Current Business Scenario in India

The 20^th century business environment in India was driven by the government, but the 21^st
century business across the world, including India, is governed by the free
market economy. Economic crime is emerging as a bigger threat than before.
Amongst the growth unethical business practices in India, E&Y reports the
incidence of fraud becoming an increasing menace. 55% of Indian companies in
the past two years have reported incidents of fraud and a
PricewaterhouseCoopers (PwC) study (2014) indicates that more than 1 in 3
organizations are impacted by economic crime. Bribery and corruption poses the
greatest threat to global businesses because of the fewer regulations and
less-consistent enforcement of those regulations. Every region reported a
significant number of incidences of bribery and corruption. The PWC report
(2014) reveals that 27% of all respondents who reported economic crime
experienced corruption during the survey period, making it the third-highest
crime specified and a relative increase of 13% from the 24% reported in 2011.

In 2013, the “Doing Business Report,” published by the World Bank ranked India low in terms
of transparency, equity and fairness. India was ranked low on transparency
meaning high on corruption, by Transparency International. This is a clear
indication of the internal business environment. Instances like these create a
bad environment and impact the reputation of companies. At another level, they
raise significant issues on governance for stakeholders.