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Red tape and corruption continue to affect businesses in India.

According to a survey by the Hong Kong-based group, Political and Economic Risk Consultancy, India has the worst levels of excessive red tape.

It states that starting a business and enforcing contracts in India is extremely difficult.

The overall freedom to start, operate, and close a business remains restricted by India's regulatory environment, said the index of Index of Economic Freedom jointly released earlier this year by The Heritage Foundation and The Wall Street Journal.

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Starting a business takes an average of 30 days, compared to the world average of 35 days. Obtaining a business license requires more than the world average of 18 procedures and 218 days, the study states.

The survey of more than 1,300 business executives in 12 Asian countries said Indian bureaucracy is the 'most stifling in the world'.

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The report ranks bureaucracies across Asia on a scale from 1 to 10, with 10 being the worst possible score. India scored 9.41.

India scored 9.41, followed by Indonesia (8.59), the Philippines (8.37), Vietnam (8.13) and China (7.93).

As per the survey, Singapore and Hong Kong with scores of 2.53 and 3.49, respectively, have the most efficient bureaucracies.

The report further warns that the inertia generated by a stifling bureaucratic system will, in the medium term, prevent India matching the growth rates of China, its competing economic rival in Asia.

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The report also says there is a strong link between bureaucracy and corruption, and a widely held belief that bureaucrats are selfish and highly insensitive to the needs of the people they are supposed to help.

A recent survey of the Indian bureaucracy had found large numbers of civil servants complaining of undue political interference.

They also fear that anyone questioning the system would be transferred to obscure postings.

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