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Modi’s Plans for Indian Entrepreneurs Not working on the Ground as young Indians Prefer Foreign Countries To Set Up Shop

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8 years ago

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Modi's Plans for Indian Entrepreneurs Not working on the Ground as young Indians Prefer Foreign Countries To Set Up Shop

~ By  Rashme Sehgal and Shubh Arora

India has been rated a great startup destination. Its rankings in the ease of doing business have risen to 100th position in the recently released World Bank ease of doing business index for 2017.

How do young entrepreneurs feel about this rise in rankings? Is it easier to start a business enterprise in India today? Most entrepreneurs feel that while the situation has eased from some years ago, there are still a number of roadblocks which need to be cleared.

Access to finance is one of them. Bureaucratic red tape and an undue dependence on government infrastructure are other problems that startups face. The younger breed of businessmen still believe there are hurdles in India which make them choose to set up shop in foreign countries.

Take the case of two entrepreneurs, Jignesh Mehtani and Suresh Accha, both Gujaratis working out of Chennai. Two years ago, they decided to shift base to  Congo in Africa and are now doing successful businesses in chemicals and coffee trading. Suresh Accha has started an export house called Ganpati Exports which is exporting coffee to several countries including India. Jignesh Mehtani has also started AR Enterprises in Niger Congo and is trading in chemicals and coffee. His turnover has tripled in the past two years.

Accha says, “While we are bullish on the Indian market’s potential, we feel that there has to be an easing of bureaucracy and regulations for young people to operate out of India, we feel entrepreneurs must have easy access to bank loans to set up their companies.”

Accha said the story of Indians in Africa is one of a private entrepreneurship story. “Indian companies do risk assessment in a very systematic manner unlike the Chinese who jump into projects and complete it very fast. But even so, Indians here have a presence in the fields of telecom, education, agriculture and the car industry” said Accha.

Pradeep Khetwal, an IT, Networking and Hardware Consultant, started his own company, VGS IT Solutions,  in India with high hopes  but soon became disillusioned. Moving continents was not easy but  Khetwal was disillusioned with the lack of skilled personnel in his field in India.

“Despite hiring ITI graduates in India, these students lacked exposure to the new technologies. They are being trained with tools that are 20-30 years old,” Khetwal said.

Khetwal also believes, “The level of skilled personnel available in India remains low as compared to China. Chinese diploma holders are specialized in real time job skills compared to the theoretical training our students are receiving in India,” he said.

He regretted that most of the IT products including wireless access points, routers, switches being used in India are being imported from China and being only branded in India by both Indian and MNC companies. He said, “Even today, there is little chip level development taking place and though we have dependency in this field for the last 30 years, we have failed to set up chip making machines in India.”

Khetwal finds the work environment far more conducive in Africa. He has started his own company in Nairobi in Kenya under the same title of VGS IT solutions. Khetwal agrees that Africa is no manufacturing hub but it is an expanding market and there is much less competition here than in India.

He said, “The pricing here is done in US dollars and we can tap a skilled labour force from around the world which makes the work environment much more conducive.”

 

Subin Subramanian was working in Kerala as a professional when he decided to move to Doha in the Middle East. Said Subramaninan, ` I  opened a large store called Sarfaraz Supermarket in an Ezdan Shopping market in Doha, with an initial investment of 1,20,000/- Qatari Riyal (  equivalent to approx. 20 lakh rupees).

Doha has been divided into Ezdans marked  from 1-80 and each Ezdan  has a local shopping centre for residents. He said, “The work environment here is very good with much less restrictions compared to India. The spending capacity of residents is also very high.”

Jagdeep Malhotra, an engineer with a degree from the Delhi College of Engineering, is shuttling between China and India. His company Sinogate has specialised in supplying Indian hotels and restaurants with a wide range of furniture and equipment.

Malhotra also regrets that China has forged ahead in the field of providing specialised equipment for hotels.

Malhotra said, “Chinese factories are more automated and their machines tools are very good. Indians factories are not able to compete. China has moved into the area of bulk supplies and therefore offers a lot of options for Indian hotel owners.”

He also believes, “China has moved forward in this  field because both their managerial and engineering staff are more quality. To cite one example, we have poor quality CNC machines. Our engineering institutes are producing thousands of graduates but their learning is based on mastering traditional subjects. Most of them, to cite one example, have little knowledge of repairing latest LED/LCD TV’s and basic tools like multi-meters which are consequently not being available for testing,” he added.

Even though China has an increasing presence in New Zealand, 23-year old Mohit Gehlot has managed to create his own niche in this country.

Realising that working in India was extremely challenging, he decided to move to Warkworth close to Auckland where he opened a Super Liquor Store. The store has turned out to be a success and as he said, “I am now planning to expand my business activity by opening more Liquor stores and also Gas Stations.”

Gehlot added, “Doing business in New Zealand is simple and hassle free compared to India. Finance from banks is easily available. No wonder New Zealand enjoys the number one slot among the world in Ease of Doing Business Index for 2017.”

Many Indians prefer to work out of Singapore because it allows them access to emerging markets such as Thailand, Philippines and Vietnam. Having a company in Singapore allows them to be considered a global company which increases its brand value and gives it greater credibility.  Singapore’s taxations caps at 17 per cent is more attractive compared to 30 per cent taxation at India.

Prime Minister Narendra Modi has given a great deal of emphasis to encouraging a spirit of entrepreneurship amongst the young Indians. In fact, this has been one of the key thrust areas in his governance objectives. But unless a more encouraging ecosystem is created in India, its best and brightest talent will continue to move to greener pastures  abroad.

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Xbox announces 3,200 layoffs as Asha Sharma outlines major restructuring plan

Xbox has announced plans to lay off 3,200 employees over the next year while introducing a major restructuring programme that includes management changes, studio restructuring and cost-cutting measures.

Published

3 weeks ago

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July 7, 2026

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XBOX layoff

Xbox has announced plans to reduce its workforce by 3,200 employees, representing around 20 per cent of its total staff, over the coming year as part of a broader restructuring programme linked to Microsoft’s increased investment in artificial intelligence.

According to an email shared with employees by Asha Sharma, the company will begin the process immediately, with 1,600 employees leaving on Monday, while the remaining job reductions will take place during FY27. The company also plans to divest four gaming studios and is preparing to separate from another.

Business reset planned amid financial challenges

In her message to employees, Sharma said the company’s current financial position required significant changes, stating that Xbox’s business was operating at substantially lower margins than comparable platform and publishing companies.

She said the layoffs were not a reflection of employees’ commitment or abilities but were part of a wider effort to strengthen the company’s long-term business.

The workforce reduction comes as Microsoft continues implementing AI-focused cost-cutting measures across its operations. Overall, the technology company is reportedly cutting 4,800 jobs, with Xbox accounting for the largest share.

Sharma also described the gaming sector as experiencing one of its most challenging hardware periods and said the company needed to “reset Xbox” to improve its future performance.

Company to streamline operations and reduce management layers

As part of the restructuring strategy, Xbox plans to simplify its organisational structure, revise its content portfolio and improve platform operations.

According to Sharma, the company currently loses 64 cents for every dollar invested annually, making operational efficiency a key priority.

She said Xbox would increasingly support independent game creators by offering open development tools and broader audience access.

The restructuring will also see Mojang and King report directly to Sharma. She said both studios have evolved into major gaming platforms with large monthly active player bases and will play a central role in Xbox’s future strategy.

To improve decision-making, the company plans to significantly reduce its management hierarchy. Sharma said some departments currently have as many as 14 management layers, which slow down operations. Xbox aims to reduce this to no more than five layers, and in some cases, only three.

The company will also reduce vendor spending by 50 per cent as part of its cost-saving measures.

Helen Chiang promoted to Chief Operating Officer

Alongside the restructuring announcement, Sharma confirmed the promotion of Helen Chiang to the newly created position of Chief Operating Officer.

Chiang will oversee profit and loss responsibilities across Xbox’s content, hardware, platform and services divisions while reporting directly to Sharma.

According to Sharma, the new operating structure is intended to improve investment decisions, strengthen accountability and better integrate the company’s various business units.

Despite the ongoing restructuring and job cuts, Sharma said Xbox remains committed to long-term growth and plans to continue investing heavily in the business, while placing greater emphasis on disciplined spending and strategic priorities.

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India News

Bank holiday today: Are banks open or closed on June 29? Here’s what RBI calendar says

Banks in Himachal Pradesh and Mizoram will remain closed on June 29, 2026, due to regional holidays, while banking operations will continue normally in most other states.

Published

4 weeks ago

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June 29, 2026

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Bank Holidays

As June comes to an end, many customers are wondering whether banks across the country are open on June 29, 2026. According to the Reserve Bank of India’s (RBI) holiday calendar, bank operations will not be affected nationwide, but branches in some states will remain closed due to local holidays.

Banks closed in these states on June 29

Banks will remain shut in Himachal Pradesh on Monday, June 29, on account of Sant Guru Kabir Jayanti. In addition, bank branches in Mizoram will remain closed to observe Remna Ni, a regional public holiday.

However, bank branches in most other states and Union Territories are expected to function normally as June 29 is not a nationwide banking holiday.

Will online banking services remain available?

Even when physical branches remain closed, customers can continue using digital banking facilities. Services such as internet banking, mobile banking, UPI transactions, ATM withdrawals and cash deposits at ATMs will remain operational.

Customers planning to visit a bank branch are advised to check with their local branch beforehand, as holiday schedules may vary depending on the state and local observances.

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Union Budget 2026 highlights: Nirmala Sitharaman Raises Capex to Rs 12.2 Lakh Cr, West Bengal Gets Major Allocation

Finance Minister Nirmala Sitharaman is presenting the Union Budget 2026 in Parliament today. Follow this space for live updates, key announcements, and policy insights.

Published

6 months ago

on

February 1, 2026

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Finance Minister Nirmala Sitharaman arrives to present Union Budget 2026

Finance Minister Nirmala Sitharaman will shortly present the Union Budget 2026 in the Lok Sabha, marking her ninth consecutive Budget. The annual financial statement is expected to outline the government’s policy priorities, reform agenda and spending plans for the coming year. Stay tuned for live updates, key announcements and immediate reactions as the Budget speech unfolds.

Finance Minister Nirmala Sitharaman tabled her ninth Union Budget today, beginning her speech at 11 am.

Nirmala Sitharaman is set to present her ninth Union Budget today, with the finance minister scheduled to begin her speech at 11 am.

Budget 2026 live updates: Presenting the Union Budget for 2026–27, Finance Minister Nirmala Sitharaman said the occasion coincided with Magh Purnima and the birth anniversary of Guru Ravidas. She noted that over the past 12 years, India’s economic journey has been defined by stability, fiscal discipline, sustained growth and moderate inflation.

The budgeted fiscal deficit for fiscal 2026 is estimated at 4.4 per cent of gross domestic product (GDP)

Planned capital expenditure this fiscal year Rs 11.2 lakh crore

Rare earth corrdiors in Odisha and Kerala

Hi-tech tool rooms to be set up by PSUs

Construction equipment scheme to be launched

Container manufacturing scheme for Rs 10,000 crore over 5 years

Rs 10,000 crore SME Growth Fund

Semi-conductor mission to get Rs 40,000 crore

Rs 12.2 lakh crores for infrastructure development

Dedicated RITES to repurpose land of Central PSUs

20 new waterways over next 5 years to be connected

7 high-speed corridors on rail

High-level committee on banking for next phase of Viksit Bharat

Capital expenditure hike of to ₹12.2 lakh crore in Budget 2026, with West Bengal receiving a significant share of allocations.

Mahatma Gandhi Gram Swaraj Initiative aimed at boosting the khadi, handloom, and handicrafts sectors.

High-speed rail corridors: Mumbai-Pune, Pune-Bengaluru, Hyderabad-Bengaluru, Chennai-Bengaluru, Delhi-Varanasi, Varanasi-Siliguri, Pune-Hyderabad

Five university campuses to be established near industrial corridors

Lakpati Didi program expanded in Budget 2026 to reach more beneficiaries across India.

Fiscal deficit for FY26 revised to 4.4%; Budget Estimate for FY27 set at 4.3%.

TCS on overseas tour packages cut to 2% to ease travel costs

Tax holiday to foreign companies that provide cloud services by setting up data centres in India till 2047

17 cancer drugs exempted from import duties

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