Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: VAT Audit :: empanelment :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: TDS :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: VAT RATES :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: due date for vat payment :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
General »
 Banks warn share tax hike threatens Paris' post-Brexit appeal
 PMC may decide on property tax rebate for IT firms this week
 I-T Dept is giving out certificates of appreciation. Have you received yours?
 Government works on ironing out benefits refund mechanism for exportersa
  Tax officials are using an IDS provision to question transactions beyond six-year-limit
 Tax-free bonds rally like midcap funds
 Senior citizens do not have to pay advance tax on salary and interest income
 GST: Audit commissioners to get adjudication powers
 Interest on NRE rupee account can be exempt from tax under FEMA
 Impact of GST on Real Estate Sector
 GST regime: Tax payers allowed to take option of third-party interfaces

KPMG survey: Corruption threatens India's high growth momentum
March, 15th 2011

Endemic corruption in India has grown in scale and represents billions of dollars, with the potential to discourage investors and derail growth prospects, consultancy firm KMPG said in a survey published on Monday.

The survey of 100 leading domestic and foreign businesses was published as Prime Minister Manmohan Singh's government struggles to defend itself against graft cases ranging from a $39 billion telecoms scandal to houses for war widows diverted to bureaucrats.

The scams, exposed in recent months, point to a pervasive culture of corruption in Singh's administration, prompting a man once seen as India's most honest politician to defend his leadership and scramble to keep the ruling coalition intact.

And the graft riddling Asia's third-largest economy was no longer confined to bribing government officials for passports or telephone connections from the state provider, the report said.

"Today India is faced with a different kind of challenge," the report said. "It is not about petty bribes (`bakshish') any more, but scams to the tune of thousands of crores (billions of rupees) that highlight a political/industry nexus which, if not checked, could have a far reaching impact."

Most businesses surveyed said they were committed to their positions in one of the world's fastest growing economies with a rapidly growing, and wealthier, middle class, the survey showed.

More than two-thirds of those surveyed said corruption prevented India from moving beyond the 9 percent growth expected in the next fiscal year starting April 1. Just over half said graft would make the country less attractive to foreign investors.

"Corruption poses a risk to India's projected 9 percent GDP growth and may result in a volatile political and economic environment," the report said.

The murkiest sectors were real estate and construction - a focus for India as it plans to spend $1.5 trillion over a decade to overhaul creaky infrastructure - followed by telecommunications where the state was still heavily involved and the stakes high.

The scandals have created a sense of regulatory uncertainty, especially in the telecoms sector, which has come under heavy scrutiny after faulty allocation processes were said to have cost the government up to $39 billion in lost revenue.

Several big businessmen, including billionaire Anil Ambani, were questioned by federal police, and even Singh had to defend his conduct to the Supreme Court, unprecedented events in a country where the business and political elite were sometimes seen as above the law.

"India has at last realised that one of the major reasons for most of the large scale corruption incidents has been due to the empowered discretion that the government has had," Surjit Bhalla, the head of Oxus Investments, wrote in the preface to the report.


British Prime Minister David Cameron wrote to Singh in February warning that India's unpredictable and non-transparent business climate could derail bilateral trade ties.

Ratan Tata, one of India's most prominent industrialists, in November recounted a conversation with a fellow businessmen in which the latter detailed the hefty bribes the government demanded from players in the airlines business.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Organic SEO Outsourcing Organic Search Engine Optimization Outsourcing Organic Website SEO Organic SEO India Website SEO India Organic Search Engine Optimization India Organic Internet SEO India Organic Web

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions