Around 66% of business houses or firms paid bribes on one or more occasions in the past year, according to a report based on the India Business Corruption Survey 2024, conducted by the online platform LocalCircles. The report, based on 18,000 responses from 159 districts, sheds light on the pervasive issue of corruption that continues to challenge businesses across the country, even as digital payments and compliance measures are tightened by the government.

According to the report, a significant percentage of businesses confessed to paying bribes in the past year to navigate bureaucratic hurdles. "Transport department officials, power department representatives, and municipal authorities were among the most commonly approached for such payments," the report revealed.

About 41% of respondents (2,339 responses) in the survey said they paid bribes several times in the past year, while 24% said they bribed once or twice. The report noted that among businesses that paid bribes, 54% were forced to do so, while the remaining paid voluntarily to expedite processes.

"It was the only way to get work done," said 46% of respondents, while others stated, "It would have taken a long time or significant effort without a bribe," quoting the report's findings.

Despite efforts to create a cleaner business environment, the survey reveals a grim picture of bribery, inefficiency, and uneven governance. Cash remains the most prevalent form of bribery, followed by indirect payments via agents or in-kind exchanges like gifts.

When asked about the mode of payment, 53% of respondents said they paid in cash, 30% mentioned using agents, and the remainder cited in-kind payments or favors.

"While some businesses reported no interaction requiring bribes, a majority felt that the system still forces compliance through unofficial means," the survey noted.

Anti-Corruption Measures: Effective or Ineffective?

Despite several anti-corruption initiatives rolled out by state and local governments, many businesses expressed doubts about their effectiveness. Approximately half of the respondents stated that measures taken in their regions were either ineffective or poorly implemented. "There is a clear gap between intent and execution when it comes to curbing corruption," remarked the report.

While some states have made progress in reducing bribery through stricter governance, others remain hotspots. Businesses in certain regions reported higher satisfaction with local government initiatives, though the survey pointed out that consistency is still a challenge.

The report also highlights the disproportionate impact on smaller businesses, which often lack the resources to navigate corrupt practices efficiently. "For SMEs, the financial and emotional toll of dealing with corruption is much higher compared to larger corporations," the survey indicated.

Respondents emphasized the need for transparency, digitalization, and stricter enforcement of anti-corruption laws to create a level playing field. The report also stressed the importance of minimizing human intervention in regulatory processes through technology and ensuring strict punitive measures for violators.

The survey underscores a pressing need for systemic reforms and sustained vigilance to create a corruption-free business environment in India. The report also gain additional relevance  in light of recent allegations of bribery involving the Adani Group, which have sparked debates over corporate governance and systemic accountability in India. As the country seeks to attract global investment and foster entrepreneurship, addressing these issues will be key to ensuring long-term growth and equity.