A staggering 72 percent of the respondents believe that management is likely to cut corners to meet targets, said the The Global Fraud Survey by Ernst & Young. Also, 70 percent of India respondents to the survey think that bribery and corruption are widespread in the country.

Even allowing for a recent slowdown, the Indian economy continues to grow faster than many other G20 countries. However, with Indian GDP growth rates below the trend of the last decade, pressure on companies to meet expectations is rising, increasing in turn, the risk of fraud, bribery and corruption, the survey said.

It noted that although India continues to be a favored destination for foreign investment, with 71 percent of respondents to “our 2012 India Attractiveness Survey keen to invest in the country, growth opportunities are constrained by regulation and bureaucracy”.

It added that the combination of a market with significant investment potential and a high level of bureaucracy has resulted in “many seeking to bypass, accelerate or influence decisions”.

Given the extensive media coverage, it is not surprising that fraud, bribery and corruption are seen as significant risks in India.

“With fraud, bribery and corruption risk so high on the domestic and international agenda, it is essential that companies with a presence in India actively address these risks,” it said.