Lack of transparency and corruption make India a difficult place for business

Lack of transparency and corruption make India a difficult place for business

Starting a business venture in India is not easy compared to certain other nations. India has a complicated system when it comes to starting business ventures. Corruption is another huge problem confronting investors who want to make India the venue for their new companies or ventures.

Even domestic businesses face corruption at the local level. It is difficult for people to begin new ventures on Indian soil because of the lack of accountability of officials and ministers.

Kickbacks are demanded for landing any corporate project or starting a venture. It becomes difficult for businessmen to sustain their profits in the face of so many obstacles.


• India is the third largest Asian economy in the world. It has immense potential and investors are often attracted by the opportunities offered by this country as well as its booming consumer market. But the slow process of administration that makes it difficult to establish businesses without giving bribes often makes entrepreneurs think twice before setting up any venture on Indian soil.

• Even established Indian companies have to resort to lobbying to get a business-friendly legislation to be passed. Big business houses are forced to think in terms of grafts and bribes because of the official machinery that functions on money exchanges for favours.

• Transparency International has placed India very low on the Corruption Perception Index. After so many years of independence, these dismal rankings represent the ineptitude of successive governments in battling evils such as bribery, money laundering and corruption. This is creating a real problem for international companies that want to collaborate with domestic firms for joint ventures. It is also causing losses to the economy and slowing down growth considerably.

• Lack of transparency in the administrative process has made it impossible for honest businessmen to have thriving and successful companies. For each new contract, massive bribes are often given to chase off competitors. Business and ethics are now being seen as contradictory to each other by many corporate personnel nowadays, as a result of the corruption and kickbacks that are rampant nowadays.

• While the upcoming general elections are being taunted as a fight against corruption, any party/parties that assume power must realize that corruption and red tapism are systemic problems and sustained reforms over a very long period of time will need to be undertaken before there is any visible improvement. Lack of transparency and constant interference has even caused Indian origin NRIs to be wary of investing in India.

• Millions of rupees are spent on paying bribes but the situation does not seem to be improving. Businesses face hurdles such as getting approval for land on which to set up the office. They are also faced with obstacles when they try to get clearance for selling certain products. Many proposed joint ventures have failed to take off due to stiff resistance from public officials and extortion demands from local criminal gangs.


The prevailing economic climate of uncertainty has added fuel to the fire. India is growing at an uneven pace with certain pockets and areas being deprived of basic utilities for long hours during the day.

Getting approval for setting up a business becomes more tedious due to the interference of vested parties as well. There are factions and lobbies within the public and private sector which hamper the establishment and functioning of companies in India.
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  • RE: Lack of transparency and corruption make India a difficult place for business -Deepa Kaushik (05/05/14)
  • Corruption in itself covers the lack of transparency. All sorts of evil outlook, illegal and anti-social activities come within the sphere of corruption. India is a severely infested by the termite corruption which has eaten up the national wealth and accumulated to a particular section of the society leaving the rest of the nation into poverty.

    Business outlook in India is really challenging. It is very difficult to analyse the trust factor with anybody to include within the business venture. The business targets towards maintaining the secrecy of the internal matters within the higher level management. People within this higher management should be trustworthy enough. Corruption within the management creates loopholes for the competitors to take a step ahead.

    Also to keep a business partnership in India is again a matter of high risk. One needs to be much vigilant for the corruption within the firm with whom the partnership is extended. This could be better analysed by the transparency in the task accomplished.

    With many challenges to be met every minutes, still there are many honest businessmen in India who remain away from the charges of corruption and deal with a fair play.
  • Lack of transparency and corruption make India a difficult place for business -Lubna Lakdawala (04/02/14)
  • Lack of transparency and corruption make India a difficult place for business

    In a recent study India has emerged as the as the most difficult country to do business. The study cites corruption as a big problem. Corruption has always been a big problem in India. Another reason making India a difficult place for business are the complicated and diverse processes. The contractual processes in India are difficult and very time consuming. Therefore over the past years there has been a slowdown in new businesses starting in India.

    The tax system in India is also another problem. The lack of transparency in the tax system of the country, makes establishing a new business a troublesome process. There is always a need for greater disclosure of information on part of the regulatory authorities like Trade and Tax controlling departments. For successful functioning of business and markets there is a dire need for openness and transparency of the regulating systems so that the business can run smoothly without facing any hurdles.

    The lack of transparency and corruption make it difficult for people to conduct business in India. It also discourages NRIs wanting to establish their business in India as they are not familiar with the high level secrecy and time consuming contractual processes. Thus because of lack to transparency and corruption India loses substantial amount of business which can benefit its economy significantly.

    The Indian domestic market has a lot of talent and potential which makes it the preferred choices for foreign investors and companies. The emerging Indian middle class and its cost competiveness are highly attractive to the potential investors but if recent news reports are to be looked at all that can be seen in the headlines is the scams, scandals, corruption cases etc. which detract the poetical investors to start businesses in India.

    Being one of the fastest growing economies of the world India has become one of the most favorite choices for foreign investors. It is an undeniable fact that businesses are better for the Indian economy as they lead to employment, technological development, and economic growth. Thus it is important that Indian authorities should revise the Indian procedures and take initiative to curb corruption.

    There a dire need in India for easy processes and a corruption free method to d business. Today anyone who needs to go to government office and get some work has to pay bribe at different levels. For business to start and function successfully in India corruption needs to be eradicated and there should be more transparency in the financial reforms in India.