The survey, carried out by the Political and Economic Risk Consultancy (PERC), asked expatriate business executives to rank the bureaucratic efficiency of 12 key locations in Asia on a scale from one to 10, with 10 being the lowest possible score.
It concluded that red tape was a constant problem for citizens and a frequent deterrent for foreign investment.
India was ranked as having the worst bureaucracy, with a score of 9.41, followed by Indonesia (8.59) and the Philippines (8.37.)
The location ranked as having the most efficient bureaucracy was Singapore, with a score of 2.53, followed by Hong Kong with 3.49.
PERC said that government bureaucracies in some Asian countries had become "power centres" in their own right, allowing them to resist efforts toward reforms by politicians and appointed officials.
Dr Gareth Price, head of the Asia programme at international think tank Chatham House, said that India’s ranking in the survey was due to a number of factors. “Firstly, in a country with around 1.2 billion people, there are only 15 million government employees in India, which isn’t really enough for a smooth-running bureaucracy.
“Furthermore, India’s bureaucracy is based on complicated and antiquated rules, which unfortunately for expat businessmen, many inspectors and government officials have a vested interest in leaving as they are. Old laws are rarely repealed, so if the government wants to, anything can be shut down. It’s certainly a system you’ll need advice on to get your head round.”
“By contrast, Singapore has made a real effort to simplify its bureaucracy, and its popularity with businessmen in this survey is the result.”
PERC said that dealing with bureaucratic inefficiency “can be one of the most frustrating experiences for any Indian, let alone a foreign investor”.
The survey’s findings echoed the results of the World Bank’s 2010 survey on the ease of doing business. In this survey, Singapore and Hong Kong were listed among the top three countries, with India ranked at 133 out of 183 countries.
A total of 1,373 middle and senior expatriate executives took part in the 2010 survey.
* Read Emma Hartley's blog about this story.
Stephen Clarke
Chelsea Girl in China
Anna Nicholas
Sebastian Doggart
Annabel Kantaria