About corruption in India. Corruption is a matter that affects the economic standing of state, central and local government units in numerous ways. The major impact of corruption in India is on the development process, growth of the economy and fiscal policy. For smooth functioning of the economic system, corruption destroys the fragile balance among the three. Corruption in the government sector has a direct impact on the policy of growth of the economy. The policy makers are slow in taking decisions and adopting pro-active measures.
There is a low ratio of government service personnel to population. This has a direct impact on corruption. When there is less bureaucracy in a state, it means that there is a high rate of graft and fraud in the service sector. When the number of service department and police officials increases, there is an increase in graft and thievery in the private sector.
The policies adopted by the government are not transparent. Several issues arise due to the disparity in public policies. In some cases, the policies followed by the government are not consistent with the principles of fundamental rights. A weakening of the rule of law and an increased tendency of graft in the society lead to increase in corruption in the country. The lack of political will to take steps against corruption in the public sector is another major cause for corruption in the country.
The increasing role of private sector in the economy also increases corruption in India. The presence of transnational companies in the Indian market has a direct and indirect impact on the corruption in the country. The inefficient performance of internal affairs system and poor performance of elected government results in a rise in corruption in the country. There is lack of effective policing system and failure of the system to tackle corruption internally makes things worse for the public at large.
A weakening of the rule of law and an increased tendency of graft in the society have been one of the many reasons for the increase in corruption in the country. The role of government in terms of encouraging business, promotion of private enterprise and use of state-owned resources for the benefit of individuals has also led to increase in corruption in the country. The failure of the system to tackle corruption internally is another major factor for the worsening of the crisis situation in the economy. However, corruption in the public sector can be checked through various measures such as the introduction of anti-graft legislation, introduction of securities laws, development of a strong rule of the thumb policy for tax collection, etc. In order to curb corruption in the public sector, it is important to increase the level of competition among private sector players, including the creation of more competitive private markets, better distribution of subsidies and the development of a more responsive and efficient revenue system.
Private Eye: The increasing role of private players in the Indian economy has also given rise to increasing corruption in the public sector. Companies often find it difficult to compete in the Indian market. Their selfish motives, political influence and cozy relationship with the government authorities are some of the most common factors that lead to the rise in corruption in the public sector. It is ironic that the government claims to be fighting corruption at the grass root level but it tends to mask corruption at the highest levels of the organization.
In spite of all these efforts by the government and private sector, corruption in the public sector still persists at a significant rate. The reasons for this could be many. One could argue that the increasing role of private players has not resulted in improvement in efficiency and quality of service delivery. Another possible reason could be that despite all the initiatives taken by the government, corruption has only worsened. The lack of political will to take on corruption in the public sector is another crucial factor.
There is no denying the fact that corruption in the public sector in India continues unabated. Whether it is government or a private sector, the government has failed to bring it under control. The government has also failed to provide any sort of financial aid to the private players who are involved in corruption. This failure of the government has led to the situation where graft has become the norm. This trend has become so rampant that there is now talk of the downfall of the government at all levels.