Corruption Perceptions Index 2025 (CPI) Overview
The CPI published by Transparency International reveals that corruption is worsening globally, affecting democratic accountability and public institutions. The average global score has fallen to 42 out of 100, with 122 out of 182 countries scoring below 50, indicating a troubling trend.
India's Position in the CPI
- Score and Rank: India scores 39 and ranks 91 out of 182 countries.
- Stagnation: Over the past decade, India's score has fluctuated narrowly between 38 and 41, indicating stagnation despite economic growth.
- Global Comparisons: India outperforms some neighbours like Bangladesh and Pakistan but lags behind others like China and many European countries that have strengthened institutional frameworks.
Significance of India's CPI Score
- Public Sector Integrity: The CPI measures perceived integrity using 13 independent data sources, indicating weaknesses in transparency and accountability.
- Economic Costs: Corruption carries significant economic costs, with global losses estimated at over $2.6 trillion annually, affecting India by roughly 0.5% to 1.5% of GDP.
Complexity of India's Compliance Architecture
- Entrepreneurs face 26,134 imprisonment provisions and 998 compliance obligations, creating conditions for rent-seeking and increasing business costs.
Positive Developments
- Digital Infrastructure: Initiatives like direct benefit transfers and the Goods and Services Tax network have reduced corruption opportunities.
- RBI Digital Payments Index: Increased digitization of payments is tracked, showing progress in reducing leakages.
Conclusion and Path Forward
Corruption is a strategic vulnerability affecting economic growth and governance. India's strong constitutional foundations and digital capacity provide an opportunity for improvement. Incremental reforms in transparency, regulatory simplification, and institutional independence are essential for climbing the CPI rankings.
