globally to many restrictions on stock options which are the main incentive for start-ups to acquire and retain talent. The new Companies act is full of rules to catch few bad guys at the expense of scaring away many of the good guys. The process should be simple, transparent and conducive to start-ups. At the same time, there should be rigorous regulations to track and monitor business activity through various reporting and filing requirements. As a result, many of the big and small Indian companies are choosing to have non-Indian addresses. For the average Indian e-shopper, Flipkart is probably the biggest INDIAN brand that embodies a truly successful start-up. But, technically, it is a subsidiary of Flipkart Holdings based out of Singapore. There are many such examples. This is not good for long term growth and value creation. You want companies to redeploy and reinvest the profits in the county but not parked outside the country. Access to equity markets should be simpler so that more start-ups can use IPO to provide exit to some of the shareholders while raising enough capital to continue to grow the company. A successful and healthy Private Equity and IPO market will have tremendous domino effect on rest of the start-up and innovation cycle.
####Economy Rankings