Should Business Lobbying Be Made Legal in India? | MBA College in Bangalore with Business Analytics

Posted by Susmitha TP On 28/05/2022 11:04:14

In many modern democracies throughout the world, lobbying has been one of the most scandalous practices, and India is no exception. A lobbyist's job is to provide information to politicians, elected members of the parliament or legislature, and other government officials, specifically about policy-related topics, in the hopes of influencing their actions and choices to suit their interests. Corporations, associations, advocacy groups, and intellectuals are among the groups and entities that engage in lobbying.

While the profession of lobbying has clear legal legitimacy in the United States and Europe, India, despite being a direct beneficiary of its effects, appears to have avoided adopting a legal framework to address the nuances of lobbying because it best serves the interests of many to keep it in the grey zone. In fact, looking at the ground reality in India, it is easier to connect lobbying and bribery due to the widespread belief that corruption is required to get one's work done through the governmental system. MBA College in Bangalore with Business Analytics 

In India, business lobbying should be made legal. Everyone should have the right to form legalised coteries and pursue their political goals in the country, from major corporations to small groupings.

The current state of lobbying in India

Unlike democracies like the United States and countries like the United Kingdom, Australia, and others, there are no regulations in the country that recognize lobbying as a legitimate profession. This is not to say, however, that the industry does not exist in the world's largest democracy. Lobbying has long been viewed as a tool for industry organizations, companies, and pressure groups to engage and discourse with the government prior to the presentation of the National Budget each fiscal year.

Institutions such as the Federation of Indian Chambers of Commerce and Industry (FICCI), the Associated Chambers of Commerce in India (ASSOCHAM), and the Confederation of Indian Industry (CII) have worked for decades to help their members by influencing key policy decisions. These discussions typically happen in government offices, when specialists try to persuade leaders to embrace a policy that they propose, demonstrating how it will benefit a bigger number of people. This is also advantageous to the government, as lobbyists provide insight into public opinion.

Another disadvantage of the lack of a legal framework for lobbying in India is that various foreign and domestic companies already operate as corporate lobbyists, mainly unregulated because the legislation does not define what constitutes lobbying. As a result, there is a distinct lack of a free and transparent procedural system in the country, making lobbying an immoral practice.


Need for laws governing lobbying in India

The controversies discussed above demonstrate that Indians have a negative attitude about lobbying. However, simply because there are no legislative regulations in place, lobbying as a whole cannot be considered immoral or unethical. So far, the only legislative effort has been made in 2015, when Kalikesh Narayan Deo introduced a restricted 'The Disclosure of Lobbying Activities Bill, 2015,' which defined lobbying as a 'conversation with payment,' thereby comparing it to bribery. Furthermore, under the Prevention of Corruption (Amendment) Act, 2018, payments to public officials are similar to corruption and should never be legalised. Best MBA college in Bangalore

Separate rules for lobbying in India will help to clear the air around these issues because: 

  • It would make the lobbying sector public and open, making it accountable to the people. 
  • The data obtained from such disclosures can be used for research and analytical reasons in examining evolution or, more specifically, the course of any legislation from its writing to becoming a law, similar to Western laws.
  • Finally, legalizing this practice will authenticate and legitimize lobbying, which is an essential aspect of law and policymaking because no legislator can be expected to know everything about governance and citizen welfare.


The general populace in India has had enough of corruption. Making commercial lobbying legal will make political decision-making more equitable. Business leaders have an excellent understanding of the economy's most pressing challenges. They are significantly superior to others who were raised with less progressive views. A major goal is a development. We will never achieve superpower status if we fall behind. Infrastructural issues and challenges will continue to plague our villages. Inequitable growth will continue to plague our cities. Only if it strives to make a difference is change beneficial. However, attempting is insufficient. Change is best when the desired result is realised, not just a pipe dream. Legalizing business lobbying will be a step toward this.


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