Corruption Mars India's Progress

The time when India got her independence many countries in the Asian continent were nothing but mere bushes. However, several of them are reckoned with veneration at the present juncture in the international continuum. There has been some grave reason for this failure of India, a question that has roamed in the air of the Indian political and power corridors. Now no longer you will have to go the wilderness for an effective answer! The internationally acclaimed professional services firm Ernst and Young (E&Y) in its latest report has denoted that what ails India is its scanty cash reserve to finance its infrastructural needs. On the other hand there is also a great predominance of high corruption levels and bureaucratic hurdles that have made the advent of the international financing almost difficult.

According to its latest report Ernst and Young (E&Y) said, "Unlike China, India does not have enough cash to self-finance its considerable infrastructure wish-list, although the country boasts of USD 190 billion in foreign exchange reserves to leverage project funding." To its assessment along with the examination of trends in infrastructure and finance, these impediments have enough possibility to obstruct India's transformation from a mere third world country to an upcoming superpower. In this respect, it is to be mentioned that on the very last year the honorable Prime Minister Dr. Manmohan Singh emphasized on the need of USD 320 billion as investment for the sake of the development of infrastructure sector over a stipulated period of next few years. But from the early 90's the chariot of globalization which has been moving incessantly through public-private partnerships allowing up to 100 per cent of foreign equity in projects is slowing down its pace. The chief reason behind this can be the presence of weak regulatory controls and deliberately created delays on the part of the bureaucracy.

Meanwhile, the World Bank witnessing Asia's infrastructure needs due to the emergence of China and India, has predicted there is the need of one trillion dollar over the next five years.