In his post, Rai recounted that when he initially contacted a vendor to assist with the licensing process, he was informed of "out-of-pocket" expenses amounting to ₹70,000. Opting to apply for the license independently, he was subsequently asked for a ₹1 lakh bribe. Expressing his frustration, Rai referred to this as the "dark side of Make in India" and questioned the feasibility of the government's 'Ease of Doing Business' initiative under such circumstances.
The social media post garnered significant attention, accumulating over 400,000 views. In response to the widespread attention, a senior official from the Ministry of Commerce reached out to Rai, promising to investigate the matter. Rai updated his followers, expressing optimism that the issue would be resolved promptly.
This incident has sparked a broader conversation about the prevalence of corruption and bureaucratic hurdles in India's business environment. A survey conducted by LocalCircles revealed that 66% of Indian businesses admitted to paying bribes in the past year to expedite processes or secure favorable outcomes. Of these, 54% felt coerced into paying, while 46% did so voluntarily to ensure timely processing. The survey highlighted that, despite digitization efforts, bribery remains entrenched, particularly in dealings with government agencies.
Other entrepreneurs have shared similar experiences. Manish Sharma, an entrepreneur, disclosed that his company was asked for ₹2 lakh for a factory relocation license. Upon refusal, he faced legal summons under the Code of Criminal Procedure. Such accounts underscore the systemic nature of these challenges, which can deter potential investors and stifle economic growth.
The Indian government has launched several initiatives aimed at improving the business climate, including the 'Make in India' campaign and efforts to enhance the country's ranking in the World Bank's Ease of Doing Business index. While these initiatives have led to some improvements, persistent corruption and red tape continue to pose significant obstacles for entrepreneurs and businesses operating in the country.