India Inc says scams, corruption hitting growth

India’s top industrialists appear increasingly concerned over procedural bottlenecks, corruption, delayed reforms and the logjam in Parliament impeding long-term growth and driving investments away from the country. HT reports. Read:Open letter I |Letter II

India’s top industrialists appear increasingly concerned over procedural bottlenecks, corruption, delayed reforms and the logjam in Parliament impeding long-term growth and driving investments away from the country.

In an “open letter” to “leaders” on Monday, 14 eminent corporate captains and policy analysts described the nexus between certain companies, politicians, bureaucrats and power brokers as the “biggest threat” to the economy.

The eminent citizens, including Deepak Parekh (chairman, HDFC), Azim Premji (chairman, Wipro), Jamshyd Godrej (chairman Godrej and Boyce) and Bimal Jalan (former RBI governor), said citizens and small entrepreneurs face "continuous daily harassment" in almost every interface with government officials.

This was the second letter by them since January highlighting issues concerning governance deficit and corruption.

“We support the need for urgent passage of a well-crafted lokpal bill by Parliament,” the group wrote, adding that the draft bill could help deal with “episodic corruption” but is unlikely to have any significant impact on “day-to-day corruption, which is insidious and demeaning”.

Prime Minister Manmohan Singh and finance minister Pranab Mukherjee have both brushed aside accusations of policy paralysis, but investors don’t appear convinced. Monday’s letter hints that spats between ministers and the recent scams have blurred the government’s focus away from key reform initiatives. Read:Open letter I |Letter II