66% of Indian businesses admit to paying bribes for government services, reveals survey

A survey conducted by LocalCircles has uncovered a troubling trend in India, revealing that approximately 66% of businesses surveyed across 159 districts admitted to paying bribes to obtain essential government services. The findings indicate that corrupt practices remain pervasive, despite efforts to enhance transparency through digital measures and increased surveillance.

The survey, which gathered over 18,000 responses from business firms, was conducted between May 22 and November 30. It found that a significant portion of the reported bribes—75%—were directed towards officials from various government departments, including legal, metrology, food, drug, and health sectors. Additionally, businesses reported paying bribes to GST officials, pollution departments, municipal corporations, and power departments.

Notably, 54% of respondents stated they felt compelled to pay bribes, while 46% claimed they did so voluntarily to expedite bureaucratic processes. The report underscores that bribery has become a normalized aspect of interactions with government agencies, often viewed as necessary for timely permits, compliance, and other services. Only 16% of businesses reported completing their transactions without resorting to bribery.

The report also pointed out that improvements such as digital procurement systems and enhanced CCTV surveillance have not been effective in curbing these corrupt practices. Bribes are frequently exchanged away from the eyes of cameras, demonstrating the ongoing challenges in tackling corruption.

Despite the alarming statistics, businesses indicated a reduction in the number and value of bribery transactions over the past year. Aakash Sharma, a partner at Deloitte India, noted that companies must reassess their compliance strategies and establish robust anti-corruption programs to adapt to the evolving regulatory environment.