14th ALL INDIA ELOCUTION COMPITETION

Neha Baxi
Registration No. : 450006059/02/2013
TOPIC:
Whether
- Reducing regulations for 'easing of doing business in India'
and
- Increasing regulations for 'enhancing corporate governance'
are contradictory or
complimentary?

Honourable chair, esteemed judges, distinguished and elite

audience and my fellow participants, I extend my pleasantries.
I am Neha Baxi, here, to put forward my opinion on the issue as
to whether reducing regulations for ease of doing business and
increase of regulations for enhancing corporate governance are
complimentary or contradictory. I rather hope, that you are going
to ponder upon my views and would try to agree with me in the
end. Friends, we should abstain from being emotional here. This
is a topic which has something to with the corporate world and in
turn our economy. Not only that but it also affects our perception
are upcoming young Company Secretaries.
When I got hold of the topic, my first reaction was that the two
statements are indeed complimentary. How they contradict each
other is something I fail to comprehend. But again, perceptions
do matter and I whole heartedly welcome other to provide their
valuable insights.
Taking forward my opinion I would like to bring upon the fact
that an economy does not always and only have large successful
organisations. It has many more start-ups than established
conglomerates. In India for instance, the year 2014 alone
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witnessed as numbers tell 3,100 start-ups to a projection of

11,500 by 2020 itself. That is not even more than 5 years down
the line! This is not a passing trend ladies and gentlemen; but a
revolution indeed.
However positive and inspiring that is, our position in Doing
Business report issued by the World Bank continues to be less
than favourable. As per latest rankings, India is placed at 142 nd
among 189 countries. Lower than its BRICS counterparts too. Let
alone that, when looked at individual components, a thing as
routine as obtaining construction permits, we are at the worst
bottom! No. 182?!?!? Let us ask ourselves people, are we not
capable enough to take our country to the list of top 50!?
KPMG India, recently conducted a survey to compare Indian
corporate environment with other south Asian countries. It was
found that on an average it takes almost twice as many days to
even start up a business here. Numbers are disturbing! 27 days
here to just 16 odd days in other south Asian countries.
Although the start-ups are the worst hit, big organisations are
not spared either. Engaging countless man-hours and all forms of
resources in a single unit of operation only acts as a major speed
bump in their journey towards success.
When the statistics are so discouraging, how can we put
businesses under further more pressure when they already are
surviving in ever so competitive world. How can economy be
expected to flourish if business experience more red tape than
red carpet! How can our government, our system, not provide
help. Not provide assistance and not provide assurance that we
do have your back and we will do the needful. Like a child
learning to walk, businesses too need support. They need

guidance. They dont want to get pushed over. They need

relaxations.
This is where i largely emphasize on how important the need for
reduction of regulations is to ease the business environment of
India. Relaxation would mean increase in opportunities to the
young players and at the same time stop the big ones from taking
undue advantage of their position and money. This would lead to
competition and thereby the essence of consumer benefit would
gain substance. Dont you think that the airlines, the oil and gas
sector are the worst hit, majorly because these simple factors
happen to be absent there!
Looking at some positives, I highly appreciate various decisions
and extensive steps taken by the governments and concerned
institutions for eradication of redundancies that prevailed. Their
consensus

is

positive

move

forward.

De-licensing,

de-

regularisation, ease in obtaining TIN, PAN, cut off in rates etc.,

among many other are commendable initiatives. The projects like
Digital India and introduction of e-biz portal where as many as
14 regulatory permissions are integrated at one place do not fail
to take the centre stage.
Moving on to the next segment, I would like to highlight the
concept

of

Corporate

Governance.

Like

any

other

major

philosophy, Corporate Governance too has been decorated time

and again with plenty of high end definitions. But when simply
put, I dare say it establishes itself on three strong pillars of
Direction, Transparency and Control of those charged with
governance.
Corporate governance in indispensable to effective market
discipline considering the fact that we have become worlds
fastest growing economy. Growing economy suggests huge influx
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of capital but money and power are two very notoriously tricky
concepts. Unfortunately, not everyone inherits and implements
the beauty of inclusive growth. Resulting, in a strict Corporate
Governance framework. These regulations enable functioning of a
smooth corporate system. Although loop holes are inevitable and
mistakes do creep in, do you think if stringent rules prevailed in
the past, Mr Raju would have succeeded in pulling off the
SATYAM scam? Do you think people like Mr. Harshad Mehta and
the then chairman of UTI, Mr P.S. Subramanyam would have
succeeded in siphoning off huge sums of money from millions of
investors? Do you think COALgate, and a scam as recent as
VYAPAM would have occurred if proper vigilance was kept at that
time?!?
Regulation being the link between the level of ease of business
and level of corporate governance, from a birds eye view it gives
evidence that topic provided is mutually exclusive. But look
closer, observe harder, study in depth and you realise that by
increasing the regulations you are ultimately reducing them in
the long run by way of lesser legal complications, compliances
and punishments.
Friends, this universe is all about maintenance of balance.
Nature too takes it own course for maintenance of the same. For
example, it introduced carnivores to the food chain and provided
humans with two legs to keep them balanced. Thus mankinds
any law cannot deviate far from this founding principle of
existence itself. When discussed in financial scenario no economy
or commerce shall be governed in a manner where the rich are
provided for at the cost of the poor.
Similarly, for balancing the economy, increase and decrease in
regulations are practically two sides of the same coin. While
being liberal at certain point is necessary for speedy growth,
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strict regulations act as check post to keep cunning minds at bay

from disrupting the growth and health of our nation.
Going forward with a single mind frame that one thing is possible
only at the cost of losing the other is an impractical approach
and shows two points of extremes. This brings me back to the
point where I discussed the theory of keeping balance.
Also, India being a democratic country, it is only wise to give
everyone a fair chance of progress. Thus, by finding a mid-way
and accepting that the subject matter in hand is indeed
complimentary to the core, we would put meaning of democracy
in motion and very positively so!
Herewith, I would like to conclude but not before I extend my
gratitude towards our institute for providing me with an
opportunity, a platform where I could put words to my
perspective.
Sincere thanks to you all, for giving me a patient ear.
Thanks once again.
I hope you all have a pleasant day forward.

Submitted by:Neha Baxi

Registration no. : 450006059/02/2013
Neha.baxi04@gmail.com
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08878998558