‘You’re better off in….’: Reddit rant exposes Red Tape strangling India’s small exporters
A Reddit post by a frustrated Indian entrepreneur has sparked a wave of online discussion after it exposed the harsh realities behind India’s “ease of doing business” claims—especially for small exporters. The viral post, titled “Why you should not try exporting from India Vent & Rant”, comes from Reddit user Limp-Question-4778, who detailed how regulatory hurdles crippled his promising business.
“All the talk of ease of doing business is just talk and no walk. You are better off moving to Dubai and exporting from there than from India,” the user wrote, summing up a four-year struggle marked by bureaucratic traps, unresponsive authorities, and financial losses.
Why you should not try exporting from Indiabyu/Limp-Question-4778 inStartUpIndia
Based in a small village in India, the entrepreneur initially ran a successful domestic e-commerce venture, shipping up to 400 orders a day. His troubles began in 2022 when international demand encouraged him to explore B2C exports. That move, however, opened the floodgates to what he called “nonsensical” procedures for shipments worth just $30. He cited the need to obtain an IEC certificate, register on ICEGATE, secure an AD code from his bank, and rely on licensed couriers.
“We had to pay GST TWICE on a shipment on which we did not earn a penny,” he wrote, referring to a rejected shipment that was taxed once going out, and again when returned—despite the transaction earning him nothing.
In another instance, integration failures between Customs, GST, and RBI systems meant that roughly ₹50 lakh worth of shipments were left marked as “open.” He was asked to close each shipping bill using a CSB 5 form at a cost of ₹400 per document—totalling ₹8 lakh, or 16% of his annual turnover. When he missed the deadline, the RBI labeled his account non-compliant and froze it, effectively killing his export operations.
Repeated appeals to RBI and the Commerce Ministry fell on deaf ears, despite the entrepreneur providing detailed documentation and even diagrams to explain the situation. “We honestly don’t have the funds, people or stamina to deal with one more bureaucratic nightmare,” he wrote, referring to the risks of claiming Input Tax Credit (ITC), which many small exporters avoid for fear of audits.
Drawing a sharp contrast, the entrepreneur noted how easy it was to set up a company in the UK from India. “I can set up a UK-based company & bank account in 2 days… sitting in India, I can’t set up a company in 2 months despite bribes,” he wrote.
Perhaps the most devastating impact was on the workers he had employed. “Over 50 rural women who were earning a living through our business are back to their hardships,” he wrote, mourning the end of what had once been a life-changing opportunity for many.
The post has triggered widespread discussions online, with many echoing similar frustrations, highlighting the widening gap between India’s policy promises and on-the-ground reality for small businesses.
