Corruption Causes Rs 36,400 Cr Loss to India

Naina Lal Kidwai, president of FICCI said, "Clearly, to stay ahead in this competitive world, we need to improve our governance systems. Given the state of India's economic development, good governance is absolutely critical to give us a competitive edge and sustain growth. Corruption invariably increases transaction costs and uncertainty in an economy while lowering efficiency by forcing entrepreneurs to divert their scarce time and money to bribery rather than production."

As per 77 percent respondents the managing directors are responsible for handling the bribery and corruption-related issues in the organizations.

The unprincipled business conduct like irregular accounting, to hiding bribery and corruption, complementary gifts given to agents and third parties being engaged to pay bribes are some of the common instances which have been witnessed by most of the respondents directly or indirectly.

89 percent of the respondents thought that insufficient enforcement of laws is adding to the increasing problems of bribery and corruption in India. New policy like the Companies Bill 2012 brings hope to two third of the respondents that it will make a difference as fraud, bribery and corruption in the country might reduce.

Also Read: Governments Fail to Curb Corruption in Defence: Survey