Interview with Mr. Arun Kr Jain, Vice President, UP Chamber of Commerce

Mr. Arun Kr. Jain is a first generation entrepreneur apart from being the Vice President of the Uttar Pradesh Chamber of Commerce. He is in the business of applied materials and development of dome structures. His company has installed dome structures in a large number of cities in India. I decided to quiz him on issues related to conduciveness of doing business in Uttar Pradesh.

Here’s what I rememeber

me: What is the role of Chamber of Commerce in India ?

Mr. Jain: The CCI acts as an intermediate between the government and various agencies which are into providing land, development of land, development of industries, financial bodies and other related things. We try to solve problems faced by them. The Chamber also takes decisions to reform and suggest the government as to what changes are required for the development of the state. For an entrepreneur, CCI puts you across various bodies at different stages of development, provides information, gives an idea about the procedures and solves bottlenecks if any.

me: What is the general mindset of foreign investors regarding Uttar Pradesh ?

Mr. Jain: They are NOT happy. There is a lot of red tapism and even sanctions. Sometimes the systems here are not responsive. They expect the system to deliver efficiently in the shortest time, which does not happen here. The number of procedures also needs to be simplified. For certain purposes there are as many as 139 forms which needs to be filled for getting the work done.

me: Is the Chamber of Commerce influential enough in negotiating with the government to drive reforms ?

Mr. Jain: It is not influential as it can be. Most of the members like me are involved in their own businesses. Its only when something big happens, do organizations like ours really rise up and force the government to drive reforms. Today, if we have to change the system we need a lot of individual initiative to drive reforms. The best way for growth is to put pressure on the political system to perform.

me: What do you suggest for the India growth story ?

Mr. Jain: Reforms is the way to go. Unfortunately, the second generation of reforms did not come since 1991-92. Infact, this is the time for 3rd generation of reforms. We can’t just live in the age of 1991 which was almost 20 years back. Entrepreneurs need to be nurtured. There has to be a support system for them. Whenever the government is involved, it is usually the large enterprises who benefit. Small and Medium enterprises do not benefit as much. I believe we have to device a system where politicians are accountable. As an example, I know of a wonderful bridge project which got sanctioned for 300 crores. The same project was later done by a major construction company for 36 crores. So someone has to be responsible for bad decision making. Afterall, its the tax payers money.

P.S. I was able to take only a short interview of his as we travelled to his place in a car. He was full of disdain for the government of UP and its policies and leaders. I have left the issues related to Mayawati and her government out of the interview.