Indian bureaucracy the worst in Asia, finds study

11 Jan 2012

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India's bureaucracy is the worst in Asia and among the worst in the world, according to a study by Political & Economic Risk Consultancy Ltd, which focuses on companies operating in east and south-east Asia.

India has a rating of 9.21 rating out of 10 – near the bottom of the table, according to the Hong Kong based business analyst.

India fared worst than Vietnam (rated at 8.54), Indonesia (8.37), Philippines (7.57) and China (7.11), said the report released today.

Singapore was on top as is usually found in such surveys, with a rating of 2.25. It was followed by Hong Kong (3.53), Thailand (5.25) Taiwan (5.57), Japan (5.77), South Korea (5.87) and Malaysia (5.89).

The report said India's inefficient bureaucracy was largely responsible for most of the biggest complaints that business executive have about the country. It mentions two factors that need little introduction to the average Indian – corruption and poor infrastructure.

The report also highlighted a swingeing and unreliable tax regime as well as environmental and other regulations that could make doing business in India "so frustrating and expensive".

It said dealing with the court system in India was an unattractive option for companies, and they would best avoid it. Bureaucrats are rarely held accountable for wrong decisions and it is extremely difficult to challenge them when there were disagreements.

"This gives them (bureaucrats) terrific powers and could be one of the main reasons why average Indians as well as existing and would-be foreign investors perceive India's bureaucrats as negatively as they do," the report said.

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