With the culture of nepotism that thrives in India, I don't see why private businesses would be immune from it. In many cases Government run organisations are run better at some level, not necessarily over all.
The Government has well established merit based selection programmes through UPSC. While in itself, it can not ensure fairness and efficiency, private organisations and businesses may not even have that.
I can see why, what B7480437B is saying is true.
Most people in India, whether a Government employee, or not, usually siphons off something for him/herself in one form or another. Taking advantage of one's position is a matter of pride, in India. What I find ironic is that people complain and call for campaign against corruption, but are not willing to give it up themselves.