Sunday, March 6, 2011

"Corruption is certainly not a specialty in which India will win the gold medal."Really big concern in India is regulation n tax treatment-Fitch6/3/11

6 Mar, 2011, 06.51PM IST,PTI

India not as corrupt as China and Russia: Fitch



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NEW DELHI: India is not as corrupt as China and Russia, according to the global credit rating agency Fitch.

The country, however, suffers from excessive regulation and tax laws, which is concern for foreign investors, Fitch Group Managing Director for Corporate Rating Richard Hunter told PTI in an interview.

"We will certainly rank India well below Russia and China when it comes to concerns about corruption. Really big concern about India is regulation and tax treatment," he said.

These comments come at a time when the nation is facing a plethora of corruption cases relating to allocation of 2G spectrum, conduct of Commonwealth Games , allotment of flats in Adarsh Housing Society and Devas-Antrix deal.

Hunter further said that the recent corruption cases have not dent the confidence of investors in India, adding that "Corruption is certainly not a specialty in which India will win the gold medal."

However, he said, domestic and foreign investors are concerned about the burdensome regulatory regime in India.

"Corruption is something that does deter investors much more in China. There is respect for Indian legal system," he said.

Hunter said the rating outlook for most Indian companies is stable for the current year.

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