Capital inflows, international trade and private and public enterprise have helped contribute significantly to India’s growth since liberalisation. With the idea of understanding how corruption is impacting each of these pillars and eventually the economy at large, KPMG in India conducted this survey with certain leading Indian corporates in order to understand their perception of how corruption is corroding the economy as well as the corporate environment. Some of the key findings include:
* 68% of survey respondents believe that India can achieve more than the projected 9% GDP growth if corruption is controlled
* 51% of the survey respondents fear that rising corruption will make India less attractive for foreign investment
* 90% of respondents feel that corruption negatively impacts the performance of stock markets by increasing volatility and prevents institutional investors from making long-term investments
* 99% respondents felt that the biggest impact of corruption on business was its tendency to skew the level playing field and attract organisations with lesser capability to execute projects
* 84% of the respondents believe that Indian government has not been very effective in enforcing anti-bribery and corruption laws
The survey highlights these insights in detail. It also dwells on specific topics such as the preventive mechanisms, internal controls that can be adopted, effective measures to curb the risks of corruption as well as what one can expect in the coming years.