According to the World Bank’s Ease of Doing Business 2023 report, India is ranked 61st out of 190 countries. Pune is one of the most important commercial and industrial hubs in India, and it is ranked among the top 10 cities in the country for ease of doing business.

While Businesses (industries from MSMEs to MNCs, family run grocery shops to international retail chains and everything in between) depend on state and national policies and the economic mood in general, there are a lot of things that a city can do to ensure growth.

Also, businesses and industries play a pivotal role in civic matters – shaping tax revenue, employment, and migration trends within a city. Very often, the primary business of a city defines the entire character and identity of a city – example: Bangalore as IT hub, Mumbai as Financial and Entertainment city.

 

What makes a city good for Business?

We have had good success in the past with initiatives like the Maharashtra Industrial Development Corporation (MIDC) led industrial parks and zones in Pune, such as the Bhosari Industrial Park and the Ranjangaon Industrial Park and the IT parks and zones in Pune, such as the Rajiv Gandhi Infotech Park at Hinjewadi.

But a great deal more remains to be done.

Everything we have written about in this report has a direct bearing on ease of doing business. Traffic & road issues cause a huge loss of business productivity. Public transport and affordable housing, water, sanitation, and pollution issues keep away talented human resources as well as new investment. Attracting World Class Talent requires that we overhaul the entire city on the lines discussed in this report. All great cities are built on the backs of locals as well as immigrants. We need to make people Want to move to Pune.

 

Here are a few other issues we have not covered so far:

Electricity: 

Reliable power supply is fundamental for businesses, yet Pune witnesses frequent electricity cuts in outlying areas and regular outages across the city, even with minor rainfall, due to lack of accountability among power companies. The amount of maintenance downtime that Pune’s electricity service experiences has no parallels in history or geography. This is the most basic need for any individual, but for businesses this is critical. Pune’s Electricity supply has to be fixed Now!

 

Internet:

A reliable, mission critical, high speed internet connection is no longer a luxury but a basic necessity. We are still unable to provide this in Pune, even though people are willing to pay for it. Frequent road digging leads to the accidental cutting off of broadband wires – and this causes crores of rupees of disruption.

 

Railway Connectivity: 

There is a need to beef up existing Railway services to other cities as well as fill in the missing routes (ex: Nashik). But what is equally important is to strengthen connections to nearby towns which can eliminate the housing burden of Pune by allowing workers to commute to the city for work on a daily basis. Establishing townships and mega housing projects along the railway line, creating new stations as well as local commuter trains will have to be done.

 

Airport:

A full-fledged international airport (the current one is inadequate as it is part of the Indian Air Force base) has been the demand of Pune’s citizens as well as Business community for over a decade now. But it has been ignored by successive governments who have played a game of passing the (land) parcel. The recent budgets did not even mention the new Pune budget, so the actual land acquisition and building of the airport remains a distant dream. One cannot have world class businesses without a world class airport. Pune urgently needs a new airport.

 

Red Tape:

1. Starting a business: It takes an average of 4 days to start a business in Pune
2. Dealing with construction permits: It takes an average of 22 days to obtain a construction permit.
3. Getting electricity: It takes an average of 25 days to get an electricity connection in Pune, which is lower than the national average of 35 days.
4. Registering property: It takes an average of 32 days to register property.
5. Paying taxes: It takes an average of 125 hours to pay taxes.
6. Enforcing contracts: It takes an average of 420 days to enforce a contract in Pune

Government regulations can sometimes be complex and time-consuming to comply with. This can be a burden for businesses, especially small and medium-sized enterprises. Additionally, bureaucratic red tape hampers productivity. Restrictions, like limits on business signage and convoluted regulations, stifle entrepreneurial growth. Eliminating such hindrances requires political will and concerted efforts to make Pune more appealing to entrepreneurs.

Gandhiji’s Talisman:

When we talk about ease of doing business, we only think of big companies and factories. But even a street vendor is a businessperson and an entrepreneur. Pune should care about these micro-entreprenuers as much as it cares about big business. We look at street vendors as a necessary evil, and often talk about them in terms of encroachments in public places.

Encroachment:

In the list prepared by the Pune Municipal Corporation (PMC) Anti-Encroachment Department, the issue of encroachment has become serious in 264 hotspots in the city. This includes the highest number of 37 places under the Kasba Vishrambag Regional Office in the central part of the city.

Pune Municipal Corporation (PMC) gives permission to vendors to drive stalls, and handcarts as per the policy. Although there are currently 21,000 licensed businesses in Pune, at least twice as many are doing business on unauthorized commercial roadside walks and intersections.

The city’s 45 major roads and about 150 squares have been declared as restricted areas for the stalls. But this order is only on paper. There are encroachments and illegal stalls on every major road in the city or the suburbs.

There can be no doubt that such encroachments should not be allowed, we must also find a solution that allows these fellow citizens alternative opportunities to earn their living. These street vendors often serve the vast majority of lower income citizens – so this service must continue for the benefit of these millions of customers.

 

EMPLOYMENT 

(Note: We are still working on this section. It will be updated after the next round of public consultation is completed)

How is the city going to deal with AI, Automation, Climate Change (and increasing migration because of it?) – none of this finds even a mention in the city planning. But these are going to be the drivers of the future.

How do we include and then encourage Women in the workforce?

What about the working conditions of Gig Workers, delivery personnel?

How do we fight child labour?

We have huge numbers of competitive public exam aspirants in Pune. How will the city help them excel in the exams and also have a plan B?

How can we get more diversity in startups? How can people from marginalized communities be encouraged to start non traditional businesses?

How can we equip youngsters with all the non technical skills needed to compete in the global job market?

 

Best Practices for Street Businesses:

Ahmedabad 

• Designating hawker zones: The Ahmedabad Municipal Corporation (AMC) has designated specific areas in the city as hawker zones. This has helped to create a more orderly and organized system for hawkers, and it has also helped to reduce encroachment in other areas of the city.
• Issuing hawker licenses: The AMC issues hawker licenses to those who wish to operate in the designated hawker zones. This helps to regulate the number of hawkers in each zone, and it also helps to ensure that hawkers are paying taxes.

• Providing infrastructure: The AMC has provided infrastructure in the designated hawker zones, such as toilets, water taps, and benches. This has helped to improve the conditions for hawkers and their customers, and it has also helped to reduce the environmental impact of hawking.
• Enforcing the law: The AMC enforces the law against encroachment. This includes taking action against hawkers who operate outside of the designated hawker zones.
• Working with hawkers: The AMC works with hawkers to find solutions that are mutually beneficial. This includes providing training and support to help hawkers improve their businesses.
• Flexibility: The AMC is flexible in its approach to regulated hawker zones. This means that the zones can be adjusted to meet the changing needs of the city.

 

Bogota (Colombia)

• Zoning: Bogota has designated specific areas of the city as street vending zones. This has helped to create a more orderly and organized system for street vendors, and it has also helped to reduce encroachment in other areas of the city.
• Regulation: Bogota has regulations in place that govern street vending activities. These regulations cover things like the types of goods that can be sold, the hours that vendors can operate, and the amount of space that vendors can occupy.
• Licensing: Bogota requires street vendors to obtain a license in order to operate. This helps to regulate the number of vendors in each zone, and it also helps to ensure that vendors are paying taxes.
• Infrastructure: Bogota has provided infrastructure in the designated street vending zones, such as stalls, water taps, and toilets. This has helped to improve the conditions for street vendors and their customers, and it has also helped to reduce the environmental impact of street vending.
• Enforcement: Bogota enforces the law against encroachment. This includes taking action against vendors who operate outside of the designated street vending zones.
• Working with vendors: Bogota works with street vendors to find solutions that are mutually beneficial. This includes providing training and support to help vendors improve their businesses.
• Public participation: Bogota has involved the public in the process of designing and implementing the street vending regulations. This has helped to ensure that the regulations are meeting the needs of the community.
• Technology: Bogota uses technology to manage street vending. This includes using a software system to track the number of vendors in each zone and to issue licenses.
• Continuous monitoring: Bogota continuously monitors the street vending zones to ensure that they are being used effectively and that they are not being encroached upon.
• Flexibility: Bogota is flexible in its approach to street vending. This means that the regulations can be adjusted to meet the changing needs of the city.