Hong Kong states that India needs to facilitate assistance in ease of doing business. The principal economist at Hong Kong Trade Development Council (HKTDC), Dickson Ho said that businessmen in India were not sure how to tap the potential Indian markets possess. He emphasized on the fact that majority of companies in Hong Kong are small and medium enterprises and therefore, India needs to hand out more initiatives to them. The SMEs in HongKong need incentives, flexibility in labor laws and long term agreements along with consistent policy on ease of doing business, the top economist said.
Dickson Ho further stated that small scale industries in India should have more hire and fire flexibility. This comes after the fact that restriction applied to Chinese companies are now applied to Hong Kong companies too.
The Modi government has initiated labor reform measures such as Shram suvidha, universal account number system, and ‘Skill in India’ to boost efficiency in the industrial sector. While ‘Apprentice Protsahan Yojana’ has been specially initiated for micro, small and medium enterprises to encourage growth in these sectors. But Hong Kong feels that their smaller industries face difficulty in engaging with India markets.
However, Mr. Dickson Ho applauded Prime Minister Narendra Modi’s ‘Make in India’ initiative. Make in India initiative was initiated to address the problems of ease of doing business, infrastructure inadequacies, stringent investment regulations, inflexible labor laws and the huge Skill Gap. The initiative is driven by Invest India. Invest India, the country’s official agency for investment and facilitation looks at ways to make regulatory processes simple in order to boost ease of doing business. Make in India aims at providing the base for innovation, investment and skill development. Despite the purpose that the initiative serves, Mr. Ho stated that India needs to promote it more to attract more investors from Hong Kong. Currently, India is the sixth largest trading partner of Hong Kong. Therefore to increase the growth of the bilateral trade further, Hong Kong feels that India must promote and transform itself as a more business friendly nation.