How Does Lobbying Influence Government Policies in India?

Lobbying is a way for popular groups to exert influence on the government. There are many lobbying factions such as business organisations, NGOs, think tanks, and others that want to have an effect on how policies are framed and executed. 

Lobbying is sometimes confused with bribing, but it is not the same. It is often a public campaign run by organisations to exert pressure on the government to change or alter public policy decisions. 

In this article, we will discuss lobbying in India, how lobbying influences policies, and whether it should be legal or not. 

Lobbying in India

• In the US and Europe, lobbying has been made legal and is legitimised. In India, there is no such law that makes lobbying lawful. India’s lobbying industry is massive and has an effect on public policies. A legal mechanism and framework for lobbying can be beneficial for India as it will ensure transparency in how lobbying groups run. 

• Thus, if there are no laws for lobbying in India, the question arises of whether that makes it illegal. The answer is no. The law is silent on this issue. If a particular group tries to influence public policy through a social campaign for the greater good, it cannot be termed illegal if the group is not breaking a law. 

• There are no laws in India that legitimise lobbying in India. But that does not imply that lobbying does not happen in India. Many organisations and business groups try to influence public policy and legislation through lobbying. 

Business Lobbying in India: How Does Lobbying Influence Government Policies in India?

• The country does not have any legislation sanctioning lobbying’s validity as a lawful profession as it does in other democracies like the US, the UK, Europe, and others. However, this does not indicate that the industry does not exist in the world’s largest democracy.  Lobbying has long been seen as a way for businesses, corporations, and other interest groups to communicate with the government. 

• Institutions like ASSOCHAM (Associated Chamber of Commerce in India) and FICCI (Federation of India Chambers of Commerce and Industry) have worked for decades to help members by influencing key decisions and policy concerns. These groups have a significant impact on India’s policies. Professionals in government agencies argue for the adoption of a policy that they have proposed and how it benefits a broader group of people at these meetings which are not held in secret. The government benefits from this since lobbyists provide insight into public opinion.

• Many foreign and domestic corporations are currently operating as corporate lobbyists because of a lack of regulation in India about what constitutes lobbying. This is a detrimental side effect of the lack of a clear definition of what constitutes lobbying. As a result, lobbying is considered unethical in the country because of the lack of a transparent legal framework.

The Question of Legality of Lobbying in India

There is a perception in India that lobbying is the same as bribing or that it is unethical. However, the lack of legal regulations in the country cannot be taken as evidence that lobbying, in general, is immoral or unethical. 

Separate laws for lobbying in India are necessary to remove any doubts about its legality. The reasons for that are as follows:

• The industry will become more open and accountable to the public. The legalisation of lobbying could lead to the disclosure of all investments and expenditures made by these agencies in lobbying activities, similar to Western regulations.

• As a result of these disclosures, research and analysis might be done on how legislation evolves from its inception to becoming a law.

• Lobbying is an essential part of the legislative process since it is impossible for a legislator to have all of the necessary expertise and information about all aspects of governance and the well-being of citizens.

Lobbying Around the World

• Lobbying exists in various forms in many countries across the world, but it is mostly unrestricted despite the harm it does to the state’s careful legislative process. There are countries in the Organization for Economic Cooperation and Development (OECD) where lobbying is strictly regulated and legitimised by the legislation, such as the United States and Taiwan.

Other countries such as Australia and Canada have legalised lobbying as well, while countries like Israel, Poland, Hungary, Slovenia, and Lithuania have not. 

• The United States of America is home to one of the world’s largest and most vibrant lobbying communities because of the existence of a separate sector dedicated to influencing policy making and advocacy problems. The American Constitution recognises the right of ordinary persons to engage in lobbying on behalf of the issues and demands that they care about. Because of this, a number of public lobbyists have taken up the issues that affect citizens, and there is a sentiment to use lobbying to improve the difficulties that ordinary individuals confront.

Conclusion

In a vibrant democracy, lobbying can make the legislative process better. It can provide key inputs and insights to the government on public opinion along with research and valuable expertise. There is a clear need to have a legislative framework for lobbying that will change things for the better in India.