A recent survey by LocalCircles reveals that 66% of Indian businesses paid bribes to government officials in the past year. While 54% were coerced, 46% paid voluntarily to expedite processes. Despite computerization, corruption persists, with bribes commonly paid for compliance, permits, and property matters. Businesses cite issues across departments like GST, health, and municipal corporations.
Bribery: A Persistent Challenge for Businesses
Despite ongoing reforms, bribery continues to be a significant hurdle for businesses in India. A LocalCircles survey, conducted from May 22 to November 30, 2024, across 159 districts, received responses from 18,000 businesses. The findings highlight the widespread nature of corruption, with 66% of businesses admitting to paying bribes within the last 12 months.
Reasons Behind Bribery
- Forced Bribes: 54% of firms reported being coerced into paying bribes to get their work processed.
- Voluntary Bribes: 46% paid to ensure faster processing of permits, compliance, or other administrative tasks.
- Common Issues: Bribes were paid for tasks like obtaining duplicate licenses, securing compliance certificates, or resolving property-related matters.
Prevalence Despite Reforms
Even with computerization and initiatives like the Government eProcurement marketplace, corruption persists. The survey indicates that bribes often occur behind closed doors, away from CCTV surveillance. Businesses report paying bribes in departments such as:
- Legal and metrology
- Food and drug
- Health
- GST and pollution
- Municipal corporations and power departments
Insights from the Survey
- Businesses Avoiding Bribes: Only 16% of respondents claimed to complete tasks without paying bribes, while 19% stated they did not require such processes.
- Widespread Impact: Corruption affects permits, supplier qualifications, bid manipulations, and payment processes. Even with digital systems, loopholes allow for continued manipulation.
Steps Forward
While initiatives like the eProcurement marketplace aim to reduce corruption, more robust measures are required. Streamlining procedures, enhancing transparency, and enforcing stricter penalties for corrupt practices can help tackle the issue. Businesses also urge for increased accountability in departments known for corruption.
Conclusion
Bribery remains a systemic issue affecting Indian businesses, stifling growth and fairness. Addressing corruption through technology, stringent monitoring, and regulatory reforms is essential to create a more equitable and efficient business environment.
