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Regulatory Cost Weighs on India's CEOs as Modi Fights Corruption

  • Compliance biggest challenge, according to top 100 executives
  • Scrutiny clashes with India’s ease-of-doing-business ranking
Narendra Modi is aiming to take India into the top 50 countries in terms of ease of doing business.

Narendra Modi is aiming to take India into the top 50 countries in terms of ease of doing business.

Photographer: Paul Miller/Bloomberg

Companies operating in India see regulatory compliance as the biggest cost overrun in the next two years, a sign that Prime Minster Narendra Modi’s efforts to curb corruption may be clashing with his plans to improve ease of doing business in Asia’s third-largest economy.

Compliance and regulatory scrutiny ranked as the biggest challenge, up from fourth position two years ago, according to a survey conducted by law firm Baker McKenzie of India’s 100 top executives of mid- to large-sized companies. The survey, released on Tuesday as part of the firm’s Doing Business Globally India Week, was conducted during November and December last year.