India offers many opportunities for those who are brave enough to take risk and smart enough to avoid the pitfalls. One of the greatest pitfall while doing business is India is the widespread corruption.
None other than the business icon of India, Ratan Tata, chairman of the $67.4 billion conglomerate, voice his frustration, stating that he hasn’t been able to expand more in his native India simply because of bureaucratic delays, arbitrary regulatory decisions and widespread corruption which have thwarted his domestic ambitions in such sectors as steel, power, aviation and telecommunications.
These are the concerns of a business tycoon whose business empire is operating within India from decades and understand the Indian market well enough.
Rampant corruption within India is one of the major reason that Anna Hazare, anti-corruption activist is getting nationwide popular support and all the big bollywood stars are supporting Anna Hazare.
On the worldwide Corruption Perceptions Index (CPI), India has been ranked at 72 position with CPI score 3.5 among 179 countries of the world. (CPI Score relates to perceptions of the degree of corruption as seen by business people and country analysts, and ranges between 10 [highly clean] and 0 [highly corrupt].
As the corruption issue and uncertainties about doing business in India are spreading, Foreign-direct-investment equity inflows fell 22% in 2010 compared with the previous year.
It is high time now for the Indian government to focus on this issue seriously and take some strict action.
About the author:
Subodh Gupta is the author of the book “Doing Business in India and Understanding Pitfalls”. “Doing Busines in India and Understanding pitfalls” is the only book which highlights business challenges in detail while doing business in India.
The author and corporate trainer Subodh Gupta has worked for around 12 years in India as an entrepreneur, an engineer, a guest professor to various MBA schools and around six years in the UK as a freelance trainer and consultant.
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