Small Enterprise Magazine June-2023-Digital

14 YEARS JUNE 2023, 200 VOLUME - XI, ISSUE - II INDIA.COM Aspire AEONIAN LLP EASE OF DOING BUSINESS IN INDIA Ajay Thakur Head SME, BSE SME Avinash Godkhindi MD & CEO, Zaggle



EDITOR’S NOTE www.smallenterpriseindia.com Dear Readers, EDITORIAL TEAM Welcome to the exhilarating voyage that awaits you in the latest Dojo Jose : Editor-in-Chief & Publisher edition of Ease of Doing Business for Small Enterprise Magazine. [email protected] Prepare to be captivated as we unravel the extraordinary story N Mahesh : Associate Editor behind India's triumphant rise in the global business arena. This Dhanya Menon : Features Editor edition is not just a mere collection of articles but a transformative Vaibhav A : Copy Editor experience that will ignite your entrepreneurial spirit and inspire you. Sandeep Kumar : Sub Editor/ Deputy Editor Let’s envision a world where boundaries cease to exist, possibilities Babu S : Senior Correspondent are boundless, and dreams turn into reality. India's remarkable ascent in the Ease of Doing Business rankings is a testament to our SALES & MARKETING unwavering spirit, relentless pursuit of excellence, and audacious Sonali reforms. From a position of modesty to the resounding roar of Manager - Partnerships & Alliances triumph, India has defied expectations, leaving a trail of inspiration in its wake. ADMIN Imagine a world where justice is swift and the wheels of legal Sudha - Assistant Manager - Admin & HR resolution turn in harmony with the needs of businesses. Faster contract enforcement, streamlined case management, and pre-trial FINANCE conferences will become the hallmarks of our legal landscape, Balraj M.S : Finance Manager empowering businesses to thrive and prosper. A world where property registration is a seamless journey, where the IT DEPT labyrinth of procedures dissolves, and growth and prosperity Raheel Mohammed - Manager - IT flourish. Say goodbye to the days of convoluted processes and welcome a streamlined registration experience that unlocks the true Design potential of businesses and investors. Where innovation and growth Parithimal E : Senior Designer take center stage. By embracing technology, simplifying procedures, and reducing administrative burdens, we pave the way for a MANAGEMENT flourishing business ecosystem where innovation thrives. Dojo Jose : Founder & Publisher India should be the hub of entrepreneurs, where starting a business Tapasya Ravishankar : Co-Founder & Director is a voyage of passion, unencumbered by red tape and bureaucracy. Doramma Jose : Managing Director We are surmounted by an environment where entrepreneurs can spread their wings and soar to great heights. CONTRIBUTORS Celebrate the remarkable milestones already achieved as you Archana : Mumbai embark on this extraordinary narrative. India's corporate laws and Harpreet Kaur : Mumbai securities regulations have been hailed as ideals of excellence, Mamta Sharma : Ahmedabad safeguarding the interests of minority investors. We invite you to be Gagneet Singh : Mohali part of this extraordinary narrative, where the words on these pages Itishree S : Hyderabad come alive, inspiring and empowering you to be the change you Jill Shah L: Ahemedabad wish to see. With unyielding determination, we march towards our Nidhi Arora : New Delhi destiny, fuelled by the dreams and aspirations of a billion souls. Nidhi Vats : Gurgoan Embrace the possibilities, for India's moment, is now. Priya Ravindran : Bangalore R.Sundararajan : Coimbatore With warm regards, Rajesh Kumar : Kolkatta Rekshma A : Chennai Dojo Jose Smitha Venkiteswaran : Goa Viraj Desai : Delhi Dojo Jose Abha Chopra : Delhi Editor-in-Chief Shalini Jyothi : New Delhi Priyanka Bhowmick : Guwahati COLUMNISTS Smitha Hari : Mumbai Akshatha Sajumon : Bengaluru Rashida Khilawala : Ahemedabad Chackochen Mathai : Chennai MAGAZINE SUBSCRIPTIONS To subscribe to Small Enterprise magazine, please email us at [email protected], “[email protected] HOW TO CONTACT US: Aspire AEONIAN LLP (formerly Aspire Media) #630, DHI Innovation Park, Bannerghatta Main Road, Bangalore - 560 076, Email: [email protected] Web: www.smallenterpriseindia.com Disclaimer : This publication may not be reproduced or transmitted in any form in whole or in part without the written permission of the publishers. The Publishers regret that they cannot accept liability for errors or omissions contained in this issue. The opinions and views expressed within this publication are not necessarily those of the publishers or the editor. The editorial items appearing in this publication are the copyright property of Aspire AEONIAN LLP. All rights reserved.

VOLUME - Xl, ISSUE - II JUNE 2023 | `200/- 06 24 FAMILY BUSINESS SPOTLIGHT 06 THE MULTI-FACETED WORLD OF MODERN FAMILY BUSINESSES IN INDIA 10 Awign: RESHAPING THE GIG ECONOMY WITH TECH AND INNOVATION 16 AGRIM - A REVOLUTIONARY AGRICULTURAL TECHNOLOGY STARTUP 24 SPOTLIGHT - ZAGGLE

32 COVER STORY 79 FINANCE 79 COLLATERAL-FREE SME LOANS 83 TECHNOLOGY 32 EASE OF DOING BUSINESS IN INDIA GLOBAL PERSPECTIVE 83 HOW CAN YOU USE CHATGPT FOR YOUR SMALL BUSINESS AND THE FACTORS THAT INFLUENCE THE RANKING 87 HOW TO START AN EXPORT BUSINESS AND TOP IDEAS 36 EASE OF DOING BUSINESS: CHALLENGES AND THE 93 MARKETING ROAD AHEAD 93 EFFECTIVE MARKETING STRATEGIES TO HELP SMEs GROW 39 INDIA STANDS AT 63 IN THE GLOBAL RANKING 97 HR 56 HOW INDIA PLANS TO GET INTO THE TOP 50 GLOBAL RANKS 60 EASE OF BUSINESS AND FDI INFLOWS 63 THE LEGAL AND REGULATORY ASPECTS OF DOING BUSINESS IN INDIA 69 TOP 10 INDIAN STATES FOR EASE OF DOING BUSINESS 73 THE ROLE OF DIGITAL TRANSFORMATION AND INNOVATION 97 HR BEST PRACTICES FOR SMEs IN ENHANCING THE EASE OF DOING BUSINESS IN INDIA

FAMILY BUSINESS THE MULTI-FACETED WORLD OF MODERN FAMILY BUSINESSES IN INDIA India has a rich and diverse culture, and this is world of family-owned businesses in India, reflected in the way we do business. From exploring the trust, value, family, revenue, multi-generational family businesses to Silicon modernization, employee, technology, and new Valley startups, Indian businesses have made their generation factors that contribute to their success mark globally. or challenges. In this article, we will delve into the fascinating The Trust Factor fact, India with a trust score of culture, family goodwill, and In a job market marked by 78% in family business is way reputation. massive layoffs globally, family above the average trust score of businesses continue to hire, retain, 69% globally. Conversely, if there are issues with and train their employees. An the family's reputation, this can interesting global study - Edelman In fact, this trust and value undermine the trustworthiness of Trust Barometer on family superiority can become a the business. One area of business noted that family competitive advantage for improvement for the Indian businesses are more trusted than family-owned businesses, by Family-owned business may be to other businesses in general. In differentiating themselves based build trust by being more on heritage, family-oriented transparent in their 06 \\ Small Enterprise \\ Jun 2023

decision-making process and On the other hand, strong family terms of funds, expertise, operations. An important aspect dynamics result in a powerful technology, experience, etc. Many of this is transparency in the HR business story that carries a lot of of these organizations experience policies of an organization, weightage with key stakeholders growth stagnation or even a especially salary structures, inside and outside the downward trend before they performance, and appraisals. organization. A strong identify the need to get external family-driven culture and goodwill support from industry bodies, The Family Factor can also enable the organization consultants, or even business It is interesting to note that family to be resilient under volatile mentors. business is not a concept that is conditions. unique to India. However, what is The Modernization Factor unique is that India is perhaps the It is quite fascinating to realise We can no longer use the prefix only country where we have the that many of the current Indian “Traditional” when it comes to “Joint Family Business”. This business houses have their roots Family Businesses in India. Family means that the family not only do as a family-owned businesses. Go Businesses today invest in business together, but they live ahead and name the top business professionalising their together too. houses in India and see for organization by exposing the next yourself! generation to global education It is for this very reason that family and work experience. Secondly, dynamics play a huge role in the The Revenue Factor they also bring in professionals to success and failure of the India has the third-largest number take on strategic roles that define organization. Conflicting priorities, of family businesses globally. In the future of the organization. disagreements about the direction fact, Family businesses account for And that’s why we can proudly of the business, and unclear roles 79 percent of the national GDP in rename these business houses as and responsibilities become more India. “Modern Family Business”. challenging when infused with family drama. It becomes difficult However, only 20% of the family With these changes, Large to separate business and family businesses contribute to 80% of Modern Family Businesses have roles, close generational gaps and this GDP value. The rest are gained the ability to think BIG, ultimately establish professional ensnared in the struggle to speak the global business structures for the betterment of expand and diversify. Some of the languages, attract, and retain key the organization. factors contributing to this talent, and measure massive challenge are limited resources in success year on year. The Employee Factor Employees of large family businesses feel more connected to the core purpose of the organization and have more opportunities to participate in the planning process of achieving this purpose. These organizations are the ones who have invested in their employees, be it remuneration, learning and development, processes, systems, or technology. Paradoxically, there are family-owned businesses where 07 \\ Small Enterprise \\ Jun 2023

the upper echelons do not engage also made it possible for these leadership roles. Senior members with the employees for strategic businesses to invest in technology of the family typically hold decisions, sandboxing this without the need to have a leadership roles functionally of responsibility only with the core full-fledged in-house tech team to business units wise. family members. The employees manage the technological assets are then seen as an execution of the organization. While some of these seniors have team, maybe even an expert developed leadership traits over execution team, but nevertheless The New Gen Factor time, most of them may be limited to tactics and action only. While the continuity of ill-equipped to manage the These are the organization that family-owned businesses depends responsibilities of the leadership struggles with higher employee on handing over the baton from role. Again, while some of them churn, especially at the one generation to the next, the have accurately identified this mid-managerial level, as the reality today is that the senior gen shortcoming and hired managers do not see any growth continues to play a crucial role in professional leaders from outside trajectory into leadership levels. stewarding the organization. In the family, most of them are fact, a study in India showed that oblivious to the leadership There often exists huge salary more than 80% of these deficiency. disparities between family-owned businesses continue to have the businesses and professionally run founders playing an active role in Solutions Abound businesses. Sometimes there are the family business. And most salary disparities with the often than not, these founders There are many solutions to these family-owned organization too. have crossed the retirement age challenges. Some of the ones, One main reason is the lack of HR of 60-65 years. The impact of this worth exploring are. practices such as employee grade is that succession timing is not structure, performance defined clearly. Two generations Implementing a clear family management systems, and a with possibly contradicting business governance structure, structured compensation and priorities struggle to exert control where responsibilities are benefits strategy. of the future direction of the divided based on merit to both organization. family and non-family The Technology Factor executives. A board of directors Technology has penetrated every This could also be one of the with independent members aspect of our economy. And reasons for the slower adaptation could add considerable value in Family-Owned Businesses are no of technology and a slower rate of this regard. exception. Though slow to adopt, modernization compared to other the changing landscape in India general businesses. Investing in HR best practices has galvanized these businesses from hiring to retiring. to adopt technology to stay However, as discussed earlier, with Employee development competitive, adhere to legal and the exposure of the next programs for technical governmental compliances, generation to global education, it expertise, improved soft skills, improve efficiency, increase would be a matter of time before and leadership traits through productivity, reduce cost, and Modern Family Businesses bridge mentoring and coaching enhance customer experience. this gap. should be prioritized. The Digital transformation wave The Leadership Factor Developing structured across India has also pushed We have covered this in bits and succession plans to ensure that traditionally non-tech, pieces throughout this article. the business is passed on to Family-owned businesses to However, the leadership factor is the next generation in a embrace digital payments, important enough to be seamless manner. This would cybersecurity, digital marketing, addressed separately. also ensure that the most and sales. The SAAS model has Family-Owned businesses seem to qualified family member is equate familial seniority with chosen to lead the business. 08 \\ Small Enterprise \\ Jun 2023

Diversifying the business into and coaches. - Neetu V. Bansal newer markets or developing new product/ service lines will All the above solutions require a International Business Coach, help the family-owned business shift in the mindset of the Mentor and Author. create new growth leadership along with time and opportunities and mitigate focused efforts. Neetu V Bansal is an international risks. Business Coach, Mentor and In conclusion, family-owned Author. She works with Early- She Embracing technology to businesses in India are unique in works with small and medium improve efficiency and create their joint family dynamic and business, startups and early-stage momentum for scale. Investing traditional values. However, the organizations helping them in data-driven decision-making changing landscape in India has generate more leads, close more capabilities, and exploring pushed these businesses to sales and ultimately earn more technology platforms such as modernize and adopt new revenues and profits. She is CRM, HRMS, PMS, etc, would technologies to stay competitive. passionate about applying Customer yield huge rewards to the As we look towards the future, the Perspectives in business and business. success of family-owned propagates this framework to solve businesses will depend on their Marketing challenges. Seeking outside advice and ability to balance the family and providing objective advice on business dynamics, embrace 09 \\ Small Enterprise \\ Jun 2023 critical business decisions, modernization, and invest in their latest industry trends, and best employees and new generations. practices. This could include With the right balance, these professionals such as lawyers, businesses can continue to thrive accountants, technology and leave their mark on the global consultants, business mentors, business landscape.

STARTUP STORY | AWIGN AWIGN: RESHAPING THE GIG ECONOMY WITH TECH AND INNOVATION In the bustling metropolis of Bengaluru, amidst the power of technology and an insatiable passion for ever-evolving landscape of India's technological creating positive change, founded Awign in the prowess and innovation, a tale of transformation year 2016. unfolded. It is the remarkable journey of three young visionaries who embarked on a quest to Little did they fathom that their innovative reshape the gig economy, forever altering how platform would ignite a revolution, fundamentally flexible work arrangements were perceived. changing how gig workers connected with compa- Gurpreet Singh, Praveen Kumar Sah, and Anannya nies and fostering a seamless end-to-end experi- Sarthak, driven by an unwavering belief in the ence that would forever redefine the landscape of flexible work arrangements. Bridging the Gap: The Birth of vast reservoir of talented and workers, an opportunity they Awign flexible workers. Within this seized upon with resolute Awign's inception sprang forth at backdrop of burgeoning determination. a time when gig jobs were opportunities and untapped surging in popularity among the potential, the founders Awign's platform not only youth, and companies were recognized a glaring gap bridged this divide, but it went a fervently seeking to tap into the between enterprises and gig step further by assuming the 10 \\ Small Enterprise \\ Jun 2023

mantle of handling the entire Series A round and an considerations. gamut of processes. From undisclosed amount in the meticulous recruitment and pre-Series B round, Awign These coveted job listings, comprehensive training to galvanized its growth trajectory, veritable lighthouses of vigilant task supervision and fortifying its position to scale its opportunity, found their rightful triumphant completion, Awign reach across the vast expanse of place on Awign's platform, forged a holistic ecosystem that the nation. beckoning gig workers with a brought unprecedented benefits siren call. And to ensure that to both sides. A Seamless Ecosystem: excellence pervaded every Orchestrating the Symphony of endeavor, each gig worker Fueling Growth: Investor Connection underwent a comprehensive skill Confidence and Boundless At the epicenter of Awign's assessment, arming them with Possibilities extraordinary platform lay a the necessary training to flourish The founders poured their hearts harmoniously integrated in their appointed tasks. and souls into crafting a platform workflow meticulously that would etch an indelible mark engineered to facilitate seamless Empowering Efficiency: The on India's gig economy. Their communication and effortless Convergence of Art and relentless pursuit of innovation task allocation between clients Algorithm captured the attention of and gig workers. Clients, with Awign's inherent strength lies in prominent investors, among their aspirations and its allocation engine, a powerful them Unitus Ventures, the requirements, embarked on a masterpiece powered by Michael and Susan Dell voyage as they onboarded onto cutting-edge algorithms. These Foundation (MSDF), Eagle10 the platform, their every nuanced algorithms, infused with the spirit Ventures, and Bertelsmann India detail carefully of ingenuity, deftly factored in Investments. With a staggering captured—volumes, quality variables such as proximity, infusion of over $4 million in the parameters, and commercial availability, and the tapestry of 11 \\ Small Enterprise \\ Jun 2023

past performance, expertly mighty fortresses of FMCG and unforeseen trials and tribulations. pairing each micro-task with the the intricate tapestry of BFSI to However, Awign's indomitable most adept and suitable gig the bustling landscapes of spirit and unwavering worker. The vigilant eyes of a E-commerce, Retail, Hospitality, commitment to innovation dedicated fulfillment team and Construction, Awign unfurled radiated through the darkest ensured real-time on-ground a tapestry of offerings. times. In response to the crisis, performance monitoring, acting they unfurled the Awign Covid-19 as the sentinel of task completion Verification and audits danced in Compliance Platform (ACCP). This and the guardian of stringent harmony with new business mobile app-based sanctuary quality control. development while the symphony embraced thousands of of high-volume calling, digital individuals, guiding them on the Clients were bestowed with gigs, and last-mile delivery path of compliance with complete visibility, an resonated throughout the government norms and all-encompassing vantage point corridors of possibility. Such protocols. achieved through an intuitive and versatility positioned Awign as comprehensive dashboard, the quintessential maestro, Through this revolutionary empowering them to make drawing enterprises from various initiative, Awign transformed judicious decisions based on the industries to its platform, deftly adversity into an opportunity to profound insights generated. addressing their multifaceted create a safe work environment, needs with surgical precision. staunchly guarding against the Versatility Across Industries: An relentless spread of the insidious Overture to Diverse Sectors Navigating Challenges with virus. This unparalleled display of Awign's platform stood as an Innovation: The Triumph Over adaptability and technological industry-agnostic marvel, an Adversity prowess underscored Awign's orchestration of services that In the annals of Awign's resolute dedication to meeting seamlessly catered to a diverse illustrious journey, the COVID-19 the evolving needs of both gig range of sectors. From the pandemic etched a chapter of workers and enterprises. 12 \\ Small Enterprise \\ Jun 2023

Building a Strong and investing in the growth and economy. Awign's platform Organizational Culture: A development of their employees. boasted a microservice Symphony of Excellence This harmonious symphony, architecture, with the resounding While Awign's innovative composed of a workforce notes of Java, Ruby, and Python platform stood as a testament to comprising 150 gifted individuals, interwoven within its backend its prowess, the true heart of its resonated with unparalleled services. success beat within the brilliance, propelling Awign to passionate and talented team new heights. The web platform itself, a that propelled it forward. Awign resplendent masterpiece, fostered a fast-paced and Embracing Technology: The showcased the enchanting intellectually stimulating work Symphony of an Evolving Tech melody of React, enveloping environment, an incubator of Stack users in a modern and dynamic continuous learning, In Awign's transformation experience. As the company collaboration, and audacious symphony, technology formed traversed the symphony of problem-solving. the backbone, orchestrating the growth, its tech stack seamless harmony that metamorphosed, expanding to The founders, recognizing the empowered their platform. From incorporate backend services in symphony of talent and ambition its inception, the founders Java and Python, each note struck resonating within their ranks, wholeheartedly embraced the with precision to deliver diligently cultivated a robust pivotal role technology would enhanced efficiency, simplicity, organizational culture, nurturing play in revolutionizing the gig and limitless scalability. Harnessing the Power of Data: The Crescendo of Insight Within Awign's symphony, the resounding notes of data analytics resounded, a crescendo that propelled the company's growth strategy to new heights. They beckoned Google BigQuery, a formidable conductor, to lead the orchestra of data warehousing and visualization. Additionally, they crafted their own Python data pipeline, a magnum opus of technology, deftly gathering data from multiple applications and elegantly ingesting it into the expanse of Google BigQuery. This harmonious symphony of data empowered Awign to derive invaluable insights, ushering forth a paradigm shift in how gig workers and enterprises approached flexible work arrangements. Furthermore, Awign's 13 \\ Small Enterprise \\ Jun 2023

data-centric mindset extended cost-effectiveness and scalability unwavering belief in the power of beyond internal operations. They allowed Awign to operate technology and commitment to recognized the value of sharing efficiently and maintain a creating a seamless ecosystem aggregated and anonymized data competitive edge in the market. for gig workers and enterprises with their clients, providing them has positioned Awign as a with valuable market intelligence, Recognition and Impact: transformative force in the gig benchmarking insights, and Awards and Social economy. performance analytics. Awign Responsibility fostered trust and collaboration The success of Awign's innovative Awign's impact goes beyond with their clients by offering this platform and its commitment to business success. Through data-driven transparency, reshaping the gig economy was partnerships with nonprofit empowering them to make reflected in its impressive growth organizations and government data-informed decisions and and the recognition and bodies, their commitment to optimize their workforce accolades it received. The social responsibility has enabled management strategies. company is honored with several them to create skill development prestigious awards, including the programs and job placement Cost Optimization and Economic Times Startup Award in initiatives for underprivileged Scalability: Balancing Efficiency 2019 for Best Disruptive Startup. individuals, making a positive Cost optimization was another Awign also prioritized social difference in society. key consideration for Awign as it impact, partnering with nonprofit scaled its operations. The organizations and government As Awign looks ahead, they company primarily hosted its bodies to create skill remain committed to driving the services on AWS, with some development programs and job future of gig work. By deepening services utilizing Google Cloud. placement initiatives for its presence in existing sectors, Through continuous underprivileged individuals. expanding into new verticals, and optimizations and fine-tuning, forging strategic partnerships, Awign managed to significantly Conclusion: A Transformative Awign aims to enhance its reduce its IT costs while Force in the Gig Economy platform's capabilities and extend experiencing substantial growth Awign's story is one of passion, its reach. in sales and user base. Striking a innovation, and a deep balance between understanding of the evolving -SUMANT gig economy. The founders' 14 \\ Small Enterprise \\ Jun 2023



STARTUP STORY | AGRIM AGRIM - A REVOLUTIONARY AGRICULTURAL TECHNOLOGY STARTUP AGRIM is a revolutionary agricultural technology solve problems and increase productivity. This startup that is transforming the agricultural sector. article will discuss Agrim, its founders, the found- This company is one of the few startups taking ing year, funding, investors, and category. agriculture to the next level by using technology to Website Founder in farming, marketing, and Agrim's online portal, located at Mukul Garg and Avi Jain, Agrim's distributing agricultural products. https://agrim.app/, boasts an creators, are highly experienced Their extensive involvement in elegantly crafted and intuitive in the agricultural sector. After various areas of the farm sector interface. The site's sleek design years of working in various roles, gave them a unique perspective facilitates easy navigation and they took a significant step and on the obstacles faced by farmers fosters a seamless user launched Agrim. They aimed to in different regions. They experience. Additionally, the create an innovative platform to established Agrim to bridge the platform's blog section serves as revolutionize farming practices by gap between technology and an informative resource for helping farmers boost agriculture by leveraging their clients seeking to broaden their productivity, reduce expenses, knowledge and expertise. knowledge of Agrim, its and enhance overall efficiency. merchandise, and the agricultural Agrim's progenitors are among industry as a whole. Before establishing Agrim, Mukul the most prosperous industrialists Garg and Avi Jain were involved in India's farming division, and 16 \\ Small Enterprise \\ Jun 2023

they have their sights set on precision farming technology techniques like intercropping influencing the world stage. They that leverages real-time data (cultivating multiple crops on the aspire to furnish modernized analysis to provide farmers with same land), cover cropping technologies at equitable fees to comprehensive crop (planting crops specifically to advance farmers globally, beyond management decision-making enhance soil health), and India's borders. They assert that capabilities. integrated pest management ingenuity is paramount in (employing natural predators to resolving multifaceted agrarian Farmers can monitor and track control pests). predicaments, and they are soil moisture levels, nutrient resolute in accomplishing this concentration, and pest Through these endeavors, Agrim target through Agrim's infestation severity with precision is aiding farmers in producing pioneering resolutions. agriculture. This high level of more food while minimizing their insight empowers them to environmental impact. Founding Year optimize resource consumption, Agrim was founded in the year including water and fertilizers, Altogether, Agrim's pioneering 2020 to revamp the agricultural leading to increased crop yield approach toward agriculture domain. The corporation has and reduced costs. holds immense promise for the since then achieved remarkable future of farming. By leveraging progress by developing Agrim's revolutionary and technology and sustainable avant-garde technologies and sustainable agricultural practices practices, Agrim is redefining pioneering agricultural practices have enabled the corporation to food production, making it more that aid cultivators in enhancing make noteworthy strides in efficient, profitable, and their crop yield, reducing reducing wastage and promoting ecologically conscious than ever wastage, and eventually, biodiversity on farmland. before. escalating their revenues. The company has devised Funding Agrim's remarkable agricultural inventive solutions for Agrim, a revolutionary achievement is developing sustainable farming, which agricultural technology startup, include the adoption of has been making waves in the 17 \\ Small Enterprise \\ Jun 2023

industry since its inception. enterprise into novel local and burgeoning industry and assist in Having received substantial global markets. Agrim is primed transforming agricultural funding from investors, Agrim to make significant inroads in the practices. Their contribution goes recently announced that it has agriculture industry by beyond monetary backing as secured $10 million in Series A proliferating its advanced they offer valuable expertise and funding to further develop its solutions to a broader farmer connections that can aid Agrim in innovative products and expand population worldwide. This will scaling up. its operations. empower farmers to work with greater efficiency and Agrim has garnered significant Agrim, with its recent injection of sustainability, culminating in a investments from agricultural funding, is committed to paradigm shift that has never enterprises. These entities investing a significant amount of been witnessed before. acknowledge the necessity of resources towards research and pioneering technologies to development to enhance existing Investors augment farm productivity and technologies and introduce novel Raised a total amount of US$ 12 curtail losses. By investing in solutions to the market. The Mn in Series A, through notable Agrim, they procure access to organization primarily focuses on investors ( Kalaari Capital, avant-garde solutions that give leveraging advanced Omnivore, India Quotient, Accion them a competitive advantage in technologies such as artificial Venture Labs, and Axis Bank) are the marketplace. intelligence and machine learning primarily venture capitalists. to enable farmers to optimize These investors possess an Agrim's undertaking to tackle the crop yields while preserving vital appetite for high-risk business most pressing issues plaguing resources like water and fertilizer. ventures that have the potential farmers today has attracted the to yield considerable profits. attention of many individual The infusion of funds will Through investing in Agrim, these investors. This particular cohort accelerate Agrim's growth venture capitalists perceive an of investors has either had prior trajectory, propelling the opportunity to tap into a experience in agriculture or 18 \\ Small Enterprise \\ Jun 2023

ardently advocates for in anticipating probable waste. The company's innovative sustainable farming methods. For quandaries before they become approach to agriculture involves these investors, the chance to predicaments, allowing them to leveraging cutting-edge endorse a socially impactful make more judicious technologies such as artificial startup while simultaneously determinations concerning intelligence (AI), machine having the prospect of financial irrigation management, seed learning, and precision farming returns is enticing. selection, pestilence control, and techniques. sundry other farming Category predicaments. Agrim's agricultural methodology Agrim is a cutting-edge boasts a significant advantage, technology startup that offers Agrim, with its inventive enabling farmers to optimize innovative solutions to the approach to resolving the crop yields through data-driven agricultural industry. Founded in obstacles that the contemporary techniques. By amalgamating 2020, Agrim aims to revolutionize farming industry encounters, has data from diverse sources, such farming practices by providing rapidly emerged as a as meteorological patterns, soil advanced technological solutions transformative agent within the conditions, and plant health for precision agriculture. The sector. By capitalizing on indicators, Agrim furnishes company's vision is to empower cutting-edge technology and farmers with discernment on farmers and help them make insights driven by data analytics, augmenting crop production. informed decisions based on Agrim has effectively enabled This approach empowers farmers data-driven insights. farmers to raise their productivity to make sound decisions about while limiting waste, significantly crop planting, selecting fertilizers, Agrim offers many services and enhancing global food security. and the amount of water commodities that empower required to be employed. agriculturists to optimize crop How Agrim is Revolutionizing yields while diminishing their Agriculture Agrim's technology boasts a environmental footprint. These Agrim is a startup revolutionizing crucial benefit: the ability to encompass remote monitoring the agricultural industry by curtail expenses related to inputs systems, prognosticating weather providing farmers with like fertilizers and pesticides for tools, IoT-endowed sensors, and technological solutions that help farmers. Using precision farming prescient analytics software. Such them increase productivity, methods such as variable rate contrivances assist agriculturists reduce costs, and minimize application (VRA), Agrim permits farmers to administer these inputs only where necessary. This reduces waste and runoff and lessens the environmental impact and cost savings. The result is a farming approach that is more efficient and sustainable for all stakeholders, with the potential to revolutionize the industry as a whole. Smart Farming System Agrim's sophisticated agricultural system is a true disruptor in the farming sector. Through advanced IoT sensors, unmanned aerial vehicles, and data analysis 19 \\ Small Enterprise \\ Jun 2023

software, cultivators can now These detectors furnish farmers with the necessary data acquire real-time insights into cultivators with real-time to make judicious decisions their crops and make statistics concerning diverse about the optimal harvesting well-informed judgments to factors, including but not limited timing and most appropriate boost productivity. Additionally, to soil saturation, temperature, fertilization regimen. this mechanism facilitates the moisture, and luminosity levels. tracking of soil moisture levels, With this empirically driven temperature, and humidity, This dataset can amplify crop methodology, farmers can thereby assisting farmers in productivity and diminish water significantly enhance the yield of detecting anomalies early. wastage by ensuring accurate their crops while concurrently insight into the optimal minimizing their expenses Using drones in the intelligent timeframes and amounts for incurred by applying excessive farming system allows for more irrigation. fertilizers and untimely or belated efficient crop monitoring and harvests. management. They are equipped One of the critical benefits of with high-resolution cameras that Agrim's innovative farming As a whole, Agrim's pioneering can capture images of fields from system is the ability to predict agricultural system is different angles. This data plant diseases before they occur. well-positioned to transform the provides farmers valuable entire agrarian sector by insights, such as identifying The IoT sensors can detect early empowering farmers to generate nutrient deficiencies or pest signs of infection by monitoring a more substantial quantity of infestations. changes in plant behavior and crops using fewer resources. environmental conditions. This The data analytics software used allows farmers to take corrective Climate Change Mitigation in Agrim's intelligent farming action before the infection Agrim, a pioneering system comprehensively analyzes spreads throughout their crops. agrotechnology startup, is all the collected data from IoT endeavoring to help farmers sensors and drones. Farmers can Agrim's technology permits and counteract the adverse effects of optimize crop yields by empowers agriculturists to climate change on their crops. The predicting weather patterns and meticulously monitor each crop's company has created a adjusting irrigation schedules growth trajectory and maturation groundbreaking agricultural with this information. The cycle. system that furnishes farmers with software also tracks the progress real-time meteorological data, of crops over time, enabling This critical information equips farmers to make informed decisions about when to harvest their produce for maximum yield potential. Overall, Agrim's intelligent farming system is a promising technology to revolutionize agriculture practices worldwide. Crop Monitoring Agrim stands as a groundbreaking agricultural tech enterprise that has devised an ingenious farming mechanism involving Internet of Things (IoT) detectors that oversee the flourishing and welfare of crops. 20 \\ Small Enterprise \\ Jun 2023

Building a Global Digital Bank! BUSINESS SPENDS SIMPLIFIED Data-driven B2B spend management and embedded finance platform www.zagglezoyer.com Expense management system to digitise flexi-benefits and reimbursements www.zaggleems.comwww.zaggleems.com Seamless integration with any payment instrument Credit card for all A range of prepaid Zakey a Tap and Pay your business cards for employee key fob managed expenses flexi benefits & through a mobile app channel incentives www.founderscard.in 1750 + Active Customers, 1.7 Million + Users, www.zaggle.in 45 Million Prepaid cards used since inception

enabling them to make Precision Farming Conclusion well-informed decisions regarding Agrim's innovative farming Agrim is a revolutionary crop management. By utilizing the system has revolutionized the agricultural technology startup Agrim system, farmers can way farmers approach crop that is transforming the scrutinize weather trends and production. Farmers can optimize agricultural sector. The make appropriate alterations to every aspect of their crop company's intelligent farming their irrigation and fertilization management practices using system leverages the power of timetables. precision farming, resulting in IoT, AI, and data analytics to higher yields and improved provide farmers with real-time Agrim's system boasts a crucial profitability. Agrim's technology data about their crops, soil, and feature that enables monitoring platform collects various data weather conditions. soil moisture levels in actual time. points from sensors placed on This functionality empowers the farm to measure soil health, Agrim's Story exemplifies the farmers to steer clear of excessive weather patterns, and plant tremendous potential of or insufficient watering of their growth parameters. technology to revolutionize crops, which can result in water sectors and uplift the human wastage or damage to the plants. The platform employs condition. By presenting farmers Furthermore, the Agrim system sophisticated analytical with reasonably priced and integrates sensors that detect algorithms to scrutinize the efficacious state-of-the-art atmospheric circumstances, such copious amounts of data remedies, Agrim has as humidity and temperature provided. This results in an fundamentally altered the changes. Through the analysis of informative feedback loop for agricultural landscape and paved this data, farmers can pinpoint cultivators to optimize their crop the way for a more sustainable potential hazards to their crops planting, irrigation, fertilization, and thriving future. In the face of and undertake necessary and harvesting schedules. By emerging tribulations, Agrim and precautions beforehand. judiciously utilizing resources other nascent enterprises will such as water or fertilizers, remain at the vanguard of Agrim's innovative farming system wastage is curbed, allowing for a ingenuity, propelling has given hope to many farmers more economical approach advancement and delivering a struggling with climate change's towards higher yields. The precise constructive impact. adverse effects on crop deployment of these resources production. The system's real-time slashes expenses and augments -VISHAL weather monitoring capabilities the output. have proven invaluable in ensuring sustainable agriculture Overall, Agrim's innovative practices while minimizing technology represents a environmental harm caused by significant shift in the agricultural excessive use of resources like industry towards more efficient water and fertilizer. With and sustainable farming continued support for startups practices. Its ability to collect data like Agrim, we can build a more in real-time and provide resilient agricultural sector that actionable insights for farmers adapts and thrives despite could play a critical role in changing climatic conditions. feeding a growing global population while ensuring environmental sustainability. 22 \\ Small Enterprise \\ Jun 2023



Avinash Godkhindi, MD & CEO, Zaggle 24 \\ Small Enterprise \\ Jun 2023

FROM WALL STREET TO FINTECH FRONTIER THE INSPIRING JOURNEY OF ZAGGLE'S CEO AND THE SECRETS BEHINDTHE FINTECH REVOLUTION In a world where the conventional is being questioned, and the status quo is being disrupted, Zaggle's CEO emerges as a disruptive force breaking financial . He has redefined the bounds of what was once possible with a bold vision and an uncompromising commitment to innovation. This is the extraordinary story of Zaggle's CEO breaking free from the chains of traditional banking to go on a thrilling path to fintech success. Join us as we unravel the extraordinary tale of a disruptor who dared to question the norms and discover the groundbreaking solutions that have propelled Zaggle to the forefront of the industry. Brace yourself for a captivating exploration of how one man's audacity shattered the mold and ushered in a new era of financial empowerment. Q. Having worked at Working at Zaggle has been Zaggle, we can move quickly, established companies like transformational. The roles are pivot our strategies as needed, Citibank and Barclays, what often well-defined and structured and leverage technology to build inspired you to join Zaggle as in larger, more established unique and differentiated its CEO? Initially, how different institutions where I worked products. was the experience for you previously. On the other hand, working in a fintech company working in a fintech company like What sets Zaggle apart from with a comparatively small Zaggle, with a smaller team, other fintech companies is our volume of employees, and brings a unique dynamism where relentless focus on innovation and what, according to you, sets the one has to be adaptable, agile, customer experience. We are Fintech space apart from and innovative. The flat hierarchy constantly exploring new traditional banking? encourages open communication methods to make our products and collaboration and fosters a more user-friendly and Thank you for that question. What culture of creativity and feature-rich while ensuring they drew me to Zaggle was the entrepreneurial spirit. As a result, are secure and compliant. In opportunity to be part of a decision-making is faster, leading addition, our solutions are fast-growing fintech company to the swift execution of designed to solve real-world that makes a ground-level strategies and quicker responses problems that businesses face difference in the payments and to market changes. daily, from expense management expense management space. and employee benefits to cashless Zaggle focuses on delivering The traditional banking sector is payments and loyalty rewards. cutting-edge, technology-driven focused on offering a broad solutions for business spend range of financial services. Still, Overall, I believe fintech has the management, employee benefits, the fintech space is all about potential to revolutionize the and payment automation, and leveraging technology to deliver financial services industry by there is huge potential and innovative solutions that make life making it more inclusive, efficient, opportunity in this space. easier for businesses, customers, and customer-centric. At Zaggle, and even the common person. At we are at the forefront of this 25 \\ Small Enterprise \\ Jun 2023

transformative journey and look meeting the practical demands focusing on our customers' forward to continuing to drive and constraints of your clients? requirements and providing them innovation and growth in the with value additions that are following years. That's a great question, and it's customized and tailored to their one that we think about every day business. Q. Zaggle's products focus on at Zaggle. As a fintech company, digitizing business spending, innovation is at the heart of Zaggle's dedicated technology employee benefits, and everything we work for, and we team focuses on expanding our payment automation. However, are constantly pushing the innovative product offerings with clients' needs always change, envelope to develop the latest continuous client engagement, and they always want more. As and innovative products that effective solutions, and the CEO of a growing Fintech meet our clients' high and anticipating future demands. company, how do you balance ever-evolving needs. Zaggle's the need for innovation while approach involves continuously In addition, we recognize that innovation is not just about creating new products; it's also about improving existing ones. Therefore, we have been constantly engaging with our clients, which provides us with cross-selling and up-selling opportunities and enables us to leverage our strategic partnerships with financial institutions and merchants. We actively pursue strategic acquisitions and investments to expand our portfolio of services and ensure that our products remain relevant and competitive. Zaggle's focus on innovation, customer satisfaction, and collaboration efforts positions us well to tackle any challenges that arise and create a holistic, future-ready ecosystem that meets and exceeds our client's expectations. We develop solutions that are cutting-edge and forward-thinking, which meet the needs of our clients sustainably. Q. How do you envision Zaggle expanding its reach and impact in the future, both within India and internationally? At Zaggle, our vision is to become a leading fintech player in India 26 \\ Small Enterprise \\ Jun 2023

and internationally. Our synergistic collaborations with tedious and time-consuming expansion strategy includes established financial institutions tasks. Zaggle'sZoyer platform is organic growth and strategic and other stakeholders to create revolutionizing accounts payable acquisitions, enabling us to tap innovative solutions that bridge and payments automation by into new markets and customer the gap between traditional streamlining and digitizing the segments effectively. Working banking and fintech. Embracing entire invoice lifecycle, from towards expanding our footprint innovation and technology is receipt to approval. In addition, globally, last year we essential. the platform provides touchless commissioned a study by Aranca invoice automation, integrated of 16 international markets for An important takeaway is the payables, real-time visibility into potential expansion and have importance of agility and cash flows, and seamless shortlisted the United States, the flexibility. In fintech, there is a integration with existing systems, UK, and Brazil, each of which greater emphasis on speed and among other features. exhibits a large target audience, innovation. Another focus on the high fintech adoption, economic fintech side is the importance of The benefits of Zoyer for stability, and a large addressable customer-centricity. In traditional organizations include cost market for our offerings. banking, the focus is often on savings, enhanced efficiency, products and services, while in improved supplier engagement, Our vision for the near future is to fintech, the focus is on solving and reduced risk of errors and become the leading provider of customer problems and delivering fraud. These advantages translate digital payment and expense value. At Zaggle, we are into better financial control and management solutions in India constantly striving to put our decision-making for businesses. and worldwide. We believe our customers first, whether that focus on innovation, customer means designing intuitive and Q. In what ways does Zaggle experience, and product solutions easy-to-use products or providing contribute to the larger fintech will enable us to achieve that exceptional customer support. ecosystem in India, and how goal. does the company collaborate Q. Can you discuss how with other industry players? Q. As someone who has already Zaggle'sZoyer platform At Zaggle, we are committed to experienced the landscapes of revolutionizes accounts payable contributing to the larger fintech traditional banking and Fintech and payments automation and ecosystem in India in several Industries, can you discuss any what benefits it provides for ways. First and foremost, we are lessons or insights you've organizations? Do you also focused on driving innovation gained from your experience think, in the near future, and pushing the boundaries of working in both traditional customers would expect further what's possible in the payments banking and fintech industries, innovations and improvements and expense management space. and how have these informed from your platform? If yes, how your leadership style? do you plan to deal with it? We are constantly developing One key takeaway is the Zaggle'sZoyer platform is a new products and services importance of game-changer for accounts designed to meet the evolving customer-centricity. Traditional payable and payments needs of businesses and banks have been adapting to automation. It is a powerful, consumers, and we believe that changing customer needs, while cloud-based platform that this helps raise the bar for the fintech companies provide agile streamlines the accounts payable entire industry. Our products span and responsive solutions. Both process, from invoice capture to expense management, employee industries can learn from and payment processing. benefits, payment automation, benefit each other by leveraging and more, catering to the diverse their respective strengths. At One of the key benefits of Zoyer needs of our clients. Zaggle, we actively pursue is its ability to automate many We also actively participate in 27 \\ Small Enterprise \\ Jun 2023

industry associations and payments using their preferred redemption programs, and organizations that promote the instrument. customizable settings. growth and development of the fintech sector in India. This Furthermore, our Propel platform We are digitizing business includes organizations like the revolutionizes how businesses spending to drive growth and Payments Council of India and the handle employee and channel unlock value. We help businesses Fintech Association for Consumer rewards, offering real-time increase efficiency, reduce costs, Empowerment. dashboards, on-the-go points and make data-driven decisions. Q. Zaggle has grown into a profitable SaaS FinTech company that is digitizing business spending to drive growth and unlock value through innovative and automated workflows. Can you explain how Zaggle's innovative solutions change how businesses manage expenses and payments? Absolutely. Zaggle is revolutionizing how businesses manage their expenses and payments through our innovative solutions. Take our SAVE platform, for example; it automates employee expense management and employee flexi benefits, reducing reimbursement cycle times and processing costs. In addition, our optical character recognition technology extracts data from receipt images, creating reports automatically shared for approvals. Coupled with AI-powered fraud detection, we provide a secure, fast, and efficient business solution. Our platform, Zoyer, streamlines accounts payable and payments automation. It digitizes the entire invoice lifecycle, integrates payables and credit cards, and supports a range of payment options. As a result, businesses can achieve a real-time view of their cash flows and make 28 \\ Small Enterprise \\ Jun 2023

Zaggle empowers businesses to are the plans for expansion and customer-centric approach. The focus on what they do best while partnerships? Indian spend management we care for their expense and Our partnerships with major software and services market, payment management. banks and payment networks dominated by the software have played a pivotal role in segment with a 76% share in One of our solutions is our Zaggle's growth. These 2021, is witnessing a growing expense management platform, collaborations have enabled us to adoption of these technologies. which automates the entire integrate our solutions seamlessly The primary drivers are managing expense reporting process, from with established banking the workforce, streamlining receipt capture to reimbursement. infrastructures, resulting in vendor and procurement With our platform, employees can broader reach and improved management, and facilitating easy easily capture receipts on their operational efficiency. sourcing. We're tapping into this mobile devices. Then, our shift, incorporating AI and AI-powered engine automatically From our collaborations with machine learning into our extracts data from the receipts three banking partners, including platforms, such as our SAVE and matches them to the IndusInd Bank Limited, Yes Bank platform. In addition, we employ corresponding expense reports. Limited, and NSDL Payments AI-powered fraud detection to Bank, we have issued more than identify policy exceptions, Our payment solutions also 45 million co-branded prepaid duplicate claims, or overstated include employee benefits cards since the inception of our expenses. management, which helps business. businesses manage and track The software segment is employee benefits, such as meal We continuously build projected to grow faster than the allowances and fuel partnerships to amplify our reach services market in the 2022-27 reimbursements. This allows and enhance our service offerings. forecast period, driven by the companies to control their costs We aim to collaborate with more rising demand for process and ensure that employees industry players within India and automation technologies such as receive the benefits they are globally to stay ahead of evolving AI and machine learning. entitled to. market trends and customer needs. Additionally, we focus on Coming to the digital divide and Zaggle's solutions are designed to expanding our presence in new the uneven access to digital make it easier for businesses to geographies to serve a larger infrastructure, particularly in manage expenses and payments customer base and further emerging markets, presents a while automating tedious and cement our position as a leading challenge. However, we see this time-consuming tasks. Zaggle's player in fintech payments. as an opportunity to innovate and solutions save time, reduce errors, collaborate. Another area that we unlock new value, and create a Q. With Artificial Intelligence are focusing on is the increasing platform for operational coming into the picture rapidly complexity of regulations and excellence for all our clients. and the fintech space evolving compliance requirements and the daily, how does Zaggle plan to growing focus on data privacy Q. Zaggle has offices in seven stay competitive in the and security. We are ensuring that cities and works with several ever-changing FinTech industry, we comply with these regulations major banks, such as IndusInd, and what are the biggest and take every possible step to RBL, NSDL Payments Bank, and challenges you foresee in the protect our customers' data and YES Bank, and payment coming years? information. networks, such as RuPay, VISA, Zaggle continuously innovates and MasterCard. Can you tell us with new technologies, leveraging Overall, we believe that by staying how these partnerships have cutting-edge technologies like AI focused on innovation, customer helped Zaggle grow, and what and maintaining a experience, and compliance, we 29 \\ Small Enterprise \\ Jun 2023

can continue to enhance our Indian customers are still a bit to understand that this is not a products and services in the hesitant or unsure about the reflection of the potential of the ever-changing fintech industry acceptance of Fintech products, Indian market but of the growth and provide our customers with especially in rural areas? If you ahead. the tools they need to succeed. agree, how does Zaggle plan to resolve this problem? Zaggle is making conscious Q. For someone who has While there is a degree of efforts to simplify the user travelled multiple continents hesitancy towards fintech experience and deliver value and has worked his way across products in rural areas in India easily understood and numerous cities, do you compared to the West, it's crucial appreciated by our customers, believe, compared to the West, irrespective of their geographical or socio-economic backgrounds. We're focusing on building intuitive user interfaces, local language support, and robust customer support systems to help users easily navigate our platforms. We are also investing in educational initiatives to increase digital literacy and understanding of fintech products among the wider population. We believe that awareness and understanding are the keys to fostering trust and wider acceptance of fintech solutions. In addition, we are also working to build trust with customers by ensuring that our products and services are secure, reliable, and compliant with industry standards. We have dedicated a team of experts to focus on providing the security and integrity of our systems, and we have implemented numerous industry-leading security measures to protect our customers' data and information. 30 \\ Small Enterprise \\ Jun 2023

Powering Digital Transformation for Smart Growth through data and AI-driven insights Consolidate Activate Analyze Audience Data True Omnichannel AI, Machine Learning & Management Orchestration Deep Analytics Get a single view of Reduce the cost of customer Detailed attribution analytics - customer acquisition Campaign/Channel/Customer Sharper segmentation Seamless, automated Customer journey analytics Progressive profiling campaign operations Descriptive, Predictive & Identity management Save cost of communication Prescriptive Analytics Highly contextualized engagement Hyper personalization Key Company Highlights What we enable Placed in 892+ Launched in Global partner with for Multichannel Marketing brands Hubs for six years in a row 30% Recognized by Customer Strategic partner with Serving 200+ Data Platform Institute cost savings brands worldwide 45% incremental ROI 1.8Bn audience engaged 23Bn communications/week Our Experiences Copyright © RESULTICKS Solution Inc | [email protected]

COVER STORY | EASE OF DOING BUSINESS EASE OF DOING BUSINESS IN INDIA GLOBAL PERSPECTIVE AND THE FACTORS THAT INFLUENCE THE RANKING India has always been a sought-after destination India has great promise, but historical challenges for tourists, traders, and explorers. It is a region of have made doing business difficult. Yet, the Indian entrancing colours, engaging cultures, and government has been making efforts to foster a tremendous diversity. However, many people are climate that is more favourable to business unaware that India also has a rapidly developing investment and growth. As a result, India has economy and is a hub for entrepreneurship and improved its Ease of Doing Business ranking. India innovation. The nation is evolving into a centre of demonstrates that the nation is growing and commercial activity, providing a plethora of drawing in investors from around the globe. chances for anyone willing to take the risk. Overview of Ease of Doing Doing Business (EoDB) index. The obtaining credit, protecting Business Index index is published once a year by minority investors, paying taxes, In order to compare how simple, the World Bank Group and trading internationally, enforcing it is to establish a company in a includes data from 190 contracts, and resolving variety of nations throughout the economies. It evaluates a nation's insolvency. world, as well as how easy it is to business climate using ten do business there, an indicators, including the ease of Generally, the higher the score, international ranking has been starting a business, obtaining the easier it is to conduct established known as the Ease of electricity, registering property, business in that country. The Ease of Doing Business Index is useful 32 \\ Small Enterprise \\ Jun 2023

for politicians, investors, and has made some progress in tax rate expressed as a entrepreneurs since it gives this area; securing permission proportion of profits. India has information on the regulatory was cut from 118 to 95 days, achieved some improvement environment and identifies areas but the price increased in this area; the amount of where reforms can enhance slightly. time needed to prepare and business conditions. pay taxes has decreased from Registering Property: This 243 to 214 hours annually. As Factors that Influence the factor assesses the steps, a result, the overall tax rate Ranking costs, and time involved in has decreased from 61.3% to The Ease of Doing Business property registration. India has 58.6% of profits. ranking considers several factors advanced significantly in this that can affect a nation's business area, with the time needed Enforcing Contracts: Contract climate. Following are some of decreasing from 69 to 32 days Enforcement is a proxy for the the significant variables and and the cost decreasing from obedience of the legal system India's results in each of these 7.1% of property value to and the length of time it takes categories: 5.2%. to resolve a business issue financially. India has made Starting a Business: This Getting Credit: The Ease of great strides in this area, factor considers the steps, Obtaining Credit is a Measure decreasing the time needed costs, and minimum capital of the Reliability of Credit from 1445 to 1140 days and needed to launch a business. Reporting Systems and the the cost from 39.6% of the India has made considerable Availability of Credit. The claim value to 31.5%. strides in this area, with the credit bureau coverage in time and number of India has climbed from 43% of Trading Across Borders: This procedures needed to launch the adult population to 53%. factor considers the effort and a firm being cut from 30.5 to The legal rights index has risen money needed to move 18 days and from 13 to 10. from #6 to #8, representing products between countries. moderate development. India has made great headway Construction Permits: This in this respect, with export factor assesses the steps, Paying Taxes: This element times decreasing from 86 to costs, and time necessary to assesses the simplicity of 72 hours and import times obtain building licenses. India paying taxes and the overall 33 \\ Small Enterprise \\ Jun 2023

decreasing from 263 to 257 India received in this category Thailand, and Indonesia. hours. However, shipping increased from 25.7 to 71.4, However, India is rated higher items overseas or domestically demonstrating a significant than the other South Asian still cost a considerable improvement in the insolvency countries of Pakistan, amount. framework. Bangladesh, Nepal, and Sri Lanka. Getting Electricity: This For several years, India's Ease of India's efforts to enhance its Ease element evaluates the time, Doing Business ranking has been of Doing Business ranking have expense, and steps necessary a source of debate. Yet, the included introducing reforms and to obtain a commercial proactive initiatives taken by the initiatives. The international electricity connection. India Indian government to foster a business community has taken has made great strides in this favourable business climate in note of these efforts. With over area, as seen by the reduction recent years have begun to bear 50,000 firms, India was listed as in the time needed to obtain fruit. As a result, the World Bank the 3rd largest startup ecosystem an energy connection from Group's annual Ease of Doing in the world in 2019. India may 108 to 45 days and the cost Business ranking shows that not be as high up as some of its from 1114% of the average India's position has improved regional competitors, but it has annual income to 663% of the significantly, suggesting a shift in made great strides in recent average annual income. the country's corporate culture. years. As a result, India's position However, according to the World in the Ease of Doing Business Protecting Minority Bank Group's most recent rankings has increased each year Investors: This element rankings, India stood 63rd out of since 2014. evaluates the effectiveness of 190 nations in 2020, up from safeguards in place to protect 142nd in 2014. This progress can According to a World Bank smaller investors from be credited to the Indian survey, for the past three years directors who may utilize government's various reforms, consecutively, India has been company resources improperly such as implementing the among the top 10 countries that for their own advantage. Insolvency and Bankruptcy Code have shown the most progress. India's score in this category and process digitization. increased from 69 to 72, The advancement of India's indicating improvement. To India ranks relatively low in commercial environment has safeguard the interests of comparison to other countries positioned it as a significant minority investors and around the world. Yet, many player in the global economy. enhance corporate industrialized countries, including The significant investments made governance, the Companies the United States and Japan, are in India recently by a number of Act of 2013 incorporated a ranked lower on the list. global firms, like Amazon, number of safeguards. Singapore and New Zealand, on Walmart, and Samsung, show the the other hand, have growing interest in the market Resolving Insolvency: The continuously topped the list due potential of the nation. Moreover, time, cost, and recovery rate to their business-friendly India is poised to become an for insolvency resolution is regulations and efficient even more appealing location for evaluated by this factor. India processes. international investors in the has advanced significantly in coming years, thanks to its vast this area since the 2016's As compared to other Asian consumer market, skilled labour, Insolvency & Bankruptcy countries, Singapore, Hong Kong, and dedication to improving its Code, which has expedited the South Korea, and Taiwan all rate business climate. insolvency procedure and higher than India in terms of the increased the recovery rate for Ease of Doing business. Not only - SUMANT creditors, was introduced in is China ahead of India in the 2016. As a result, the score rankings, but so are Malaysia, 34 \\ Small Enterprise \\ Jun 2023



COVER STORY: EASE OF DOING BUSINESS EASE OF DOING BUSINESS: CHALLENGES AND THE ROAD AHEAD India's planned changes to improve its ease of The country faces several major difficulties that doing business have encountered substantial must be addressed to strengthen its business roadblocks, impeding its progress in the rankings. environment. Bureaucratic Red Tape: One addressed is outdated streamline the tax system, of the most difficult infrastructure. Insufficient several levels of taxation and challenges is bureaucratic red transportation and logistics complex laws continue to tape. Despite the systems can hinder the confound enterprises. This government's efforts to movement of products and can result in regulatory simplify registration and services, reducing the concerns and higher costs, licensing procedures, efficiency of supply chains. ultimately hurting business extensive paperwork and This might increase the cost convenience. delays in gaining permits of conducting business and remain significant barriers for impair the competitiveness of Corruption: Corruption is enterprises. This results in Indian enterprises in the another important issue for excessive administrative fees global market. India. It has long been a and delays in establishing concern. However, despite the enterprises, reducing Complex Taxation System: government's efforts to profitability. Another problem for India is address it, it continues to its complex tax structure, plague the corporate climate. Outdated Infrastructure: which may be tough for firms Corruption amplifies the cost Another issue that must be to navigate. Despite efforts to of doing business by adding 36 \\ Small Enterprise \\ Jun 2023

additional, often unlawful, applications in real time, cutting has taken initiatives to improve expenses and weakens trust the bureaucratic red tape that the country's infrastructure, between firms and the has been a key barrier. including constructing new government. This, in turn, can ports, airports, and motorways. dissuade international Another key step made by the This would not only make doing investors and harm the administration was enacting the business easier, but it will also country's ease of doing Insolvency and Bankruptcy boost the country's overall business ranking. Code, which reinforced the economic growth. framework for resolving The road forward for India's Ease insolvency cases and enforcing In the future, India will focus on of Doing Business ranking contracts. This has had a streamlining the regulatory seems positive, with the significant role in enhancing environment and lowering government implementing India's position in the \"Resolving bureaucratic barriers. We are several initiatives to overcome Insolvency\" category. also monitoring the need to the obstacles that have Furthermore, the government address the issue of corruption, hampered its progress. One has adopted several changes which continues to be a big such endeavour is the aimed at making credit more concern for firms operating in implementation of the National accessible, such as the India. The government is Single Window System, which establishment of credit agencies constantly enacting steps to aims to simplify obtaining and the construction of a improve openness and limit the permits and licenses. This consolidated collateral registry. potential for corruption. system will also allow firms to track the status of their Furthermore, the government Another crucial step is to foster 37 \\ Small Enterprise \\ Jun 2023

innovation and entrepreneurship IBC: Efficiency of Insolvency: expanded as a result of these by creating a welcoming For the Indian corporate reforms, with the GDP atmosphere for startups and environment, the increasing at an average pace small enterprises. This involves implementation of the of 7.5% between 2014 and streamlining the legislative Insolvency and Bankruptcy 2019. framework, enabling access to Act (IBC) in 2016 has also capital, and providing support changed the game. The IBC Conclusion services such as mentorship and offers a timely and effective India is a significant leader in the incubation programs. procedure for handling global economy today. Thanks insolvency cases, making it to its enormous consumer Successful Ease of Doing more straightforward for market, skilled labour Business Reforms in India companies to shut down and population, and commitment to These reforms have improved for creditors to get paid what enhancing its business India's standing on the Ease of is owed. The recovery rate of environment. Its initiatives to Doing Business Index and non-performing assets has raise the Ease of Doing Business assisted in luring foreign capital increased, according to the ranking have drawn foreign and fostering economic Ministry of Corporate Affairs, investment and turned it into a expansion. from 26.5% in 2016 to 48.3% center for innovation and in 2020 as a result of the IBC's entrepreneurship. Undoubtedly, GST: The introduction of the successful implementation. the country will grow more Goods and Services Tax (GST) desirable as it continues to in 2017 has been one of the CGTMSE: Small Business reform and prosper. most successful changes. The Credit Boost: By offering a GST made it simpler for credit guarantee to the banks, -SUMANT businesses to comply with tax the Credit Guarantee Fund laws by replacing several Trust for Micro and Small indirect taxes with a single Businesses (CGTMSE) has tax. Also, the implementation made it simpler for small of the GST has improved firms to get loans from them. government income The overall credit amount collection by lowering tax given under the CGTMSE plan evasion. The World Bank has increased from INR reports that the performance 19,156 crore in 2014–15 to of the GST has led to a 13% INR 31,966 crore in 2019–20, increase in the number of reflecting the success of this businesses registered for tax reform, according to the purposes as well as a 50% Ministry of Micro, Small and increase in the number of Medium Businesses. taxpayers. The Indian economy has 38 \\ Small Enterprise \\ Jun 2023

COVER STORY | EASE OF DOING BUSINESS INDIA STANDS AT 63 IN THE GLOBAL RANKING LIST BASED ON VARIOUS FACTORS The country's Gross Domestic Product (GDP) is er in the world. India's per capita income in 2013 currently at $2 trillion. That means India is now was US$1,900. That makes India the poorest of the the largest importer in the world. India's per capita BRIC countries. The government strives to make income in 2013 was US$1,900. That makes India the Indian economy the world's biggest in the next the poorest of the BRIC countries. few years. India's growth has been very high over the past India's economy is driven mostly by services and two decades. It is expected to grow further shortly. industry. Manufacturing contributes 13.7% of the India's Gross Domestic Product (GDP) is currently GDP, and agriculture provides 24.5%. Foreign at $2 trillion. That makes India the largest import- trade accounts for 41.4% of the total exports. India's economy is driven mostly unemployed youths in the world. technology, software by services and industry. There are around 20 million development, and other services. Manufacturing contributes unemployed young people in 13.7% of the GDP, and the country. According to the I Ease Of Starting a Business In agriculture provides 24.5%. UN, 1 out of 3 young Indians India Foreign trade accounts for 41.4% lives below the poverty line. of the total exports. - When discussing the Indian economy is service-based, current business climate in India has the largest number of concentrated on information India, it is important to note that the organizational 39 \\ Small Enterprise \\ Jun 2023

structure of businesses has flourish globally. can be recognized by either undergone a significant the service or GST transformation in recent - In light of these registration. years, opening up enormous observations, it is clear that doors of opportunity for Indian companies still have a Partnership firm newly developing and significant distance to travel - According to the expanding areas of the before they can harness their partnership deed, a economy. resources most effectively. partnership firm is a type of business organization that - There is little question - India encourages exists when two or more that the government of India establishing any form of individuals get together to played a significant part in the Business and is open to doing run the company's day-to-day transformation of Indian so. You are free to start any operations. Especially for enterprises by facilitating kind of Business you want, enterprises that run out of the access to new opportunities whether it be in the owner's house, forming a and encouraging business automotive industry, the partnership is a suitable owners to make the most of financial services industry, the alternative because it is less the opportunities presented cement industry, the gem and complicated than other to them. jewelry industry, the business structures and may healthcare industry, the be easily established.- - The entire business information technology landscape in India has been industry, the banking industry, Limited Liability Partnership redrawn due to recent the insurance industry, the - Regarding each partner's changes in India's media industry, the oil and responsibility for the macroeconomic reforms, gas industry, the real estate Partnership's debts and financial reforms, tax reforms, industry, the textile industry, obligations, a Limited Liability and market relaxation tourism, hospitality, Partnership (LLP) has policies. agriculture, the food industry, significant advantages over a or any other industry you can traditional partnership.As a - As a direct consequence, think of. The list goes on and result of this provision, the breadth of opportunities on. partners affiliated with the for conducting Business in company are shielded from India has significantly - Hence, as a company, you other partners' negligence, expanded. As a result of the can provide a product or a wrongdoing, and Made in India initiative, an service depending on the incompetence, provided increasing number of industry.On the other hand, those partners do not destroy businesses are entering the the following is a list of the Partnership. market to improve their enterprises and online operational and Business platforms that you could One Person Company (OPC) efficiency while launch in India: - The proprietor of a simultaneously establishing a business structured as a name for themselves. Sole Proprietorship Firm Person Corporation is eligible - A sole proprietorship is a for two benefits. First, by - Currently, conducting business owner in which only operating as a sole proprietor, Business in India is not a one individual is involved in and second, by working as an time-consuming or difficult its ownership and employee of the company to endeavor. Instead, it is made management. \"little traders drum up Business. The less difficult for anybody and and merchants\" refers to individual will not be able to everyone to access sources those that fall under this enjoy the benefits of equity through the programs and category. In this type of funding or offering employee initiatives, allowing the firm to enterprise, the registration 40 \\ Small Enterprise \\ Jun 2023

stock option plans. Still, they corporation is required to - The World Bank had can enjoy the other comply with these mentioned at that time that advantages of forming a requirements. India had not been able to company. successfully move its system Construction Permits – Why of construction permits Private Limited Company it's important? online.\"Over this week, the - In terms of the different representatives from the kinds of company structures - According to the study's World Bank will conduct that may be found in India, findings, a year ago, India interviews with various users the most common one is the came in position number 185 to validate our allegations”. A corporation. You will have out of the 190 countries senior official who wished to access to capital and limited assessed for obtaining a remain anonymous told ET liability, and you can attract construction permit. that significant progress had acquisitions appropriate for been made despite their plea your Business if you establish - In Mumbai and Delhi, to do so. a company. obtaining a building permit took 164 and 213 days up - During the week, - The Ministry of Corporate until the previous year. In representatives from the Affairs has the authority to those two locations, the total World Bank will make trips to require the firm to hold number of procedures that Delhi and Mumbai to collect annual meetings and submit needed to be completed feedback from the private annual returns. The reached as high as 42 and 29 sector and the government. in the previous year. 41 \\ Small Enterprise \\ Jun 2023

The Ease of Doing Business different indicators to the Hong Kong Special Index for 2017 placed India at quantify the rigor of Administrative Region, ranked 130, one spot higher than the construction regulations in a number one regarding how country's previous Ranking of country. These indicators are easy it is to deal with 130. the number of procedures, construction permits. the amount of time required, - India's rank increased in the cost, and something that - Despite this, India's four of the ten factors the the World Bank refers to as performance in the remaining previous year while declining the Business Quality Control three metrics is quite dismal in five other parameters. For Index. compared to other countries the coming year, India's such as Singapore, Australia, government has set a goal of - Although the first three the United Kingdom, and climbing 80 spots on the indicators evaluate the Hong Kong. rankings that assess the ease efficacy of the permitting with which enterprises may process for building - This becomes clearer operate in a country, placing construction, the Quality when a comparison is made it in the top 50 in the world. Control Index evaluates the between the costs incurred in This goal was established in reliability of the safeguards these various countries and order to move India into the built into the regulatory one another. According to the top 50 of all countries in the framework for building approach used by the World world. construction. Bank, the cost of obtaining a construction permit in - The study's 'Dealing with - This index contains but is Mumbai is 6.6% of the value Building Permits' section is not limited to, the quality of the warehouse project to one of the main regulatory control before, during, and be erected, while in Delhi, this areas measured. Between after construction, liability and cost is reduced to 4.2%. In 2019 and 2028, it is insurance regimes, comparison, the cost of living anticipated that the certification requirements of in Hong Kong is only 0.6%, construction industry in India professionals involved in the whereas, in the UK, it is 1.1%. will expand at an annualized construction method, etc., These costs are significantly rate of 6.6% on average. and other relevant topics. greater. These projections are from the government. - Even though India has Getting Electricity made an astonishing leap up - In addition, between April the ranks of countries that - According to the most 2000 and March 2019, issue construction permits, construction development implementing laws is still recent study published by The and construction activities difficult and uneven. accounted for roughly 6% and World Bank, India is ranked 3.5% of the total foreign - To increase investment direct investment (FDI) equity and guarantee high number 70 out of 189 inflows, respectively. In light compliance, additional of this, waterproof regulatory environment economies in terms of how construction standards reforms are required to unfavorable to Businesses are streamline and rationalize easy it is to obtain electricity. necessary to protect the existing rules and regulations general public and the in the construction industry. This is a direct result of economy's well-being. - Delhi and Mumbai score 14 out of 15 on the Business beneficial reforms that have - The World Bank gives Quality Control Index. This equal weightage to four score is equivalent to that of assisted in the ease businesses may operate in the country. - According to the survey, India rose to position 58 from 99 the previous year. This represents an astounding 29-point improvement. - According to the bank's 42 \\ Small Enterprise \\ Jun 2023

Ease of Doing Business Report this research are derived from processes into a single 2016, obtaining an electricity primary data that was operation, including the connection in India takes an acquired via customer surveys examination and installation average of 90,1 days and of more than 10,000 rural of the meter, the operations nearly five procedural steps. families and 2,000 rural firms associated with the external located in four different states connection, and the - India has advanced 12 in India: Bihar, Uttar Pradesh, connection that was places in terms of the overall Orissa, and Rajasthan. ultimately made. Ease of Doing Business, moving up to position 130 - This paper also offers - According to the World from position 142 a year insights into customers' Bank, enterprises may now earlier. This is a significant experiences under various get connected to the grid and improvement for the country. models for power delivery, get on with their commercial The largest contributor to this including public sector operations 14 days sooner improvement has been a distribution companies than they could in the past faster and more convenient (DISCOMs), solar mini-grids, process called \"Getting and private distribution - In terms of the economy Electricity.\" franchises. of the world's energy resources, India is a - According to the report, - Another of our primary significant player. Since 2000, power utilities in Delhi and goals is to streamline and energy consumption has Mumbai have shortened the speed up establishing a new more than doubled, an time required to get an connection to the electrical increase spurred skyward by a electrical connection by grid. To accomplish this goal, growing population, which enhancing the internal work the utility company in Delhi will soon be the largest in the processes. canceled an internal wiring world and a period of strong examination performed by economic expansion. - This paper results from a the Electrical Inspectors. collaboration between Smart - The year 2019 marked Power India (SPI), a subsidiary - As a result, there is now the achievement of nearly of The Rockefeller just one inspection performed universal household access to Foundation, and the Initiative for the same reason instead electricity, which means that for Sustainable Energy Policy of two. According to the more than 900 million citizens (ISEP), housed inside the report, the utility company have obtained an electrical Johns Hopkins School of rolled all of the preparations connection in fewer than 20 Advanced International for the external connection years. Studies. The report into a single process together summarizes what was learned with the actual turn-on of the - The ongoing process of regarding customer demand power. urbanization and and access to electricity. industrialization in India will - In addition, it was place enormous demands on - This research makes mentioned that the utilities in the country's energy industry several important Mumbai shortened the and its policymakers. In terms contributions, one of which is procedures and cut down the of energy consumption per analyzing the baseline time required to connect to capita, the United States uses demand for electricity at a the electrical supply by well under half of what is village level, which considers enhancing the internal work considered the average for electricity utilization for processes and coordinating the rest of the world. productive purposes. their efforts better. - Furthermore, there are - The findings presented in - It consolidated several significant differences in 43 \\ Small Enterprise \\ Jun 2023

energy consumption as well economic and social urban areas. On the other as the quality of service development. However, even hand, according to the Census between states and between tho7percentnt of a of 2011, more than 10 million rural and urban areas. household's assets are kept housing units are currently Consumers in India have being and housing, there is an unoccupied. several primary concerns insufficient amount of data regarding the energy supply, and studies on people's - Several million cases are the most important of which property rights in India. This already waiting to be decided are its affordability and presents a perplexing in Indian courts, which dependability. challenge for us. indicates that the number of ongoing land disputes is also Registering Property - On the one hand, the quite big. Land disputes - Protecting individuals' government has set a goal to account for almost a quarter legal rights to their property provide 18-20 million of all cases heard and is essential to any nation's affordable housing units in determined by the Supreme 44 \\ Small Enterprise \\ Jun 2023

Court, with thirty percent revenue collected by colonial garner higher respect from focusing on governments came from the communities in which acquisition-related land levies placed on various forms they live. But, this necessitates conflicts. of agricultural production. As upending some deeply time went on, and as this ingrained social norms, which - These issues result in source of money became less may be tough for charitable insecure tenure for a large significant, less attention was organizations and donors. population, particularly the paid to rural land poor and vulnerable, administration. - Land and labor, two of providing complicated the most important challenges for good - We did not invest in components in production, governance. developing robust land have not been subject to any management systems as our changes even though India - It affects not just the cities expanded in an has implemented economic effectiveness of our judicial uncontrolled manner, so they reforms in many different system but also our capability expanded without our areas of the country's of luring investments. In knowledge. On a political economy. In our day-to-day contrast to India's overall level, land and housing are lives, we have been subjected Ranking of 63 in the 2020 enormously important assets to the repercussions of a land index, the country's \"Ease of that, when inadequately administration system that Doing Business Rankings\" governed, invite corruption has been dysfunctional for place it 156th on the \"Ease of and violence. decades. property registration.\" This Ranking comes from the - In addition, land and - Given that property World Bank's \"Ease of Doing housing are frequently disputes are apparently at the Business\" rankings. imbued with profound center of as much as 66 personal significance for percent of all civil lawsuits in - These challenges must individuals. In many instances, India, it is not an access to these things is overstatement to assert that receive adequate attention determined by each and every Indian family long-established norms and has been involved in at least from policymakers, given the practices handed down one property dispute. through the generations. present rate of population - These issues have been - For example, patriarchal brought to light as a direct expansion as well as the norms frequently prevent result of the pandemic as a women from owning direct result of the severity of increasing competition for Property, even though the impact that the COVID-19 research has shown that epidemic has had on limited resources such as families with women who own individuals living in informal Property have better health, settlements. These individuals land. - Mostly, nutrition, and education live in an environment where indicators. Patriarchal norms concerns of inadequate land governance and property often prevent women from sanitation and housing are owning Property. In a similar fostered by a lack of tenure rights have been neglected in vein when members of security. historically marginalized India's policy research and groups can purchase their - The absence of secure own Property, they enjoy access to land and housing development activities, improved food security and despite the gravity and complication of the problem they pose. This phenomenon can be attributed to a wide range of causes, some of which are political in nature while others have historical underpinnings. - Throughout history, a significant portion of the 45 \\ Small Enterprise \\ Jun 2023

rights is central to most of our institutions and new financial only 7% in 2020–21. contemporary social and institutions just getting their economic difficulties. These feet wet are concentrating on - It is anticipated that the challenges may be broken expanding their customer growth rate will improve down into three categories: bases by making it easier for marginally in FY21–22; housing rights, land rights, unbanked and underserved nevertheless, it is anticipated and housing rights. populations to obtain credit. that it will remain slow due to the restrictions on card Getting Credit - The Business of providing issuing placed by some - Even though the Indian credit cards in India significant banks and economy is one of the most payment networks. dynamically expanding in the - The market for debit world, there remains a large cards has traditionally been - Similarly, credit card access deficit to formal credit, very strong in India. This particularly in comparison to narrative, however, has been transactions grew at a CAGR the credit markets of other significantly altered due to of 16% up until 2019–20, but industrialized nations. Banks the rise in the number of then they dropped back down and other financial credit cards issued over the institutions (FIs) strive to past decade, which are now to the levels they were at in bridge this gap by providing being utilized prominently. 2018–19 in FY20–21, as shown new payment products and in the figure on the right. The instruments that simplify - Its expansion is further getting formal credit. In the driven by the different growth rate was quite slow past credit was limited to products and services given specific loans, such as by FIs, and such items are during the first half of the mortgages, car loans, and being used more frequently fiscal year 2020–21, but it personal loans. by clients, particularly the picked up speed towards the millennial group. - On the other hand, year's second half. financial institutions (FIs) and - In the past four years, the banks have recently moved issue of credit cards in India - One of India's most their attention toward has increased at a rate widely used financial instruments such as credit equivalent to a compound transaction methods is the cards, buy now, pay later annual growth rate (CAGR) of Unified Payments Interface or (BNPL), and credit installment 20%. This represents a huge UPI. Compared to debit or payments (EMIs). New players increase. credit cards, the number of in the FinTech industry have transactions made using UPI caused a disruption in the - The number of people was significantly higher in market by presenting with credit cards in March 2020–21. consumers with goods and 2017 was 29 million, but by services that are novel and March 2021, that number had - At the same, the total cutting-edge. climbed to 62 million1. It has value of transactions recorded continued to expand, with a for each of the three different - The use of credit cards, gain of 26% in 2019 and 23% ways of payment was not BNPL, and credit EMIs has in 2020, respectively. Despite significantly different. increased dramatically, and this, the COVID-19 pandemic there has been a slowed the growth pace of Protecting Minority corresponding rise in the India's credit card business, number of cards issued. which expanded the sector by Investors - Although it - Established banking has made great progress in the past two years, India is still ranked 77th since many regions are behind in building an environment conducive to Business. Nonetheless, there is still one category in which the country is consistently 46 \\ Small Enterprise \\ Jun 2023

ranked among the top 10 directors for unethical system has made the process countries, even the fallings in behavior. the rankings this year. - more efficient. The reduction Safeguarding Minority - The applications for the Investors is one of the 10 value-added tax and the in the number of steps characteristics the World Bank profession tax have been uses to evaluate a combined in Mumbai, which necessary to secure a building 190-nation's Ease of Doing has the added benefit of Business, and India has left making it quicker to start a permit made it possible for 183 nations behind this year. firm. Secondly, there was a reduction in the number of this transformation to take - This criterion considers procedures and time required three aspects of investor to obtain a building permit as place. - Access to protection: the openness of a result of the implementation business dealings, the of an online system that has credit has improved as a consequences of engaging in streamlined the process at the self-dealing, and the capacity Municipality of New Delhi and result of changes made to the of shareholders to bring legal the Municipality of Greater action against officers and Mumbai. This reduction was rules governing the priority of due to the fact that the online 47 \\ Small Enterprise \\ Jun 2023 secured creditors that apply outside of the context of reorganization proceedings and the adoption of a new law on insolvency that establishes a time limit and clear grounds for relief from the automatic stay that applies to secured creditors

during reorganization in contractual relationships. 5.78 crore taxpayers take proceedings. advantage of the exemptions; - In addition, implementing more specifically, roughly 5.3 - According to the report, an IBC included the crore taxpayers take the minority investor establishment of a advantage of the exclusions safeguards were improved by reorganization procedure for to claim Rs 2 lakh or fewer increasing the number of corporate debtors and deductions. redressal routes that might be making it easier for them to pursued if interested parties continue operating their - Considering this, a engaged in transactions that businesses throughout the streamlined tax system were detrimental to one insolvency process, making it offering lower rates is an another. simpler to resolve insolvency attractive alternative for a cases. substantial segment of - The need for taxpayers, particularly the contributions to be made Paying Taxes younger population entering electronically to the - The personal income tax the labor market. This is employees' provident fund system will be simplified for especially true for the and the introduction of incomes up to Rs. 15 lacks, a younger population. administrative measures to taxpayer's charter will be ease compliance with the created, and the taxpayer's - This is anticipated to corporate income tax interface with the tax encourage a higher degree of contributed to simplifying the bureaucracy will be reduced compliance, eventually process of making tax according to the proposed boosting tax collections. payments. changes to the budget. This is Introducing pre-filled an encouraging step toward income-tax forms will make - According to the easier compliance, which filing returns a chore that is research, the time it takes to could result in a wider tax both less burdensome and comply with import border base. more affordable. regulations in Mumbai has been cut down significantly - Taxpayers with an annual - Those whose income from 283 days the year before income between 5 and 15 flows are relatively to 265 days today. This has lakh rupees will soon be able straightforward will no longer helped to facilitate to pay taxes at a reduced rate need to rely on the assistance cross-border commerce. if they are willing to renounce of specialists or chartered various tax exemptions. Those accountants. The effort being - According to what was who choose to do so will have made to limit the amount of found, export and import this option. interaction with the tax border compliance costs were bureaucracy is another step in lowered in Delhi and Mumbai - The government aims to the right direction toward by eliminating merchant transition taxpayers to a tax enhancing compliance. overtime fees and increasing system with fewer exemptions electronic and mobile but lower overall rates. This - When considering how platforms. This was done. helps explain the \"nudge,\" easy it is to live and conduct which involves eliminating 70 Business in a given location, - Establishing the National of the 120 exemption one essential factor is how Judicial Data Grid, which categories that taxpayers can simple it is to pay taxes. The allows for compiling case use to reduce the amount of initiatives that were management reports on income tax they owe. announced in this budget regional courts, simplified the represent an effort that is process of enforcing - Approximately 10% of the being made in this regard. agreements between parties 48 \\ Small Enterprise \\ Jun 2023

- Richard Thaler, an corporate income tax is quick various ministries, most American economist who won and easy, taking only 45 notably customs, under the the Nobel Prize in Economics hours. This is by international purview of the Central Board in 2018, would be pleased best practices. Overall, the of Indirect Taxes, or CBIC. with this suggestion. time spent on VAT, CENVAT, According to Thaler, if you and central sales tax - According to the most want people to do something, compliance is 105 hours, recent UN Global Survey on you should make it as simple which is quite a lot. Digital and Sustainable Trade as possible. Facilitation, India's Ranking - It takes 91 hours per year improved from 78.49% in - For corporate income tax to comply with EPF and 2019 to 90.32% in 2021. This and value-added tax, the employees' insurance taxes, represents a significant jump number of payments in India which is more than twice the from the previous year's score is consistent with global best time needed to deal with of 78.49%. The poll is practices thanks to the corporate income tax. It takes conducted every other year widespread use of electronic 241 hours to comply, and focuses on the many filing at both the central and significantly longer than the steps countries have state tax administration levels. OECD average of 163 hours. implemented to make it The time spent on GST easier to do Business. - If electronic filing is compliance is expected to common, the 'Doing Business' decrease once the GST is fully - \"According to the most report counts multiple implemented. recent Global Survey on payments as transactions. Digital and Sustainable Trade Nonetheless, 12 EPF - The hours spent Facilitation conducted by the payments (one per month) complying with GST and labor United Nations Economic and and 4 insurance payments taxes must be reduced. Hence Social Commission for Asia (one per year) must be made an organized effort is Pacific (UNESCAP), India to satisfy the labor taxes. necessary. The EPFO's 'paying received a score of 90.32 taxes' indication would percent. This is being hailed - However, if all of these benefit from a decrease in the as an impressive increase payments were done online, number of payments required from 78.49% in 2019, the total number of payments and the time needed to according to the Survey would be considered one, comply. The Labor Ministry's \"according to a statement which would be a tremendous assistance is required by the released by the Ministry of improvement; the number of Ministry of Finance to make Finance of the Union on payments would drop to 10, this happen. Friday. which is lower than the OECD average. Cross-Border Trading - Every two years, the - According to a United United Nations Economic and - The number of hours Nations survey that followed Social Commission for Asia required for compliance is 143 nations on major trade and the Pacific carries out a another area in which India facilitation criteria over two survey referred to as the does poorly. According to the years, India has achieved Global Survey on Digital and most widely used tax systems tremendous progress in its Sustainable Trade Facilitation. worldwide, this also applies to Ranking in cross-border trade. This study is conducted over the three most important This survey was conducted in the course of two years. In the taxes: corporate income tax, India. survey that will be conducted value-added tax, and social in 2021, there will be an insurance payments. - This progress was made evaluation of the 58 trade possible by implementing facilitation measures included - Compliance with the several reforms carried out by 49 \\ Small Enterprise \\ Jun 2023

in the Trade Facilitation transparency index and a raise India's rating on this Agreement of the WTO. score of sixty-six percent on index since it was introduced. the \"women in trade\" - The 2021 survey noted component \"it claimed. - As a result of the many India's considerable score reforms that have taken place increase on all five main - CBIC has reportedly been in India over the past two metrics after evaluating 143 at the forefront of a number years, the country's overall economies worldwide. The of innovative reforms that Ranking has improved level of transparency was have been carried out under significantly, moving it up to increased to 100 percent in the auspices of \"Turant\" 100th place, and India has 2021, up from 93.33 percent Customs, as stated in a made the most progress of in 2019, while the number of statement that was issued by any country in the world formalities increased to 95.83 the Ministry of Finance. These about this index. percent in 2021, up from 87.5 reforms are intended to usher percent in 2019. The in a faceless, paperless, and - Despite this, India has institutional arrangement and contactless customs system. aspirations to continue cooperation level increased to advancing to become one of 88.89 percent in 2021, up - According to what was the top 50 countries. How from 66.67 percent in 2019. indicated in the report, this exactly is that going to has directly impacted the become a reality? - Additional factors such as improvement in the UNESCAP paperless trade improved to rankings on digital and - One of the complex 96.3% in 2021 from 81.48 % in sustainable trade facilitation. aspects historically 2019, while cross-border contributing to India's lagging paperless trade improved to - In addition, during the behind other countries is 66.67 % in 2021 from 55.56 % COVID-19 pandemic, customs whether contracts can be in 2019. agencies have reportedly legally enforced. India has made every effort to expedite performed poorly in this index - According to the survey the importation of over the past several years. findings, India has the highest COVID-related goods, such as economic growth rate oxygen-related equipment, - In what specific ways compared to the south and life-saving drugs, and does India's legal system fail southwest Asia region (63.12 vaccines, according to the to uphold its obligations percent) and the Asia Pacific report. under contracts? In this index, region (65.85 percent).\"It has India ranked 186th out of 189 been discovered that India's - A solitary window that is countries when it was last overall score is higher than reserved only for use. It was measured a few years ago. the scores of several countries stated that a COVID-19 24x7 Timor-Leste, Angola, and that are members of the helpdesk for EXIM trade had Bangladesh were the three Organization for Economic been formed on the website countries that performed Cooperation and of the CBIC to allow the even worse than India. Development (OECD), such as speedy resolution of any France, the United Kingdom, issues experienced by - In previous years, it has Canada, Norway, and Finland, importers. achieved a slightly higher amongst others, and India's ranking. In 2018, our position overall score is higher than Enforcing Contracts in the global rankings was the average score of the - The Modi government 164th. The only category in European Union (EU). India highlighted the ease of doing which we performed worse received a perfect score of business index as a primary was obtaining building one hundred percent on the barometer of its performance. permits. Efforts have been made to 50 \\ Small Enterprise \\ Jun 2023