Corruption and Red Tape in India
Corruption and bribery remain major obstacles to business growth in India.
The "India Business Corruption Survey 2024" reveals 66% of businesses admit to paying bribes.
The problem is most severe in sectors like GST, labor, income tax, pollution, and property registration.
Economic Impact of Corruption
Corruption deters foreign direct investment (FDI), with 80% of survey respondents believing it’s a significant barrier.
India needs a transparent, predictable regulatory framework to improve business climate.
Compliance Challenges
Frequent compliance rule changes (9,420 updates in one year) create inefficiency and corruption.
Regulatory officials often use compliance provisions to demand bribes, undermining the system.
The Jan Vishwas Act and its upcoming '2.0' amendments are a step forward but leave thousands of imprisonment clauses unaddressed.
The Need for Digital Solutions
The current compliance system is outdated, requiring numerous documents across multiple departments.
A digital-first approach, like a unified business identity system, could streamline compliance and reduce corruption.
India’s Digital Public Infrastructure can be leveraged for business reforms, simplifying processes and cutting approval times.
Global Competition for Investment
As global economies like the U.S. improve business efficiency, India risks losing investment and talent due to its bureaucratic hurdles.
India must modernize its compliance framework to stay competitive in the global market.
The Path Forward
India needs a clear, structured compliance framework to support business growth.
The government must act decisively to remove corruption, streamline compliance, and attract global companies and investments.
COMMENTS