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Home National

66% of Indian Businesses Paid Bribes for Government Services: Report

83% of bribes were paid it in cash and 17% paid it in kind (gifts or favours); 54% of businesses surveyed indicated they were forced to pay bribes. 46% paid it for timely processing of documents, qualifying as a supplier, secure quotations & orders and collect payments. Bribery rampant in labour/PF, property/land registration/transfer, drug, health departments, etc. Number and aggregate value of bribes paid however dipped in the last 12 months. Introduction of systems/tech, removal of human interactions critical to reducing corruption.

TNC BUREAU by TNC BUREAU
December 9, 2024
in National, Top News
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66% of Indian Businesses Paid Bribes for Government Services: Report
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New Delhi: A recent survey by online platform LocalCircles has revealed that 66% of businesses across 159 districts in India admitted to paying bribes in the last year to access government services. The India Business Corruption Survey 2024, which gathered 18,000 responses, highlighted the entrenched nature of bribery in dealings with various government departments.

According to the survey:
54% of businesses reported being forced to pay bribes, while 46% did so voluntarily to expedite processes like supplier qualification, securing orders, and collecting payments.
Only 16% of firms claimed they managed to complete tasks without resorting to bribery, while 19% said they had no need for such dealings.

The report described bribery as a “way of life” for businesses dealing with government departments for permits, compliance approvals, property-related documents, and more.

Despite ongoing digitalization efforts, corruption continues unabated. Loopholes in systems such as the Government eProcurement Marketplace allow opportunities for manipulation in supplier qualification, bid approvals, and payment processing. Moreover, bribes are often paid discreetly, away from surveillance, the report noted.

Sectors Hit the Hardest:
The survey identified key departments where bribery is rampant, including legal, metrology, food safety, health, and drug regulation. Additionally, businesses reported paying bribes to GST officials, pollution control boards, municipal corporations, and power departments.

Call for Systemic Reform:
While the number of bribes has decreased slightly due to increased computerization, the survey underscored the need for robust reforms to curb corruption. Strengthening digital systems, reducing human discretion, and promoting transparency are critical steps to create a more business-friendly environment in India.

The survey, conducted between May 22 and November 30, 2024, underscores the urgent need to tackle the systemic corruption that continues to hinder Indian businesses.

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