By Kalpana Sahoo
Introduction:
Corruption in India is a serious issue affecting the economy at central, state, and local levels. It slows development and weakens governance. Surveys by Transparency International showed that a majority of Indians have at some point paid bribes or used personal contacts for public services. In the 2024 Corruption Perceptions Index, India scored 38 and ranked 96th out of 180 countries, showing a high level of perceived corruption compared to global and regional averages.
Major causes include misuse of welfare schemes like MGNREGA, bribes in industries such as trucking, and undeclared assets found in India and abroad. Complex regulations, excessive bureaucracy, and lack of transparency in laws and processes further encourage corruption. While its extent varies across states, corruption continues to remain one of the biggest barriers to India’s progress.
Unveiling the root cause of corruption in India :
1. Lack of Transparency
Government decisions in areas like resource allocation, licensing, and public procurement often lack openness. This secrecy provides room for manipulation and personal gain.
Example: The Coal Allocation Scam (2012) involved the non-transparent distribution of coal blocks to private companies, causing a massive revenue loss to the exchequer.
2. Weak Institutions and Ineffective Legal Frameworks
Though India has bodies like the Central Vigilance Commission (CVC) and laws like the Prevention of Corruption Act, investigations and trials are often delayed, allowing guilty individuals to escape punishment.
Example: In the Bofors Scam (1980s), allegations of kickbacks in a defense deal dragged on for decades without final resolution.
3. Low Salaries and Poor Incentives
Many lower-level government employees earn modest salaries compared to rising living costs, which tempts them to demand bribes as a supplementary income.
Example: Citizens often report paying bribes in transport offices, municipal corporations, and land registration departments just to access basic services.
4. Bureaucratic Red Tape
India’s complex administrative system—with multiple clearances and lengthy paperwork—creates unnecessary delays. People resort to bribery to fast-track their work.
Example: In the License Raj era (pre-1991), entrepreneurs had to bribe officials to secure industrial licenses.
5. Political Interference
Politicians often misuse their influence over bureaucracy and institutions to gain personal or party benefits. High election expenses further push them towards corrupt practices.
Example: The 2G Spectrum Scam (2008) exposed how telecom licenses were allocated to private players at throwaway prices under political pressure, causing losses worth thousands of crores.
6. Cultural and Social Attitudes
Corruption has become socially normalized. Many people see bribes as an “easy way out” to avoid delays or legal procedures.
Example: A 2005 Transparency International survey revealed that over 62% of Indians had paid a bribe at least once to access public services.
7. Lack of Whistleblower Protection
Those who expose corruption often face threats, harassment, or even violence. Weak protection discourages people from reporting wrongdoing.
Example: In the Vyapam Scam (Madhya Pradesh, 2013–2015), several whistleblowers, journalists, and witnesses mysteriously died, creating fear among others.
8. Social and Economic Inequality
Poor citizens often pay bribes for ration cards, pensions, or hospital services, while wealthy individuals use corruption to gain favorable policies.
Example: In the Public Distribution System (PDS), scams involving diversion of food grains meant for the poor highlight how inequality fuels corruption.
9. Political Funding and Black Money
Elections require massive spending, but legal funding channels are insufficient. Politicians therefore depend on black money and business favors, leading to policy-level corruption. Black money in India refers to unreported income from illegal activities (crime, corruption, drug trade) or lawful earnings hidden to evade taxes. A Global Financial Integrity report (2010) estimated India lost $213 billion in illicit financial flows (1948–2008), with the underground economy around $640 billion (50% of GDP).
Example: The use of electoral bonds has raised concerns about lack of transparency in political funding.
10. Judicial Delays
Corruption cases take decades to resolve in Indian courts. This delay reduces fear of punishment.
Example: The Harshad Mehta Scam (1992) trial continued for years, showing how loopholes in the system allow accused persons to escape justice.
11. Crony Capitalism
Close ties between politicians and businessmen result in contracts and policies favoring select corporations instead of promoting fair competition.
Example: The term “crony capitalism” gained prominence during the 2014 elections, where allegations were made about selective benefits to large corporations.
12. Weak Citizen Awareness
Many citizens are unaware of their rights and grievance mechanisms. Lack of civic engagement reduces pressure on officials to remain accountable.
Impact of Corruption in India :
Economic: Slows growth, misuses public funds, raises costs for citizens.
Social: Increases inequality, denies basic services, reduces trust in government.
Political: Weakens governance, encourages unfair elections, reduces accountability.
Public Services: Poor infrastructure, inefficient bureaucracy, low-quality healthcare and education.
Global Image: Reduces foreign investment, harms international reputation.
Example: Funds meant for roads, hospitals, or welfare schemes often get misused, leaving citizens without proper services.
Legal and regulatory framework:
1. Legal Framework
These are the main laws that criminalize corruption and ensure accountability:
Prevention of Corruption Act, 1988 (PCA)
Punishes bribery, criminal misconduct by public servants, and abuse of official power.
Indian Penal Code (IPC), 1860
Sections 161–165: Bribery-related offenses
Sections 405–409: Criminal breach of trust and misappropriation
Right to Information (RTI) Act, 2005
Promotes transparency in government functioning.
Whistle Blowers Protection Act, 2014
Protects individuals exposing corruption from retaliation.
Companies Act, 2013
Penalizes corporate fraud and mismanagement.
2. Regulatory Framework
These bodies are empowered to investigate, monitor, and prevent corruption:
Central Vigilance Commission (CVC) – Apex vigilance body for government officials.
Central Bureau of Investigation (CBI) – Handles major corruption cases.
State Vigilance Commissions & Anti-Corruption Bureaus (ACBs) – Investigate state-level corruption.
Comptroller and Auditor General (CAG) – Audits government finances and projects.
Election Commission of India (ECI) – Monitors political funding and election transparency.
3. Judicial Oversight
Public Interest Litigations (PILs) and judicial activism have strengthened anti-corruption enforcement.
Landmark case: Vineet Narain vs. Union of India (1998) enhanced CBI independence and accountability.
4. International Conventions
United Nations Convention against Corruption (UNCAC), 2003
OECD Anti-Bribery Convention, 1997
India’s laws are aligned with these conventions to curb corruption globally.
How Ethics Prevent Corruption:
Ethics play a crucial role in preventing corruption by guiding individuals and organizations to act with integrity, fairness, and responsibility. When ethical principles are upheld, people are less likely to engage in bribery, fraud, or misuse of power, even when opportunities for corruption exist.
Promotes Integrity and Honesty: Ethical standards encourage transparency and truthfulness in decision-making, reducing the likelihood of dishonest practices. For example, a company with strong ethical policies is less likely to manipulate accounts or offer bribes to secure contracts.
Builds Public Trust: Organizations and governments that follow ethical practices earn the confidence of citizens, investors, and other stakeholders. High ethical standards reduce suspicion and the perception of corruption, thereby strengthening credibility and social cohesion.
Encourages Accountability: Ethics create a framework for responsibility and answerability. When officials or employees are guided by ethical codes, they are more likely to report wrongdoing, resist pressure to engage in corruption, and ensure fair processes.
Supports Fair Decision-Making: Ethical behavior ensures that decisions are made based on merit, legality, and social good rather than personal gain. This reduces favoritism, nepotism, and misuse of power.
Prevents Long-Term Economic and Social Damage: Corruption can erode economic growth, misallocate resources, and weaken institutions. By promoting ethics, societies can limit such damage, ensuring sustainable development and equitable opportunities.
In essence, ethics act as the moral compass that discourages corruption, fosters transparency, and strengthens institutions, making them more effective and trustworthy.
Conclusion:
Corruption in India remains a significant challenge, affecting economic growth, governance, and social trust. It leads to bureaucratic inefficiency, misallocation of resources, and a decline in the quality of public services, including education. Tackling corruption requires strong ethical practices, transparent systems, and strict enforcement of laws. By promoting integrity, accountability, and fairness at all levels, India can reduce corruption, strengthen institutions, and ensure sustainable development for its citizens.
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