Davos 2013: Corruption in India leads to loss of investor’s confidence, says Huguette Labelle

The issue of corruption took centre stage on a panel discussion on BRIC countries with Transparency International warning that corruption in these countries can result in social instability and lack of investor confidence.

Amnesty International Germany chair Huguette Labelle said the large investment required for India’s infrastructure development could create the grounds for more corrupt practices. “Construction activities are often accompanied by corrupt practices,” she said.

Labelle said BRIC countries had the institutions to tackle corruption but they needed to focus on implementation. She said these countries were early ratifiers of the UN Convention against Corruption but it was important to implement them. She urged India and other BRIC countries to commit to the OECD convention against corruption.

Commerce and Industry Minister Anand Sharma said corruption had existed all over the world and it would be unfortunate to single out one country. “India has an assertive judiciary and well established institutions to investigate instances of corruption,” he said.