Paper: GS – III, Subject: Economy, Topic: Economic Institutions, Issue: CPI 2025 Impacts of India’s Development.
Context:
The Corruption Perceptions Index 2025 highlights a worsening global trend of corruption. The global average score has declined to 42 out of 100, and 122 out of 182 countries score below 50. This indicates weakening governance, declining institutional credibility, and erosion of public trust across nations.
Key Takeaways:
INDIA’S POSITION: India scores 39 and ranks 91 out of 182 countries, placing it in the lower half globally. While India performs better than some neighbouring countries, it lags behind many developed and East Asian nations. The stagnation in India’s score over the past decade reflects persistent weaknesses in transparency, accountability, and institutional effectiveness despite strong economic growth.
CORE INSIGHT: Corruption is not merely a moral or legal issue. It is fundamentally an economic problem that affects efficiency and growth, and a strategic vulnerability that weakens institutional capacity and national competitiveness.
WAY FORWARD: India must strengthen institutional independence and reduce political interference. Regulatory simplification and reduction of compliance burden are necessary. Transparency mechanisms must be improved, and digital governance should be expanded. Judicial efficiency and contract enforcement must also be strengthened.
CONCLUSION: The CPI 2025 should be viewed as a benchmark for reform rather than a final judgment. India has strong institutional foundations, but sustained improvements in governance are essential. Countries that have improved their rankings have done so through continuous and long-term reforms. India must align governance reforms with its economic ambitions to ensure sustainable development.
Source: (The Hindu)
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