The quality of Indian politics has reduced drastically over the course of the past two decades. This happened because of the changing modern-day realities that averted many political figures from living up to societal expectations (Sinha & Wyatt, 2019). Even though there are numerous policy projects pushed by interested parties, most politicians can be seen as obstacles to serious reforms due to the growing levels of corruption and greediness. Another problem that strikes India and makes it harder to run business is the existence of politicians with criminal records. These issues destroy the democratic process and make it exceptionally hard for people to avoid unfair politics and remain honest voters. For many Indian officials, the oath of office is only required to gain access to the opportunities of enriching themselves. The democratic process currently suffers from constant bribery and inconsistent decision-making.
This increasing level of corruption deprives many business owners of an opportunity to generate viable change in the region. No serious electoral reforms have been introduced during the past three decades (Kohli, 2021). It shows how India gets exposed to political instability recurrently, having to cope with unmet expectations and unfair treatment of voters. At the times when reforms eventually occur, they are mostly aimed at the development of enrichment schemes. From interest rates to tax payments, Indian politicians expect to control everything. This is one of the main reasons why the political background in the country is so hostile toward different businesses that are owned by unpretentious civilians. One possible upside to the damaged political environment is a high chance of economic reform in the future.
Criminal Background
There are two specific criminal issues that affect India and avert business owners from expanding their operations. The first problem is counterfeit currency, as there are numerous individuals across India who deploy fake money and support organized white-collar crime (Yadav et al., 2021). The proportions of counterfeited currency keep growing across the globe, with India being one of the leaders in the field. For local and international business owners, this is a crucial setback because genuine business transactions get jeopardized. Indian criminals get access to innovative equipment that makes it even harder to spot differences between authentic and counterfeit money. Thus, the lack of proper security makes it practically impossible to stop criminals and makes India one of the potential prospects for business expansions (Yadav et al., 2021). Complex designs, color shifts, security threads, holography – this is only a few of the advanced technologies used by Indian criminals to generate fake currency.
Nevertheless, India is mostly known for its scammers and credit card frauds that extend beyond the country’s borders. Indian law enforcement agencies cannot protect businesses and civilians because the number of scammers grows in a geometric progression (Trivedi et al., 2020). The number of false credit cards shows that the country’s financial institutions are not doing enough to prevent fraud and counterfeiting either. Therefore, the criminal background of Indian business can be described as sophisticated and challenging. Credit card frauds are quickly taking over the country because wrongdoers have the capability of reproducing and re-encoding counterfeited cards (Mittal & Tyagi, 2020). Eventually, security measures established by the respective agencies quickly become outdated. Local businesses and overseas clients might not be able to overcome this challenge quickly as most scammers are always one step ahead.
Legal Background
The legal background of businesses in India revolves around two additional issues as well. The first problem to be highlighted is the existence of numerous Indian companies that benefit from offshore listings. In other words, their asset valuations are externalized in order not to display possessions to the local government (Sinha & Wyatt, 2019). This is a legal issue because flipped entities raise money from numerous investors around the globe without having to report it to any governmental entity. Thus, offshore jurisdictions protect dishonest business owners from being discovered by governmental agencies. At the same time, Indian business owners list offshore markets without any limitations. It means that many local companies can be found on international stock exchange lists without shifting outside India (Kohli, 2021). Regardless, offshores are recurrently utilized to cover unlawful monetary operations and enrich dishonest business owners.
Another legal problem that has to be discussed when outlining India’s business potential is distressed debt. Despite the enormous expectations, business owners from neighboring and overseas countries cannot benefit from the Indian market. It happens because most local stakeholders keep criticizing the government’s actions without proposing any alternative solutions (Pandey & Sahu, 2019). Accordingly, there are numerous cases that cannot be resolved due to corporate debtors having too much room for maneuvers. In turn, business owners are overly pressed by the reduced efficacy of corporate operations. There is no resolution plan at the moment that would attract more potential investors to India and help them develop a positive relationship with lenders. Therefore, the number of corporate debtors keeps on growing while the Indian government seems reluctant to predicting and preventing economic and political crimes.
References
Kohli, D. (2021). Elections, lobbying and economic policies: An empirical investigation across Indian states. Constitutional Political Economy, 1-46. Web.
Mittal, S., & Tyagi, S. (2020). Computational techniques for real-time credit card fraud detection. In Handbook of Computer Networks and Cyber Security (pp. 653-681). Springer. Web.
Pandey, K. D., & Sahu, T. N. (2019). Debt financing, agency cost and firm performance: Evidence from India. Vision, 23(3), 267-274. Web.
Sinha, A., & Wyatt, A. (2019). The spectral presence of business in India’s 2019 election. Studies in Indian Politics, 7(2), 247-261. Web.
Trivedi, N. K., Simaiya, S., Lilhore, U. K., & Sharma, S. K. (2020). An efficient credit card fraud detection model based on machine learning methods. International Journal of Advanced Science and Technology, 29(5), 3414-3424. Web.
Yadav, R. K., Valecha, P., & Paliwal, S. (2021). Counterfeit currency detection using supervised machine learning algorithms. In Machine Learning for Predictive Analysis (pp. 173-178). Springer. Web.