Corruption in India

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The NEET-UG 2024 paper leak reignited concerns over systemic corruption, institutional accountability, and the need for greater transparency and governance reforms in India's public institutions.

About Corruption in India

Corruption refers to the abuse of entrusted power or public authority for private or personal gain. It includes bribery, misuse of official position, criminal misconduct, and unethical decision-making, affecting public service delivery, procurement, regulatory decisions, elections, and welfare implementation.

The Central Vigilance Commission (CVC) and the Prevention of Corruption Act, 1988 (amended in 2018) recognise corruption in the form of bribery, criminal misconduct by public servants, and abuse of official authority.

According to the Corruption Perceptions Index (CPI) 2025 released by Transparency International, India ranks 91st among 182 countries, with a score of 39 out of 100.

Reasons Behind Corruption

Institutional Weakness

Weak enforcement due to delayed investigations, slow prosecution, limited autonomy of investigative agencies, and the requirement of prior government approval under Section 17A of the Prevention of Corruption Act weakens deterrence against corruption.

Administrative Discretion and Red Tape

Complex procedures, excessive regulations, and bureaucratic delays create opportunities for rent-seeking, bribery, and misuse of discretionary powers.

Weak Transparency Framework

Concerns have been raised that certain provisions of the Digital Personal Data Protection (DPDP) Act, 2023 may reduce transparency by expanding exemptions under the Right to Information (RTI) Act.

Judicial Delays

The prolonged disposal of corruption cases makes corruption a high-profit, low-risk activity, reducing accountability.

Political Corruption

Opaque political funding, crony capitalism, and lack of transparency in electoral financing weaken public confidence in democratic institutions.

Digital Divide

Although digital governance has reduced petty corruption, limited digital literacy and dependence on intermediaries continue to create new opportunities for exploitation.

Impacts of Corruption

Governance

Corruption weakens democratic institutions, reduces administrative efficiency, and erodes public trust.

Economic Impact

It increases project costs, discourages investment, distorts market competition, and promotes crony capitalism and inefficient resource allocation.

Social Impact

Corruption limits access to healthcare, education, food security, pensions, and other welfare services, disproportionately affecting vulnerable sections of society.

Political Impact

It undermines electoral integrity, weakens accountability, and encourages the misuse of public office.

Rule of Law

Selective enforcement and delayed justice weaken the rule of law and constitutional governance.

Has Digitalisation Reduced Corruption?

Direct Benefit Transfer (DBT) and JAM Trinity

The DBT system, supported by the Jan Dhan–Aadhaar–Mobile (JAM) Trinity, transfers benefits directly to beneficiaries, reducing leakages and eliminating intermediaries.

Aadhaar-Based Authentication

Aadhaar-enabled verification has reduced fraud in welfare schemes. Around 5.87 crore ineligible ration cards were removed from the Public Distribution System (PDS) through Aadhaar-based verification.

Government e-Marketplace (GeM)

The GeM portal has enhanced transparency in public procurement through competitive bidding, standardised specifications, and digital audit trails.

Faceless Tax Assessment and GST

Faceless income tax assessments minimise direct interaction between taxpayers and officials, thereby reducing opportunities for bribery.

Common Service Centres (CSCs) and DigiLocker

Common Service Centres and DigiLocker have improved digital service delivery and document verification while promoting paperless governance.

Challenges that Still Remain

Exclusion Errors

Poor implementation of digital systems may exclude genuine beneficiaries. For example, studies found that many cancelled ration cards belonged to eligible households.

Systemic Corruption Persists

Digital reforms have largely reduced petty corruption, while areas such as land allocation, environmental clearances, construction permits, and large public contracts continue to involve significant human discretion.

Digital Divide

Limited digital access forces many citizens to depend on agents and cybercafés, creating new forms of intermediary exploitation.

Digital Rent-Seeking

Intermediaries now charge citizens for assistance with online portals, Aadhaar updates, and biometric authentication, recreating corruption in digital form.

Legislative and Institutional Measures

Right to Information (RTI) Act, 2005

The RTI Act promotes transparency and accountability and has played an important role in exposing several major scams and governance irregularities.

Prevention of Corruption Act, 1988 (Amended in 2018)

The Act criminalises bribery and corruption and aligns India's anti-corruption framework with the United Nations Convention against Corruption (UNCAC).

Lokpal and Lokayuktas Act, 2013

The Act established Lokpal at the Centre and Lokayuktas in the States to investigate allegations of corruption against public officials.

Whistle Blowers Protection Act, 2014

The Act provides protection to individuals who report corruption, abuse of power, and misconduct by public servants.

Benami Transactions (Prohibition) Amendment Act, 2016

The Act seeks to curb black money, prevent benami property transactions, and improve financial transparency.

Prevention of Money Laundering Act (PMLA), 2002

The Act aims to prevent money laundering, confiscate illegally acquired assets, and combat financial crimes.

Institutional Mechanisms

Institutions such as the Central Vigilance Commission (CVC), Central Bureau of Investigation (CBI), Central Information Commission (CIC), and the Comptroller and Auditor General (CAG) play an important role in combating corruption.

Governance Reforms

Initiatives such as Digital India, e-Governance, Government e-Marketplace (GeM), Direct Benefit Transfer (DBT), Public Financial Management System (PFMS), and Aadhaar-enabled service delivery have improved transparency and reduced leakages.

Important Committees

Santhanam Committee (1964)

It recommended the establishment of the Central Vigilance Commission (CVC).

Hota Committee (2004)

It suggested reforms for improving integrity, accountability, and efficiency in the civil services.

Second Administrative Reforms Commission (2nd ARC)

The Commission recommended ethical governance, reduction in administrative discretion, stronger vigilance mechanisms, and better protection for whistle-blowers.

Law Commission

The Commission has emphasised speedy trials, institutional independence, and greater transparency in anti-corruption laws.

Way Forward

India should strengthen the Right to Information framework, ensure transparent appointments to Information Commissions, and provide greater autonomy to institutions such as the CBI, ED, Lokpal, and vigilance bodies. It should establish time-bound grievance redressal systems and fast-track courts for corruption cases. Greater transparency in political funding and public procurement, improved digital literacy, stronger social audits, enhanced whistle-blower protection, and effective implementation of the Second Administrative Reforms Commission (ARC) recommendations will be essential to promote ethical governance and build a transparent, accountable public administration.