Bangalore least business-friendly destination

Bangalore least business-friendly destination

The report — prepared after taking into account various business parameters like economic condition, constructing warehouses, tax structure, obtaining permissions, registering properties and closing business in 17 cities across the country —  puts Bangalore in the 13th position and Kolkata last.

Karnataka’s capital, which became the world’s envy when the IT boom happened almost a decade ago, is today the worst city when it comes to starting an industry — it occupies the last position! From the perspective of the IFC and the World Bank at least, it seems that the Bangalore bubble has burst.

According to the report, titled ‘Doing Business In India 2009’, Ludhiana is the most business-friendly city, followed by Hyderabad and Bhubaneshwar. Delhi, Mumbai and Chennai are in 6th, 10th and 15th positions, respectively, in overall business-friendliness.

Starting a business is possible in the shortest time in Mumbai and UP’s Noida — in just 30 days — while in cost terms, it is least expensive in Patna. In Bangalore, it takes 40 days to start business by obtaining all kinds of permissions while in Mumbai it needs just 30 days. Hyderabad takes 33 days and Chennai takes 34 to start an industry.

Interestingly, starting an industry in New Zealand is astonishingly easy – in a day.

But it is not bad news all through for Bangalore. It is easier to obtain permits to build a warehouse and connect it to utilities in the city, Gurgoan and Chennai. According to the report, the same cannot be expected in Kolkota and Mumbai. In this segment, Bangalore is one of the better places across the world, ranking 72 out of 181.

The report says that overall it is easier to start and operate business in India than it was three years ago in many larger cities of the country.  However, compared to economies worldwide, cities in India lag when it comes to closing businesses and paying taxes, said the report, which shows how government regulations and practices ease or constrain business activities. 

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