BUSINESS LOBBYING IN INDIA

In India the role of the government has changed to that of a referee and the rules of the game are in a high state of flux and evolution. Dealing with government is like walking on shifting sands. Policy is determined by political exigencies and these can change from day to day. Coalition politics with its continous push and pull results in changing policies. Despite liberalization, there is still a great deal of government interference in business. Determining what will work involves a rather quirky mixture of enormous expertise and experience, phenomenal effort and a puzzling element of what Indians called 'tukke basi' which translates best to mean 'taking a gamble'.

Considering the seedy, backroom and briefcase passing connotations the word lobbying has acquired in India, the new coined term for the practice is 'Public Policy Engagement' with the prime purpose being to uphold fair competition between industry players.

There is no mechanism in India, the world's largest democracy to bring accountability to lobbying, and publicly reveal the lobbying positions of companies and the money spent. Self-regulation in lieu of legislation is often proposed by Indian industry. In India, nobody knows the lobbying position of companies, leave alone looking for consistencies in lobbying positions and their impact on issues on sustainable development. There is no legal framework for lobbyists even if the practice is technically not illegal. Perhaps the closest approximation to any kind of law governing lobbying in India is Section 7 of the Prevention of Corruption Act. But even this section is a convoluted one where the onus on the accused public official to prove that he was not offered a 'gratification' to influence his policy decision. The practice therefore continues to be a largely surrepticious one, a quintessentially cloak-and-dagger affair between key players- political parties, bureaucrats, advocates, business interest groups and communication experts. Indian corporate lobbyists insist that hey act as a 'bridge' between companies and the government. Many even brand themselves as 'advocates' or 'channels' which, hey say, helps their clients better understand the country's policy environment. Many other lobbyists come in the avatar of 'external affairs managers' and 'environment management experts'. These usually operate via public relations outfits discreetly serviving their client's lobbying needs. In fact, most sizeable Indian companies nowadays maintain dedicated teams for lobbying their cause with the authorities.

In order to make the field of lobbying more transparent, the Indian Planning Commission has appointed an expert committee- comprising industries and government secretaries to engage with the industry associations and seek their views on making lobbying transparent and representative. Pro-regulation lobbyists point out that the government needs to expose corruption through greater transparency telling people who influenced policy and at what cost.

The exponentially growing Indian economy, expected to touch over 7.5% in 2012 and a rapidly burgeoning domestic market present mouthwatering opportunities for global business to do business with India. They are all eyeing the great Indian growth story with considerable interest. This will push more and more companies to engage lobbyists who can directly interface with politicians and bureaucrats and push their agendas. Thus, lobbying will continue to remain integral to Indian businesses and politics- legal or not. Doing away with it or making it illegal is not an option. As India is in the process of  establishing a larger institutional framework, the government needs creative inputs from various experts. As long as lobbying does not lead to 'policy or regulatory capture', climaxing in the government or regulators getting so influenced by lobbyists that it results in an iniquitous regulatory framework, lobbying should be allowed. However, given the nuanced complexities of India's polity, and the push-pull dynamics of competing interests, this task will require the consummate skills of a juggler!