Survey: 66% of Indian businesses pay bribes, corruption persists despite digital reforms

A survey conducted across 159 districts in India has found that 66% of businesses paid bribes in the last 12 months to obtain government services. The survey, which received over 18,000 responses, was conducted between May 22 and November 30, 2024. The findings indicate that bribery remains a widespread practice among businesses when interacting with government agencies to secure permits, qualify as suppliers, obtain orders, and process payments.

The survey revealed that 54% of businesses reported being forced to pay bribes, while 46% paid bribes voluntarily to expedite bureaucratic processes. Among the respondents, many indicated that bribes were paid to avoid delays in processing applications, receiving government orders, and ensuring the timely completion of required formalities. In particular, businesses noted the need to pay bribes for obtaining duplicate copies of authority licenses or completing property-related paperwork.

The report highlighted that 75% of bribes were paid to officials in departments such as legal, metrology, food, drug, health, and GST. Additionally, businesses also reported paying bribes to officials in municipal corporations, the pollution control department, and the power sector. These departments are critical for business operations, and the payments were often made to expedite approvals, certifications, and to clear regulatory requirements.

Despite efforts to reduce corruption, such as digitizing government processes and installing CCTV cameras in offices, the survey found that bribery continues to occur away from surveillance areas. The survey suggests that many businesses still resort to bribery to circumvent bureaucratic delays, even when digital reforms are in place to streamline processes. Although government initiatives like the eProcurement marketplace aim to reduce corruption, businesses reported that these systems have not completely eliminated the opportunities for bribery, particularly in relation to supplier qualifications, bid manipulations, and completion certificates.

The survey also indicated a slight reduction in the frequency and total value of bribes paid by businesses in the last 12 months, though bribery remains a prevalent practice. Despite efforts to improve government transparency, businesses continue to pay bribes to expedite essential processes. The report further noted that while digital tools and reforms may reduce some opportunities for corruption, bribery persists in areas where digital systems are not fully integrated or where human intervention is still required.

The survey results indicate a deep-rooted reliance on bribery in dealing with various government departments. Even as India works toward digitizing services and promoting transparency, businesses continue to face challenges in navigating bureaucratic processes, with bribery remaining an unfortunate and common solution for many.