India's middlemen, bribes, borders and tax reform

Washington

SEIZED vehicles. Bribes. Days-long delays. Moving goods across Indian states isn't exactly easy - and that's a major barrier to economic growth.

Rolling a truck of vegetables into Gujarat, the state once governed by Prime Minister Narendra Modi, requires a bribe of 500 rupees (S$11) to 2,000 rupees even with your papers in order, according to Rakesh Kaul, vice-president of Caravan Roadways Ltd, which has about 400 trucks plying India's pot-holed roads.

But getting past the state tax collectors into Uttar Pradesh, India's most pop…