Deepening global corruption as a pointer for India, Pg6

Key Highlights:

• The Corruption Perceptions Index (CPI) 2025 reveals a global increase in corruption, with the global average score dropping to 42 out of 100.
• India's CPI score remains stagnant at 39, ranking 91 out of 182 countries, indicating persistent issues in transparency and accountability.
• Corruption is estimated to cost India 0.5% to 1.5% of its GDP annually, impacting resources for development.
• India's digital infrastructure and initiatives like Direct Benefit Transfer (DBT) and Goods and Services Tax (GST) show promise in reducing corruption.

Detailed Insights:

• The CPI measures perceived levels of public sector corruption, influencing investment decisions and sovereign risk assessments.
• Corruption increases transaction uncertainty, raises compliance expenses, and diverts entrepreneurial energy, reducing productivity and discouraging investment.
• India's complex compliance architecture, with over 26,000 imprisonment provisions in business regulations, creates opportunities for rent-seeking.
• Digital initiatives like RBI-DPI, which stood at 516.76 in September 2025, have shown improvements in reducing leakages in welfare schemes.
• Strengthening institutional independence, transparency frameworks, and regulatory predictability are crucial for improving India's CPI score.
• Addressing corruption is essential for India to achieve its goal of becoming a $10 trillion economy and attaining developed nation status by 2047.

Key Concepts Involved:

• Corruption Perceptions Index (CPI): A global index that measures the perceived levels of public sector corruption in different countries.
• Direct Benefit Transfer (DBT): A mechanism to transfer subsidies directly to beneficiaries' bank accounts, reducing leakages and improving efficiency.
• Goods and Services Tax (GST): An indirect tax levied on the supply of goods and services, promoting formalization and traceability in the tax system.

The Corruption Perceptions Index (CPI)