Corruption Risks in India: A Reality Check for Investors | Doing Business in India | Episode 17

Corruption risk is not optional when doing business in India—it is structural. India ranks 93rd on Transparency International’s Corruption Perceptions Index (2023), and exposure ranges from routine facilitation demands to more serious forms of rent-seeking. Ignoring this reality is not a viable strategy for any serious investor. In this episode of the Veyrah Law Series, we examine how corruption risk actually manifests in practice and how it varies across sectors. Businesses that require frequent physical interaction with government systems, such as land acquisition, permits, and inspections face significantly higher exposure, whereas digital-first models and regulated financial sectors typically encounter lower day-to-day friction.

The discussion also addresses the international legal dimension, including the extraterritorial reach of the US Foreign Corrupt Practices Act and the UK Bribery Act, under which companies may be held liable for bribes paid by third-party agents, even in the absence of direct knowledge. The key legal position is clear: ignorance is not a defence.

The central takeaway is that managing corruption risk requires acknowledging the operating environment while maintaining a non-negotiable commitment to integrity. Businesses that fail to implement robust compliance frameworks face significant criminal and regulatory exposure across jurisdictions. Conversely, those that structure their operations to minimise government touchpoints, rely on professional intermediaries on fixed-fee arrangements, and maintain detailed records of official interactions are better positioned to operate effectively within the Indian market.