Scams can negatively impact FDI inflows: Survey
The recent spate of scams can hit FDI inflows and greater law enforcement is needed to curb the menace, according to a survey among top corporate executives.
New Delhi: The recent spate of scams can hit FDI inflows and greater law enforcement is needed to curb the menace, according to a survey among top corporate executives.
The survey results, released a day after government eased investment norms in multi-brand retail and raised FDI caps in several sectors, said complicated systems, lack of will in getting permits the right way and desire to get unfair advantages are key factors fuelling bribery and corruption.
The online survey "Bribery and corruption: Ground Reality in India" by consultancy firm EY was conducted between March and May in which 200 senior executives took part.
"Around 83 percent of respondents felt that the recent spate of scams can negatively impact FDI inflows into the country," it said.
More than half of them agreed that it is the lack of will to obtain licenses and approvals the "right way," which leads to bribery and corruption.
More than 90 percent of the respondents reported that their companies had anti-bribery and corruption policies in place, standalone or covered under their code of conduct policy.
At the same time, they also said their firms have lost business to their competitors because of latter's unethical conduct.
Respondents of the survey identified infrastructure and real estate; metals and mining; aerospace and defence; and power and utilities as most vulnerable to corruption.
Around 89 percent of the respondents felt that there should be greater enforcement of laws to curb the proliferation of bribery and corruption.
"Two-thirds of the respondents were optimistic that new regulations such as the companies Bill 2012 will make a difference and help in reducing fraud, bribery and corruption in the country," the survey said.
"By analysing reported corruption cases in media, we estimated that the potential losses suffered by the Indian economy to Rs 36,400 crore," EY said.