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India biz finds it difficult to deal with Govt: Survey

business Updated: Dec 08, 2011 15:34 IST

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India may have come a long way from the 'licence raj' days, but two-third of businesses here still find it difficult to deal with the government due to a 'structural rigidity' in its process, a survey has found.

The businesses now expect the government to aggressively push for 'process reforms', in addition to the reforms related to economic policies and regulatory framework.

According to the survey conducted by global consultancy firm Grant Thornton, India has come a long way in the past two decades, leaving behind the days of 'license raj', but businesses still face challenges like lack of transparency, governance and corruption.

As per the survey, a vast majority (67%) of respondents find dealing with the government "difficult" as they still face challenges in their dealings with the government and bureaucracy.

The India-specific report draws on survey results from Grant Thornton's annual International Business Report (IBR) --an international survey of the opinions of medium to large privately held businesses (PHBs) and of a small proportion of small to medium listed companies.

Commenting on the findings, Grant Thornton India Partner Advisory Services GV Subrahmanyam said that India still ranks very poorly in global rankings with respect to 'ease of doing business index', and "structural rigidity" is one of the biggest challenges being faced by the government today.

The survey findings come in the wake of the government putting the foreign direct investment (FDI) decision in multi-brand retail on hold till a consensus is evolved among various stakeholders.

This has raised doubts in the corporate world as to whether the government can resume the much needed policy pragmatism.

The survey noted that the government was invariably expected to push reforms on policy and legal fronts, but businesses are now more concerned about "process reforms".

"The government is not only expected to rationalise regulatory frameworks but also the processes that may impact the growth and survival of businesses," the report said.

Grant Thornton India Partner, Advisory Services, Vikesh Mehta said that "as a country, we need to carefully define the role of government so that it can balance its respective key role as a catalyst for growth and a regulator of the economy".

The Grant Thornton IBR provides insight into the views and expectations of over 11,000 businesses per year across 39 economies.