In News:

• India has climbed to the 91st position in the Corruption Perceptions Index 2025, improving from 96th rank in the previous year. However, its score of 39 out of 100 remains below the global average of 42, indicating that corruption continues to be perceived as a structural challenge in governance.
• The CPI is released annually by Transparency International and ranks 182 countries and territories based on perceived levels of public sector corruption. Scores range from 0 (highly corrupt) to 100 (very clean).

Global Trends in CPI 2025

• The global average score has declined to 42, reflecting stagnation in anti-corruption efforts worldwide.
• More than two-thirds of countries score below 50, indicating widespread governance challenges.
• Denmark (89) remains the cleanest country, while Somalia and South Sudan (9) rank at the bottom.
• Several established democracies, including the United Kingdom (20th) and the United States (29th), have witnessed declines.
• The report highlights risks faced by journalists investigating corruption, noting that 90% of journalist killings occur in countries scoring below 50-a category that includes India.

Reasons for Persistent Corruption in India

Despite incremental improvements, structural factors continue to affect perceptions:

1. Bureaucratic Red Tape: Complex regulatory processes and approval systems create opportunities for rent-seeking behaviour.

2. Political Funding Opacity: Lack of transparency in electoral financing and the influence of money power remain concerns.

3. Weak Whistleblower Protection: Individuals exposing corruption often face harassment or threats, discouraging reporting.

4. Inconsistent Enforcement: Low conviction rates in high-profile cases and delays in judicial processes reduce deterrence.

5. Informal Economy and Black Money: A large unorganised sector facilitates unaccounted transactions and tax evasion.

Anti-Corruption Measures Undertaken

India has adopted several reforms to improve governance and transparency:

• Digitalisation of Governance: Expansion of Direct Benefit Transfer (DBT) systems to reduce middlemen.
• Prevention of Corruption (Amendment) Act, 2024: Strengthened penalties and introduced asset forfeiture provisions.
• Blockchain-based Land Records and E-Tendering: To enhance transparency in public procurement.
• Central Vigilance Commission (CVC) Reforms: Adoption of AI-based financial scrutiny tools.
• Strengthened oversight by institutions such as the Central Vigilance Commission.

Key Challenges

• Overburdened judiciary causing delays in corruption trials
• Cross-border asset recovery challenges
• Technological misuse such as digital fraud and deepfake scams
• Weak local-level oversight in municipal and panchayat institutions

Significance for India

India’s CPI ranking has both economic and governance implications. Perceptions of corruption affect:

• Investor confidence
• Ease of doing business
• Regulatory credibility
• Democratic accountability

While the improvement from 96th to 91st rank signals incremental progress, the low score of 39 underscores the need for deeper institutional reforms, enhanced transparency in political finance, judicial efficiency and stronger protection for whistleblowers.