Deepening global corruption as a pointer for India
The Corruption Perceptions Index (CPI) 2025 by Transparency International shows a global decline in perceived integrity, with the average score dropping to 42 out of 100. India ranks 91st out of 182 countries with a score of 39, showing stagnation over the past decade despite economic growth. Corruption incurs significant economic costs, estimated at 0.5% to 1.5% of India's GDP annually, diverting resources from crucial sectors. India's complex compliance architecture, with numerous imprisonment provisions in business regulations, also contributes to rent-seeking. While challenges exist, positive trends like digital public infrastructure, e-procurement, and GST network have reduced leakages and increased formalization, demonstrating that technology can reduce discretion.
Key Points
- The Corruption Perceptions Index 2025 indicates a global decline in perceived integrity, with India stagnating at a score of 39 and rank 91.
- Corruption imposes significant economic costs, estimated to be between 0.5% and 1.5% of India's GDP annually, hindering development.
- India's complex regulatory framework, including numerous imprisonment provisions in business regulations, creates opportunities for rent-seeking.
- Digital public infrastructure, e-procurement portals, and the GST network are positive counter-currents reducing corruption and increasing formalization.
- Sustained improvements in transparency, judicial efficiency, and regulatory simplification are crucial for India to match its economic ambition with governance evolution.
Exam Facts
- India's CPI 2025 score is 39, ranking 91st out of 182 countries.
- The global average CPI score has dropped to 42 out of 100.
- Corruption costs are estimated at 0.5% to 1.5% of India's GDP annually.
- The article mentions the Biopharma SHAKTI initiative with an allocation of ₹10,000 crore.
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