Despite the Prevention of Corruption (Amendment) Act 2018 criminalising both giving and receiving bribes, it continues to be widespread, with 83% of bribery paid in cash and 17% as gifts or favours, according to the latest survey. According to the India Business Corruption Survey 2024 by LocalCircles, which includes 2,339 respondents, though business bribery decreased over the past year, 66% still admitted to paying bribes on one or more occasions.

Around 54% of the businesses surveyed said they were forced to pay bribes, while 46% reportedly paid for expediting processes like document approval, supplier qualifications, securing orders and payment collection.

The survey said that key departments including labour, property registration, and health remain hotspots for corruption. “However, there has been a noticeable decline in both the frequency and total value of bribes over the past year,” the findings suggest.

Of the 2,339 respondents surveyed for the report, 41% of businesses admitted to paying bribes multiple times, while 24% said they did so once or twice. Only 16% claimed they consistently avoided paying bribes, and 19% stated they never encountered a situation where it seemed necessary.

Among 2,183 responses, 56% said it was the only way to get things done, while 46% said it would have taken a long time without paying a bribe.

Among the departments, 75% of the bribes were paid to officials of departments such as legal, metrology, food, drug, health, etc. Around 75% of the bribes were towards officials in departments like legal, metrology, food, drug, and health, according to the survey.

“Nearly 7 out of 10 Indian businesses paid bribes in the last 12 months mostly to the government officials to get permits or compliance done or for timely processing of contracts, with transactions exchanged mostly in cash and some in kind,” the survey states.

Businesses pay bribes for various trade-related reasons, such as qualifying as suppliers, securing quotations and orders, and collecting payments.

The survey gathered over 18,000 responses from over 9,000 unique businesses across 159 districts in India. Of the respondents, 42% were from metro or tier 1 districts, 33% from tier 2 districts, and 25% from tier 3,4, and rural areas.

India has become one of the most appealing destinations for both investments and business operations. In FY24, the country attracted $70.95 billion in foreign and direct investment (FDI). India also improved in the World Bank’s Ease of Doing Business Index, rising from 142nd in 2014 to 63rd in 2019. However, bribery continues to be a menace.