Assessing business bribery risk for foreign companies operating in india – lexology

India ranks 185 th out of 197 countries in the TRACE Matrix, which measures business bribery risk in countries around the world. Companies with high profit margins Both low-level administrative graft and high-level “crony capitalism” make addressing corruption in India particularly difficult.

Bureaucratic or administrative corruption are among the most visible forms of corruption specific to the Indian market.


High profit items to resell A host of regulatory hurdles in India provide a fertile ground to extort bribes from businesses. Small business with low investment and high profit Many companies utilize bribery as a way to expedite paperwork or bribe their way around complicated regulations. Small business high profit in india In doing so, they sustain a system of bribing officials for continued favors. High profit margin In the TRACE Matrix, India has a score of 92 in the domain “Business interactions with the Government” indicating a very high regulatory burden and expectation of bribes

Foreign companies have attracted severe fines and damage to their reputations for violation of anti-bribery laws in India. High profit service business For example, Oracle Corporation, Dow Chemical Company and Louis Berger International Inc. Low investment high profit business in delhi were charged in the United States for violations of the Foreign Corrupt Practices Act (FCPA). Low cost business ideas with high profit in india Indian regulatory bodies have also stepped up oversight measures. High profit business in india In 2015, India’s anti-corruption watchdog, the Indian Central Vigilance Commission (CVC), summoned Wal-Mart Inc.’s country head over allegations of bribery.

Infrastructure and real estate, extractive industries (oil and gas, mining), pharmaceuticals, and aerospace and defense are considered among the highest-risk sectors. Low cost high profit Corruption in the aerospace and defense sector is a matter of particular concern, as expected growth in the industry and potentially large contracts create a situation ripe for bid-rigging, kickbacks and bribes. Items with high profit margins In the extractive sector, it is reported that both privately and publically held companies have paid bribes, under-invoiced for exports and used fake permits in order to obtain business.

It is important for foreign companies operating in India to have a robust compliance program. High profit home business Companies, irrespective of their sector, should annually upgrade and audit their compliance procedures. Small scale business with high profit in india They should also make sure that their employees in India are trained and well-prepared for bribery risks. High profit online business Anonymous hotlines for whistleblowers can also prove useful in shedding light on any potential wrongdoing. High profit products to sell online Finally, companies should also pay special attention to their business partners in the region to ensure that they are reputable and conduct their business according to the company’s compliance standards.

Companies can also work with TRACE Certified firms, which have completed a rigorous due diligence process based on international standards, including training and continuous daily screening against international sanctions and enforcement lists.

For companies seeking to build compliance programs, TRACE International offers a membership program that includes online anti-bribery training for employees and intermediaries, guidance on local laws and compliance best practices, complimentary attendance at workshops, and access to other tools and resources designed to make compliance with anti-bribery laws easier and cost-effective. High profit industries Companies may also refer to TRACE public, the first global register of beneficial ownership information, which allows companies to share and search for beneficial ownership information at no cost. Small business with high profit The database supports the efforts of companies seeking to conduct business ethically.

Several local non-profit organizations, such as Transparency International India and iPaidaBribe, have achieved success in spurring grassroots efforts to combat bribery and corruption in India. High profit farming The World Economic Forum, the OECD and also the United Nations Office on Drugs & Crime (UNODC) have done extensive work on bribery risks in India.

In 2007, te Central Vigilance Commission (CVC) adopted Transparency International‘s vigilance tool, the Integrity Pact (IP), in major government contracts. Low investment business with high profit An IP is an agreement between parties to ensure a corruption-free bidding process. High profit selling In 2015, the CVC called for adoption of IPs in public sector banks, insurance companies and financial institutions. High profit business ideas Private-sector companies in India, however, are outside the purview of IPs.

The Indian government is trying to deliver on its promise of “minimum government and maximum governance” – intended to minimize the massive bureaucratic and administrative system in the country. High profit greenhouse crops There is reason to believe that progress has been achieved in this regard, with India recently moving up four places to 130 th in the World Bank’s 2016 Ease of Doing Business index.

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