Context:
The Corruption Perceptions Index (CPI) 2025 shows India’s stagnant score of 39, reflecting persistent governance challenges despite economic growth.
Key Highlights:
- CPI 2025 Findings
- Global average score: 42/100 (declining trend).
- India’s score: 39/100
- Rank: 91 out of 182 countries
- Economic Impact of Corruption
- Estimated cost: 0.5%–1.5% of GDP annually.
- Leads to resource diversion and inefficiency.
- Governance and Regulatory Issues
- Over 26,000 imprisonment provisions in business laws → complex compliance.
- Encourages rent-seeking and bureaucratic discretion.
- Positive Developments
- Digital initiatives reducing corruption:
- Direct Benefit Transfer (DBT) → minimizes leakages
- GST → improves traceability
- RBI Digital Payments Index (516.76 in Sep 2025)
- Institutional Concerns
- Weakness in transparency, accountability, and institutional independence.
Relevant Prelims Points:
- Corruption Perceptions Index (CPI) → released by Transparency International.
- Measures perceived public sector corruption (score: 0–100).
- DBT (Direct Benefit Transfer): Direct subsidy transfer to bank accounts.
- GST: Indirect tax promoting formalization and compliance tracking.
- RBI Digital Payments Index: Measures digital payment adoption.
Relevant Mains Points:
- Governance and Economic Growth
- Corruption increases:
- Transaction costs
- Policy uncertainty
- Investment risks
- Hampers India’s ambition of becoming a $10 trillion economy.
- Institutional Weaknesses
- Need for stronger:
- Anti-corruption agencies
- Judicial efficiency
- Regulatory transparency
- Role of Technology
- Digital governance reduces:
- Human discretion
- Leakages in welfare
- However, requires data security and inclusivity safeguards.
- Ethical Dimensions
- Corruption reflects erosion of public trust and administrative ethics.
- Impacts equity and social justice.
- Way Forward
- Simplify regulatory framework and reduce compliance burden.
- Strengthen institutional independence (CVC, CBI, Lokpal).
- Promote e-governance and transparency tools.
- Encourage ethical governance and accountability culture.
UPSC Relevance:
• GS 2: Governance – Transparency, accountability, institutions
• GS 3: Economy – Investment climate, growth challenges
• GS 4: Ethics – Integrity, corruption issues