India’s Suffocating Bureaucracy and Corruption - A Major Hurdle in Economic Development

31 states, 1618 languages, 6400castes, 6religion, 6ethnic groups, 29major festivals………….and one country………that makes everyone feel proud to be an Indian. India, Bharat, Hindustan, is one of the oldest civilizations in the world, spanning a period of more than 4000 years, and witnessing the fusion of several customs and traditions. In India there are about 5600 dailies, 15000 weeklies and 20,000 periodicals are circulated in 21 languages with a combined circulation of 142 million. India has a vibrant private space100 Indian Companies have market cap of US$ 1 billion, 1000 Indian Companies have received foreign institutional investment, and 125 Fortune 500 companies have R&D bases in India. But corrupted bureaucracy, poor governance is the problem. Ironically, we used to have almost of world class institutions, fair policies & practices, politicians, but our problem was growth. Now we have growth, but our bureaucracy, institutions are failing. Bureaucracy is the collective organizational structure, procedures, protocols, and set of regulations to manage activities. It is represented by standardized procedure that guides the execution of most of the processes. Indian Bureaucracy is the administrative arm of the Government. Technically a branch of the executive but legislature also has some control over its functioning. In the Indian democracy setup, its responsibility is to turn legislation into policies. It has a wide range of duties, from formulating and planning difficult technical issues to handing out welfare checks, delivering the mail, distribution etc. Thus the government executives, public servant, politicians, judiciary institutions etc are the part of bureaucracy. This Indian bureaucracy is itself is a major hurdle in India’s track of becoming a superpower. According to a report by International Finance Corporation (IFC), the investment arm of the World Bank, India has the "most bureaucratic red tape" in the South Asian region. "It scores worst in time to register a business (89 days), difficulty of firing a worker (90 out of 100), delay in registering property (67 days), time for closing a business (10 years)," says the IFC's report "Doing Business in South Asia 2005-06”.(slide-) Further, report says that India ranks second in the region for procedures and time required to enforce a contract. It takes three months to open a business in Mumbai. Two of the months are spent on obtaining a personal account number from the income-tax department. There have been loss of $50 billion due to tax evasion; $10 billion due to delay in projects to the government due to bureaucratic red tape.E.g Corrupted, red tape bureaucracy & politics can be harmful to the Indian economy in the long run. Corruption &/in Bureaucratic practices:

In India, the web of corruption probably has a bureaucratic core. A vast bureaucracy is responsible for individual and institutionalized corruption. Out of every rupee spent by the government for development, less than a tenth of the amount actually reaches the beneficiary. Transparency International a global watchdog body, ranked India at a 85th in a 128 country list in its Corruption Perception Index, in 2008. A 2009 survey of the leading economies of Asia, revealed Indian bureaucracy to be not just least efficient out of Asian countries like Singapore, Japan, China; further it was also found that working with the India's civil servants was a "slow and painful" process.(slide-nation &rank) List of countries by Corruption Perceptions Index A higher score means less (perceived) corruption. This list is published w.r.t corruption among public officials and politicians".The organization defines corruption as "the abuse of public office for private gain". Individual has to strive hard to get a electricity or water connection, clearance of a residential plan, lodging a report with the police etc. Officials often steal state property. In Bihar, more than 80% of the subsidized food aid to poor is stolen. Political system, police, judiciary system etc are directly and indirectly associated with the bureaucracy. A judiciary system which was till now clean, the termite of corruption is now eating this system also. Chief justice of India, member of parliament have made recommendation 4 removal of Karnataka high court judge who is said to have misused his power of chair but he is not yet prosecuted .The corruption in judiciary system is also attributed to no. of pending cases, shortages of judges and complex procedures. The cancer of corruption is spreading like wildfire. The Indian politics & the system is a root cause of all the maladies. The list of scams involving public servants, politicians is an unending one. Our police system is also a corrupt one. A recent survey suggests police officials across the country earn more than $400 million through bribes offered by truck drivers. Many reports, commissions recommended the modernization of police force but bz of our corrupt brtic practice it is yet under the review process.(slide) Because of such red tape ,corrupted bureaucracy "It is impossible for a common man to own a roof, provide good education to his children and hope for a peaceful retirement in India using normal and honest means.” Bz of this there is poverty, illiteracy, terrorism, unequal distribution of income. For this, • The nexus of bureaucracy with the political corruption, lack of accountability and low regulatory controls, rigidity of bureaucracy could be various reasons behind existence of corrupt practices within the Indian bureaucratic system. Dismantling the bureaucracy would be the first step in fixing the problem of corruption in India, followed by reduction of the public sector.


Large no of laws means more the corruption and more delayed the process and hence there should be simplification in the legislation. Hence there would not be delay in registration, starting a venture and other similar type of processes. There should be many technocrats/specialist to manage and regulate the bureaucracy, psu’s than officers without more intervention from the government. In India the procedure to prosecute any high level government officials, judges of judiciary system is very much complicated and time consuming. Till today no or very less judges who said to have misused their power have been prosecuted bz of complex process. There should be reform in the legislation for such act. There should be lenient labour regulations, reform in lagging states. There should be the minimum level of hierarchy in the governing system which will lead to faster results and least corruption. Separate courts to deal with the matter of corruption and expediately give the judgement of the same and that should be time bound.

So at the end I would like to sum up ma presentation with the conclusion that, it’s a time to say good bye to the suffocating, inefficient, corrupted bureaucracy if India wants to lead the league of most powerful countries in the world. Parliamentary form of Government 100 maise 99 bayieman

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