One issue in India is that local governance at level of cities and towns is very weak(very few know who the equivalent of the mayor of their city is). The state(as in say US states, not federal level) government basically runs the show.
So, the state government does woo corporations with incentives to come to their state, but once the company reaches the level of permissions and deals with local officials who are looking for a cut(and in general, it is hard to fire these officials), the companies have to face the bribes process.
You can transfer bureaucrats even if you cant fire them(and this does happen though sometimes for the wrong reasons). But the bribe network also involves local politicians.
The intractable issue is that the journey to power of the top leaders in the state government involves taking support of local level leaders who either have some local support base or money which can be used for campaigning. In return, these local leaders demand a cut of bribe money which the top leader is obliged to allow or else risk losing their support.
Of course, this is not an all encompassing explanation and some leaders are much worse(corrupt far beyond any political necessity) and some better.
So, the state government does woo corporations with incentives to come to their state, but once the company reaches the level of permissions and deals with local officials who are looking for a cut(and in general, it is hard to fire these officials), the companies have to face the bribes process.
You can transfer bureaucrats even if you cant fire them(and this does happen though sometimes for the wrong reasons). But the bribe network also involves local politicians.
The intractable issue is that the journey to power of the top leaders in the state government involves taking support of local level leaders who either have some local support base or money which can be used for campaigning. In return, these local leaders demand a cut of bribe money which the top leader is obliged to allow or else risk losing their support.
Of course, this is not an all encompassing explanation and some leaders are much worse(corrupt far beyond any political necessity) and some better.