Corruption can cloud 9 percent growth aspiration: SurveyMarch 14th, 2011 - 5:55 pm ICT by IANS
New Delhi, March 14 (IANS) At a time when India is aiming for over 9 percent growth, the rising levels of bribery and corruption cases have cast dark clouds over the hard-earned success by the country during the last two decades, reveals a new survey.
“A series of high-level corruption and scams over the past two years are now threatening to derail the country’s credibility, especially in the international arena, and economic boom witnessed especially since liberalisation,” says consultancy KPMG’s survey.
“We realized that there was an uneasy sentiment among the corporates in India about the recent developments,” said Deepankar Sanwalka, the head of risk and Compliance unit for KPMG India, pointing out the reasons for the survey.
It reveals how the Indian corporate sector is battling corruption and at the same time looking for ways to play a greater role in improving the systems to ensure a thriving business environment in India.
The key findings of the survey are:
-68 percent of respondents feel India can achieve over 9 percent growth if corruption is controlled
-51 percent fear rising corruption will make India less attractive to foreign investors
-90 percent feel corruption negatively impacts the performance of stock markets
-99 percent feel the biggest impact of corruption on business is its tendency to skew the level playing field
-68 percent believe in many cases corruption is induced by the private sector
-Majority feel corruption level in India will remain at the same level irrespective of legislations
-Right to Information Act is seen as the most effective tool in fighting corruption
-84 percent believe that Indian government has not been very effective in enforcing anti-bribery laws.
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